Category: RealData software

Macintosh Users – Important Info Regarding Excel Compatibility

We have been enthusiastic users of Macintosh computers since the early days of RealData. In fact ours were among the first business applications available on the Mac in 1984. There are plenty of die-hard Mac users in our customer ranks, but even they will be frustrated with an apparent Excel 2016 bug which now affects our products.

At this time, all RealData software for Mac will run on both Excel 2011 and Excel 2016 (aka Office 365).  However, if you have the latest Excel 2016 for Mac, then you will not be able to print any images, including graphs, to PDF reports. Thankfully this does not affect hard printing of reports.  We have not been able to come up with a workaround, so wait we must until Microsoft patches this issue.  UPDATE!  This issue has been fixed in the May 23, 2018 release of Office 2016.  Be sure to update to the latest release.

An important tip for all Mac users – be sure to update Excel to the latest release and also be sure to use the latest build release of your RealData products.  For most of our products, only the latest release of the latest version of each will run on Excel 2016.

For more info on updating Excel, see our knowledge base article: https://www.realdata.com/content/knowledgebase/excel-2011-how-to-check-version-and-how-to-update/

2018 Tax Reform and our REIA Software

A number of customers have asked if we’re updating our Real Estate Investment Analysis software because of the passage of the new tax law, effective in 2018. There’s still ambiguity about some provisions of the Tax Cuts and Jobs Act (which some might prefer to call the Law of Unintended Consequences), but we probably can parse it enough to make a few adjustments to the program. It may surprise you to know that, so far, we see the need for only a few simple changes in the software. But, of course, as technical corrections or other updates to the law occur, there could be others.

The most important is that there are new tax brackets:

Tax rate Single
10% Up to $9,525
12% $9,526 to $38,700
22% $38,701 to $82,500
24% $82,501 to $157,500
32% $157,501 to $200,000
35% $200,001 to $500,000
37% $500,001 or more
Tax rate Married filing jointly
10% Up to $19,050
12% $19,051 to $77,400
22% $77,401 to $165,000
24% $165,001 to $315,000
32% $315,001 to $400,000
35% $400,001 to $600,000
37% $600,001 or more

 

On the assumptions page, you’ll see that we now use 24% as the default entry, but you can enter whatever is appropriate for you.

Other rates and thresholds – such as capital gain and Net Investment Income Tax – appear to be unchanged in the new law.

Under the depreciation choices, we’re removing what had been called “Optional 40-Year Straight Line for Residential or Non-Residential.” That also goes by the name, “Alternative Depreciation System,” and this year is changed to be 40 years for commercial, 30 for residential. We’ve encountered very few of our customers who use that, so we felt we could take this opportunity to simplify the data entry a bit. We’ve kept the choice of “Other Straight Line,” which allows you to accomplish the same result.

These changes are free of charge as part of a “new build” update. Download this latest build by logging into your customer account at https://realdata.com and going to the “Sign In” link at the top right of any page. If you are using the Windows version, you may also click the “check for updates” button on the Welcome sheet of your REIA program. We are happy to assist you via email, so look also to the upper right for a link to email us

Finally, a side note about an interesting tax item that is not in the program:

We have never dealt with income tax issues in our partnership analysis because partnerships typically pass income through to individuals, each of whom in turn pays tax personally on their portion of that income. However, a new provision in the 2018 law may potentially provide a 20% deduction of Qualified Business Income derived from such pass-through entities.

To figure who qualifies and how much might be deducted personally is not for the faint of heart, but if you expect to be the recipient of Qualified Business Income from a real estate partnership, this Cornell law school has a flow chart might be helpful.

Finally, a note on why we don’t try to go beyond a general estimate of tax consequences in our software. Particularly with the changes in the 2013 and 2018 bills, the tax system has taken an increasing holistic approach. Your other investments and income from other sources can impact how much your overall tax liability grows when you add a new investment to the mix. Pretty much everything is connected.

Analysis of a single property cannot realistically address an investor’s entire financial life. We try to gather from you a modest and reasonable amount of information, so we can give you back what we hope will be reasonable estimate of consequences.

