PowerPoint Presentation

Analyze futureapartment cash flowsCome to a decision about the price for purchase or listing of a multi-family / apartment for purchase or listing based on all the future cash flows that you estimate. Ratios and measures like cap rate, cash-on-cash, IRR, Net Present Value, will be used along with sensitivity analysis. All areas of the cash flow will be covered including revenues, expenses, loans, and capital spending with unlimited detail and after tax.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc1At the end you can do this!Create a micro website that has all the cash flows and explains the ratios, measures, and assumptions with a password. Just send the URL to whoever you want to have see the analysis.

Of course you and print the analysis as well.

www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc21. Starting Point - Entering General InformationVideo 3:15 MinutesClick on File/New Assumptions on menu bar.

Investment Name - 'Los Amigos Apartments'APOD Purpose - 'Broker's Recap'Property Location - '1000 Mayfair Avenue'Property Type - 'Apartment Complex'Square Feet or Units - '42'Fiscal Year Starts on - 'Jan 1'Comments - Leave Blank.And click OK.

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc3Play along?Enter the analysis with the tutorial using the full functioning free trial. You can follow the tutorial step by step, or enter you own analysis instead.FREE TRIALwww.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc42. Investment Page(Purchase and Sale)

Video 3:30 MinutesPrice of Property - '6000000'Closing Costs - '1'Date of Acquisition - '1.16'Holding Period - '10'Inflation Rate - '4'Sale Price MethodSelect Capitalize Next Year's NOISale Price Parameter - '8'Selling Costs - '6'

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc53. Investors Page(Tax & PV Discount Rates)

Video 3:21 MinutesClick on the'T'button next to General Vacancy & Credit LossTax Rate First Year - Federal 35 State 9.3Tax Rate Following Years - Federal 35 State 9.3Capital Gain Rate - Federal 20 State 0Cost Recovery Recapture Rate - Federal 25 State 0Click Paste to paste the Tax Rates.General Vacancy & Credit Loss 0Present Value Discount Rate Before Debt - 10Present Value Discount Rate Before Tax - 10Present Value Discount Rate After Tax - 10

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc64. AddingDepreciation(For after tax analysis)

Video 2:30 MinutesPage Title - BuildingDepreciable Amount - 83(Any number less than 100 is a % of the Price)Depreciable Life - 27.5(Residential 27.5 / Commercial 39)Leave all the other default values as is.

planEASe permits you to enter any life or method so you can depreciate any type of item. If a property you are analyzing has more depreciable items than this tutorial, you can repeat this Edit/Add Page process until all depreciable items are entered. Check the Audit Window at the bottom left of the screen to view the cash flows you have just entered. It should look as shown here. The smaller value in the first (and last) year is due to application of the IRSs half-month rule.

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc75A. Revenues(Group Units by Type ~ Multiple income streams)

Video 5:50 MinutesType One Bedroom Units in PageClick on the'C'button next to Annual Revenue.The pop up Calculator will appear, and can be configured to operate in Unit or SqFt mode, with rates entered as Months or Annual.:Units - 10$ / Unit / Mo - 1000SqFt / Unit - 650and click Paste to paste the calculation into the Annual Revenue.

Revenue Growth Method Select Annual (@ %> Inflation)Revenue Growth Rate 0 (at the Inflation Rate)Management Fee 5Vacancy Factor 3

This completes the One Bedroom Units revenues. The rents are growing at the inflation rate (4%).

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc85B. Revenues(Group Units by Type ~ Multiple income streams)

Page Title - Two Bedroom UnitsRevenue Growth Method - Select Annual (@ %> Inflation)Revenue Growth Rate - 0 (at the Inflation Rate)Vacancy Factor - 6Management Fee - 5

Click on the'C'button next to Annual Revenue:Units - 32$ / Unit / Mo - 1200SqFt / Unit - 750click Paste to paste the calculation into the Annual Revenue.

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.Video 5:50 Minutes

Click on Edit/Add Revenue Page on menu bar. A new Revenue Assumption Page appears for you to input more revenues. You can enter as many Pages as you desire.You have now completed the Two Bedroom Units revenues. Look at the Assumption Page List to top right and you will see Rev One Bedroom Units and Rev Two Bedroom Units now appear in the list. Ensure your Audit Window appears as shown here. These units are growing at the inflation rate (6%) annually.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc95C. Revenues(Group Units by Type ~ Multiple income streams)

Page Title - LaundryAnnual Revenue - 3600Revenue Growth Method Select Annual (@ %> Inflation)Revenue Growth Rate - 0(at the Inflation Rate)Vacancy Factor - 5Management Fee - 5

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.Video 5:50 Minutes

Click on Edit/Add Revenue Page on menu bar. A new Revenue Assumption Page appears for you to input more revenues. You can enter as many Pages as you desire.You have now completed the Laundry revenue. Look at the Assumption Page List to top right and you will see Rev One Bedroom, Rev Two Bedrooms, and Laundry now appear in the list. Ensure your Audit Window appears as shown here. These units are growing at the inflation rate (5%) annually.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc106A. Expenses(Multiple expense items)

Video 5:22 MinutesPage Title - Property TaxesAnnual Expense - 1.2(1.2% of Property Price)Expense Growth MethodSelect Annual(@ Growth Rate)Expense Growth Rate - 2Leave all the other default values as is.

