Real Estate Investment Analysis Version 17 - RealData

Real Estate Investment Analysis Version 17.0 User's Guide

RealData? Inc. P. O. Box 691

Southport, CT 06890

? 1982-2015, RealData? Inc. RealData is a registered trademark of RealData, Inc.

Real Estate Investment Analysis Version 17.0

1982-2015, RealData Inc. All rights reserved.

This software and manual are both protected by U.S. copyright law (Title 17 United States Code). Unauthorized reproduction and/or sales may result in the imprisonment of up to one year and fines of up to $10,000 (17 USC 506). Copyright infringers may also be subject to civil liability.

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RealData? Inc.

P. O. Box 691

Southport, CT 06890



Real Estate Investment Analysis, Version 17.0 User's Guide

Table of Contents

Chapter 1. Introduction and General Information..................................................... 1 What`s New in REIA, Version 17.0 ............................................................................................ 1 System Requirements................................................................................................................... 2 Excel 2007 ? 2010 - 2013 ........................................................................................................ 2 License Information ..................................................................................................................... 3 Additional Disclaimers ................................................................................................................ 3 Files, Worksheets and Reports..................................................................................................... 4 Opening and Using Files and Worksheets ............................................................................... 4 RealData Menu .................................................................................................................... 7 Printing Reports ....................................................................................................................... 9 Printing Reports to a PDF File........................................................................................... 10 Entering Data ......................................................................................................................... 11 The 21st Year...................................................................................................................... 12

Chapter 2. Welcome, Quick Start and General ........................................................ 14 The Welcome Page .................................................................................................................... 14 The Quick Start Page ................................................................................................................. 14 What the General Worksheet Does ............................................................................................ 14 Entering Data in the General Worksheet ................................................................................... 14 Property Information.............................................................................................................. 14 Month and Year Analysis Begins, Date of Report................................................................. 15 Investor and Report Prepared For and By.............................................................................. 15 Logo ....................................................................................................................................... 15 Analysis Mode ....................................................................................................................... 15 Safe Rate, Reinvestment Rate, and Discount Rate ................................................................ 16 Checkbox to Display REIA Toolbar...................................................................................... 17 Checkbox to Hide Report-Only Worksheets ......................................................................... 17 Checkbox to Hide Taxes........................................................................................................ 17 Canadian Amortization .......................................................................................................... 18 On-Screen Alerts.................................................................................................................... 18 Reversion ............................................................................................................................... 18 Currency, Length and Area Settings ...................................................................................... 18

Chapter 3. Quick Analysis........................................................................................... 20 What the Quick Analysis Worksheet Does ................................................................................ 20 Entering Data in the Quick Analysis Worksheet ....................................................................... 20 Purchase Information ............................................................................................................. 20 Financing Information ........................................................................................................... 21 Annual Property Operating Data ........................................................................................... 22 Resale Information................................................................................................................. 23 Capital Improvements............................................................................................................ 24 Quick Analysis Report ............................................................................................................... 24

Chapter 4. Short Term Analysis ................................................................................. 26 Short-Term Rent Roll ................................................................................................................ 26 What the Short-Term Rent Roll Does.................................................................................... 26 Entering Data in the Short-Term Rent Roll Worksheet ......................................................... 26 Short-Term Operating Data ....................................................................................................... 27

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Real Estate Investment Analysis, Version 17.0 User's Guide

What the Short-Term Operating Data Worksheet Does ........................................................ 27 How to Use the Short-Term Operating Data Worksheet ....................................................... 27 Entering Data in the Short-Term Operating Data Worksheet................................................ 27

Assumptions....................................................................................................................... 28 Vacancy & Credit Allowance ............................................................................................ 28 Expenses ............................................................................................................................ 28 Altering Titles in the Assumptions Section ........................................................................... 28 Short-Term Operating Data Results....................................................................................... 28 Short-Term Cash Flow and Resale ............................................................................................ 29 What Short-Term Cash Flow and Resale Does ..................................................................... 29 How to use Short-Term Cash Flow and Resale ..................................................................... 29 Entering Data in Short-Term Cash Flow and Resale ............................................................. 29 The Four Assumptions........................................................................................................... 30 Assumption One: Purchase .................................................................................................... 30 Assumption Two: Financing................................................................................................. 30 Assumption Three: Resale .................................................................................................... 32 Assumption Four: Capital Improvements ............................................................................. 33 The Completed Worksheet......................................................................................................... 33 Goal Seek ................................................................................................................................... 33 Short-Term Executive Summary................................................................................................ 35