As the year goes on, if there are any changes or technical corrections to the law that we feel should affect the program, we’ll let you know here on our blog.

— Frank Gallinelli

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Your time and your investment capital are too valuable to risk on a do-it-yourself investment spreadsheet. For more than 30 years, RealData has provided the best and most reliable real estate investment software to help you make intelligent investment decisions and to create presentations you can confidently show to lenders, clients, and equity partners. Find out more at www.realdata.com.

 

Copyright 2018,  Frank Gallinelli and RealData® Inc. All Rights Reserved

The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealData® Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

Update to REIA Express

Today we’ve released new build 1.18 of our Real Estate Investment Analysis Express edition.

This build contains a new feature in the Rent Roll: If you select a commercial property type on the General worksheet, it will hide appropriate columns on the Rent Roll, namely Number of Bedrooms and Number of Bathrooms. Placeholder names for unit types adjust according to property type that you select.

This feature is currently available in the Windows release only. We hope to roll out this improvement for Mac users in a few weeks.

New Software Updates, Equity Multiple Calculation

This week marks the release of a new feature in our REIA product line as well as important updates to our development programs for the Mac.

We have just added the Equity Multiple calculation to both REIA Express and Pro, for both Windows and Macintosh. Download the latest builds of these products to view this metric on the Analysis of Resale and Summary Cash Flow and Resale Analysis reports. You will also find Equity Multiple on our Decision Maker sensitivity analysis dashboard.

Also newly released are updates to C/I Development and On Schedule for the Mac.  These two updates bring these products in line with their Windows counterparts by adding features such as waterfall returns in the Partnership modules.

RealData customers should open their software and look for the “Check for Updates” button on the Welcome worksheet, or login to their customer account to download the latest release of these products.

 

New REIA v18 Releases for the New Year – Mac and Windows

With the new year comes the release of REIA version 18 for Mac. This release has all the same features, calculations and reports that are found in the Windows release. Like all of our Mac  products, it will run under Mac Excel/Office 2011 only. We continue to wait for Microsoft to make fixes and improvements to Excel 2016 so that our software will run correctly in that version. REIA v18 on the Mac runs on Excel 2011, Excel 2016 and Excel/Office 365.

Also available for immediate download is a maintenance update for REIA v18 Windows. This update fixes minor issues in the Cover Sheet and Cash Flow / Resale Assumptions reports. Customers who own a license of the software can download the latest build 1.07 from either the Welcome worksheet of their product or via their customer account at realdata.com

Keep track of all latest releases on our builds page.

 

New software builds across the Windows product line

We have recently rolled out new builds of all of our Windows products.  The main objective was to include a new in-house PDF printer which replaces the third party product we have relied upon for over a decade.

The new printer provides a number of advantages:

  • It immediately solves a print fail issue that arose with Windows 10.  All customers who have Windows 10 are encouraged to update to the latest build immediately.
  • We created the new PDF printer in-house so we can more quickly diagnose and respond to any issues that may arise.
  • Our solution is a much smaller file and runs faster.

Also included in this round of updates are cosmetic and other minor changes.

All customers running the latest release of our products should download the latest builds – do this via the “Check for Updates” button on the Welcome worksheet of your product or login to your customer account at realdata.com

View the latest builds of each product on our builds page.

 

New Lease Renewal Assumptions feature for REIA Professional

Making assumptions and entering data about commercial lease revenue — especially rollovers — was often a tedious undertaking. Until now.

Enter our latest game changer: REIA Professional’s Lease Rollover Assumptions

What is it?

Our new Lease Rollover Assumptions feature (LRA) is a way for you to store sets of parameters about different commercial lease rollover scenarios, parameters which you can use over and over when entering tenant information in REIA Professional. What is the probability that a current tenant will renew? How long do you think the space will be vacant if a tenant chooses not to renew?

Build your assumptions sets, add your tenants, and apply the LRAs. Done.

You rely on our products to crunch the numbers quickly and accurately so you can make the best and most profitable commercial investment decisions. LRA brings you a whole new level of power and speed.