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.This completes the Property Tax Expense Assumption Page. Taxes are growing at 2% - selecting Annual (@ Growth Rate) for the Expense Growth Method and entering 2% for the Expense Growth Rate will increase the expense every Jan by 2%. Check the Audit Window at the bottom left of the screen to view the cash flows you have just entered. It should look as shown here. Look to the top right Assumption Page List and you will see Exp Property Taxes is now on the list.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc116B. AddingExpenses(Multiple expense items)

Insurance Annual Expense 9000Pool Annual Expense 2400Gardener Annual Expense 1000Utilities Annual Expense 7200Expense Growth Rate 2Resident Manager Annual Expense 10000Maintenance Annual Expense 5000Reserve Annual Expense 5000Miscellaneous Annual Expense 1000

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.Video 5:22 Minutes

Click on Edit/Add Expense Page on menu bar, then type in specifications below for each expense page listed below. Select Annual@%>Inflation for each expense leaving the Expense Growth Rate at the "0" default except for Utilities".www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc127. Loans(Debt Coverage Ratio or Loan to Value)Video 2:40 MinutesPage Title - USA BANKLoan Amount - 80 % LTV or "1.2" DCR (Whichever is lower)Loan Interest Rate - 8Original Loan Period - 20Loan Points Charged - 1Leave all the other default values as is.

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.Your loan is now entered into your planEASe analysis. The Loan Amount can be entered in three different ways; as a dollar amount (any amount over 100) as a percentage of the price/loan to value (any number between 3 and 100) as done with 80 here as a debt coverage ratio (any number less than 3 will be a DCR based on the NOI the year the loan starts) Additional loans can be entered the same way when needed in an analysis. Check the Audit Window at the bottom left of the screen to view the loan you have just entered. It should look as shown here. Of course, the number of loans for a property is unlimited.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc138. Adding Capital Spending (Enter a cost item with a 5 year life Straight Line using the Half Year rule.)Page Title - RefrigeratorsDepreciable Life - 5Expenditure Date - 6.16Depreciable Start Date - 6.16

Assuming the refrigerators will be purchased 5 months after the building is acquired (on 1 June 2005) so the dates have to be changed from the acquisition default date.

Click on'C'next to Depreciable Amount to bring up Calculator, type in the following specifications, then click Paste.

Units - 42$ / Unit - 550

Verifying Your Entries- Click on Basic button to bottom right. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.Video 3:10 Minutes

Click on Depr Building in the Assumption Page List to the top right, then click on Edit/AddDepreciationPage on menu bar. Remember how you added more Revenue and Expense Assumption Pages? You use the same steps to add more Depreciation Assumption Pages.www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc149. Adjustment Time - Sensitivity Analysis (Vary assumptions for 'What If's')Video 7:24 MinutesYou can vary any assumption that you entered, and see the resulting returns or ratios. Just to get you started here are a few to do.Click on Sensitivity button to bottom right. You are now in Sensitivity Analysis. You are going to vary the price of the property and see how it affects the IRR After Tax.Click on Price of Property to top left, then click onRate of Return After Tax (IRR)to bottom left. Type in the specifications below, and press the Run button. Starting at 5500000" Stopping at 6000000" In Steps of 50000You will see planEASe calculates the Price of Property versus Rate of Return After Tax for the values you entered. The After Tax IRR takes all the assumptions over the 10 year holding period into account. All assumptions that are link to the Price of Property (like Closing Costs and the Depreciation Amount) are changing at the same time.Click on Another to Top right. Click on Price of Property to top left, then click onNet Capitalzation Rateto bottom left. Go ahead and do a few more, the video will give you more examples.

www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc15Suggested Reports for Unit InvestmentsFor presenting you can create a website from the analysis very quickly by selecting File/Publish to Web, and then email the URL to your selected audience.Alternativly you can printout as paper or to a PDF print driver, individual reports or packages that you create. Here is a list of some of the reports:

APOD Video 4:45 Min Detail and Basic Analysis Video 3:05 Min Acquisition Report Video 0:55 Min Sale Report Video 2:35 Min Proforma Income Statement Video 10:35 Min Rent Roll Report Video 1:40 Min Annual Statements Video 1:42 Min Assumptions Report Video 2:20 Min Title Pages Video 1:37 Min

www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc16Extra VideosAdjustable LoansVideo 3:15 MinutesCompare LoansVideo 3:43 MinutesCompare InvestmentsVideo 1:47 MinutesCombine InvestmentsVideo 2:45 Minutes

www.planease.comAnalyze the cash flow for investments like Apartments, Self-Storage, Mobile Home Parks, Marina Slips, Multi-Family, etc17