Do you invest in self-storage properties? Then you know you have to crunch the numbers before buying to be sure you are investing in a profitable venture. Our Real Estate Investment Analysis software (“REIA Professional”) can help.
Gather Your Assumptions – Plug in the Data
Regardless of how you evaluate an investment, you will need to assemble your assumptions of income, expenses, financing, etc. Take those numbers and plug them into REIA Professional. The software has separate worksheets to enter your income by unit, your property’s expenses, vacancy rate, lease-up, financing and more. Once you have entered your figures, the software produces a series of reports and a long list of return-on-investment (ROE) metrics. Those metrics include cash-on-cash, debt coverage ratio, net operating income, internal rate of return, and many more. If those terms are immediately familiar, we can help there, too. RealData’s founder, Frank Gallinelli, has written several books and created online video series to help investors.
Vacancy and Lease-Up
It’s not uncommon to encounter existing self-storage properties with lots of vacancy. REIA can help you model different situations where you have different vacancy and different paths to lease up.
The REIA Pro software has several specific income worksheets including one designed specifically for self storage investments. You can enter as many units or unit types that you need. Creating your rent roll is quick and easy. Just enter a name for each type of unit present on the property, add a square footage value for each and then indicate the number of each type of unit. Set the type of income and the first year amount. Finally, indicate how rents increase each year. Increases can be set as percentages or dollar amounts.
Once you have entered the income assumptions as shown above, just open the RealData print menu to create your report. The software does all the work to set things up for you.
Existing Self-Storage, New Construction or Value-Add?
REIA Pro can evaluate any type of self storage investment from ground-up construction, value-add projects where you expand and/or improve an existing facility or existing self storage properties. There is an optional construction feature to add costs for new units.
Are you using private equity to buy your property? REIA creates reports for your investors and shows their returns. Easily set up preferred return, waterfall returns, management fees and more.