How it works

First, create a set of assumptions on the new LRA worksheet.  Enter values for months vacant, rollover probability, new and market rent, etc.

lra4

Then apply those assumptions to a tenant just by selecting the option on the Commercial Income worksheet:

lra5

How to get it

If you already own a license of REIA Professional version 18, then you just need to download the latest build from your customer account at realdata.com

If you have a previous version, consider upgrading.  Upgrade costs can be found here.

Learn More

We have a knowledgebase article which walks you through the setup and configuration of the LRA feature.

New Version of our Income-Property Video Tutorial

Screenshot 2016-06-30 09.36.08We’ve just released an updated version of our video tutorial, How to Evaluate an Income Property Investment with REIA Pro. We’ve given the video a serious makeover — additional content, better audio and graphics, greater emphasis on how to use RealData’s REIA software to perform an analysis — and have added a seventh video that provides an overview of some of the software’s more advanced features.

•    You get access to the web-based video series on our new e-learning platform. Watch it online at your convenience — on your desktop or mobile device.
•    The property analysis is based on a sample case study of a mixed-use property.
•    The series uses our REIA Pro product to analyze the investment, but many of of the features portrayed in the videos are found in the REIA Express edition.
•    The series is presented by Frank Gallinelli, founder of RealData, Inc.
•    Includes seven videos with over 2 hours of instruction

If you’ve already purchased the original release of this series, you’ll receive an email with instructions on how to get the new version at no charge. If you haven’t purchased it before, we invite you to download the case study and view a lesson-by-lesson synopsis.

New REIA Professional version 18 for Windows

This week we introduce version 18 of Real Estate Investment Analysis, Professional Edition.  It is available immediately for purchase, either for 30-day licenses or time-unlimited licenses. We offer upgrade paths for those who have been with us through previous releases.  Currently, this version is available for Windows only.

What is New?

  • Fiscal Year Option – Sometimes a perfectly obvious and useful feature is overlooked.  In the past year, a number of users suddenly started asking about the option to display data with fiscal year headings — i.e., Year 1, Year 2, etc. — rather than with calendar years. Even RealData’s founder, Frank Gallinelli, insisted on this new feature when he realized his grad students could follow a presentation more easily this way! Now you can have this by ticking a single checkbox in the General settings to make this change throughout the program.

Fiscal Year Option in REIA Pro

Fiscal Year Headings in REIA Pro v18

  •  Sale-Year Cap Rate: Choose Year-by-Year – Nothing lasts forever, not even market cap rates. You might want to test scenarios where the so-called “terminal cap rate” — the rate you expect to be in play in the future — rises or falls over time. Now for every potential resale year, you can elect to use a different cap rate if you like.
  • Syndication Fees – Users of our Partnership Analysis module have been asking for the ability to handle syndication fees, and of course we listened. Account for acquisition or disposition fees, as well as ongoing asset management fees.Partnership Syndication Fees
  • New Report Templates for Graphic and Property Narrative – You now have two free-form pages where you can create your own report pages. One is designed to accommodate a graphic. It could be a property photo, floor plan, map — any image file. The other is a property narrative, where you can use as much or as little of two text columns to tell this property’s story. You can style the text, as well as create paragraphs and headings.Narrative Report new in REIA v18Picture Report REIA v18
  • Zoom Worksheet ViewGlobally adjust view +10% +25% etc. – Perhaps your desktop has one screen resolution and your laptop something totally different. And maybe neither of them looks good in the default view when you open the program. In the past you had to change the “zoom” setting for each worksheet individually, but we’ve added a function that allows you to apply a global view setting across all the sheets. So whether you want big type or small, the solution is a click away.
  • Even more – Drag and drop the order of reports when printing; get help from improved and expanded documentation, cell notes, and knowledgebase

New Build Release for REIA Pro v17

Yesterday we released build 1.12 of REIA Pro which fixes two minor issues:  first, the Hide Taxes option was not working correctly with one report and second, we have implemented an improvement to the code which controls the saving and closing of the workbook so that you will not be prompted to save the file if you have not made any changes.

All customers who have a license of the REIA Professional v17 software are encouraged to update their software.  Just click on the “Check for Updates” button on the Welcome worksheet, or login to your account at realdata.com to get the latest installer file.