Author: Chris Woods

How to Create Best-Case and Worst-Case Property Analyses in REIA Professional

You already know that pro forma property analysis is an essential part of due diligence before jumping in and spending your money on a real estate investment.  You also know the value of the pro forma analysis is only as good as the care and consideration you give to all your assumptions about the purchase, operation and sale of the property.  Part of being a cautious and calculating investor is to consider best-case assumptions, worst case assumptions and some case in between.  Fortunately, this is an easy matter with RealData’s REIA Professional.

Here’s how:

  1. Create your initial analysis with REIA Pro with a complete set of assumptions.  It does not matter whether these are conservative or aggressive, just save the file with an appropriate name such as “300 Main Street conservative.xltm”
  2. After saving, use Excel’s Save As function to save a copy of the file with a new name.  That file might be  “300 Main Street aggressive.xltm”  Repeat the process for your third case.
  3. Adjust the data in the second two files to match the case.  Save the files.
  4. Open our Comparison Analysis add-on for REIA.
  5. Click the Add Property button to include all three of the files you have created for your property.  You will then see a side-by-side comparison of key metrics for all of the three cases.

Also consider using our new Decision Maker worksheet right within REIA Pro.  This unique dashboard tool allow you to see how 21 metrics (such as Cash on Cash and IRR) change as you change key assumptions about your purchase.  Change purchase price, vacancy rate, loan terms, etc.

Use these exercises to determine just how well your property might perform under a variety of future occurrences.

 

Update – Personal Financial Statement for Macintosh

We have just rolled out a small but significant update, build 1.79, to the Mac edition of our Personal Financial Statement (PFS) product.

This update brings the popular Import utility from PFS Windows to the Mac along with the User Worksheets feature which is common to all our products.

personal-financial-statement-new-features

 

For those of you unfamiliar with this feature, User Worksheets gives one the ability to add / edit / delete additional worksheets within our product to extend and customize product functionality to fit your specific needs.

The Import utility makes quick work of drawing in all your information from an earlier PFS version 4 workbook.  Just open your old financial statement along with the new blank financial statement template – with one click, all data copies to the new file.

Note that RealData maintains two separate editions for all our products for Windows and Macintosh.  This is essential to assure our products work correctly as intended.  We always develop and test each release on respective Windows and Mac computers.

 

New Software Updates to our Macintosh Products

We have just completed a series of important updates to most of our Macintosh products which address printing and other issues for those users who have Excel 2011. These products include Real Estate Investment Analysis (REIA) Professional, REIA Express, Commercial/Industrial Development, On Schedule and Personal Financial Statement. Please see our software updates page for release dates and build numbers.

We encourage all registered users to download these free updates.  If you need to download the latest build, login to your customer account or open a support ticket and we would be happy to assist you.

These Macintosh updates follow our release of REIA Professional version 17 for both Windows and Mac.  We were busy this spring coding such new features as waterfall returns for partnerships, revised tax calculations, updates to our Commercial Income worksheet including individual base years for expense pass-throughs, and the addition of tenant improvements to the new unit and tenant rollover “wizards.”  See all the details of the upgrade on the REIA product page.