Chapter 5. The Income Worksheets ........................................................................... 37 Residential Income..................................................................................................................... 37 What the Residential Income Worksheet Does...................................................................... 37 Entering Data in the Residential Income Worksheet ............................................................. 37 Quick Commercial Income ........................................................................................................ 39 What the Quick Commercial Worksheet Does ...................................................................... 39 Entering Data in the Commercial Worksheet Worksheet ...................................................... 39 Self Storage Income ................................................................................................................... 39 What the Self Storage Income Worksheet Does .................................................................... 39 Entering Data in the Self Storage Income Worksheet ........................................................... 39 Hotel Income.............................................................................................................................. 39 What the Hotel Income Worksheet Does............................................................................... 39 Entering Data in the Hotel Income Worksheet ...................................................................... 40 Continuing Care Income ............................................................................................................ 40 What the Continuing Care Income Worksheet Does ............................................................. 40 Entering Data in the Continuing Care Income Worksheet .................................................... 40 Commercial Income ................................................................................................................... 41 What the Commercial Income Worksheet Does.................................................................... 41 Entering Data in the Commercial Income Worksheet ........................................................... 41 Summary Section ................................................................................................................... 41 The Unit Block....................................................................................................................... 42 Adding, Editing or Deleting a Unit .................................................................................... 42 Additional Rent Changes ................................................................................................... 45 Rollover Wizard................................................................................................................. 46 Total Base Rent.................................................................................................................. 48 Expense Recoveries ........................................................................................................... 48 Other Revenue and Abatements......................................................................................... 49 Pass-Through Expense Base .............................................................................................. 49 Tenant Improvements ........................................................................................................ 49

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Real Estate Investment Analysis, Version 17.0 User's Guide

Commissions...................................................................................................................... 49 Total Unit Income .............................................................................................................. 50 The 21st Year...................................................................................................................... 50 Notes .................................................................................................................................. 50 Commercial Income Reports ..................................................................................................... 50

Chapter 6. Annual Property Operating Data (APOD)............................................. 52 What the APOD Worksheet Does.............................................................................................. 52 How to Use the APOD worksheet ............................................................................................. 52 Entering Data in the Annual Property Operating Data Worksheet ............................................ 52 Assumptions .......................................................................................................................... 52 Gross Scheduled Income - Override .................................................................................. 53 Vacancy & Credit Allowance ............................................................................................ 54 Operating Expenses ........................................................................................................... 54 Property Management .................................................................................................... 54 Repairs and Maintenance ............................................................................................... 54 Other Line Items ............................................................................................................ 55 Increase All Operating Expenses ........................................................................................... 55 Altering Titles in the Income-and-Expense Section .............................................................. 56 Expense Recoveries ............................................................................................................... 56 APOD Results ............................................................................................................................ 57 Projected Income and Expenses ............................................................................................ 57

Chapter 7. Cash Flow and Resale ............................................................................... 61 What Cash Flow and Resale Does ............................................................................................. 61 How to use Cash Flow & Resale Assumptions.......................................................................... 61 Entering Data in Cash Flow & Resale Assumptions ................................................................. 61 The Five Assumptions ............................................................................................................... 62 Assumption One: Purchase .................................................................................................... 62 Assumption Two: Financing................................................................................................. 63 Financing: Mortgages ........................................................................................................ 63 Mortgages: Year and Month the Loan Begins .............................................................. 64 Mortgages: Principal Amount ....................................................................................... 64 Mortgages: Term of the Loan ....................................................................................... 64 Mortgages: Interest Only .............................................................................................. 64 Mortgages: Payment to Override Calculation............................................................... 64 Mortgages: Loan Points ................................................................................................ 65 Mortgages: Interest Rate ............................................................................................... 65 Financing: Balloon Existing Loans and Refinance........................................................... 66 Assumption Three: Resale .................................................................................................... 67 Assumption Four: Taxes ....................................................................................................... 69 Major Provisions Affecting Real Estate............................................................................. 71 Depreciation ................................................................................................................... 71 Capital Gains.................................................................................................................. 71 Deductibility of Real Estate Losses ............................................................................... 71 At-Risk Rules................................................................................................................. 72 Alternative Minimum Tax ............................................................................................. 72 Entering Data in Taxes ................................................................................................... 72 Assumption Five: Capital Improvements & Funded Reserves ............................................. 74 Improvements, Reserves .................................................................................................... 74

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