Presenting Real Estate Investment Numbers to J.V. Partners What my slide deck looks like  (with a little bit of explanatio...
Purchase $190,000.00 Down Payment $19,000 Legal Fees $  1,000 Reserve Fund $  4,500 Title Insurance $  1,000 Insurance $  ...
Purchase $190,000.00 Down Payment $19,000 Legal Fees $  1,000 Reserve Fund $  4,500 Title Insurance $  1,000 Insurance $  ...
Purchase $190,000.00 Down Payment $19,000 Legal Fees $  1,000 Reserve Fund $  4,500 Title Insurance $  1,000 Insurance $  ...
Purchase $190,000.00 Down Payment $19,000 Legal Fees $  1,000 Reserve Fund $  4,500 Title Insurance $  1,000 Insurance $  ...
Purchase $190,000.00 Renovations $25,000 Appraised Value After Renovations:  $250,000
A Warning About These Numbers: Renovation Costs are estimates. In reality (Aug/08), the actual cost was  $25,323.34. Renov...
A Warning About These Numbers: The analysis beyond this point is based on a few rules, and is an projection and estimate o...
Cash Flow Analysis Income Rent $1,500.00  Expenses Property Mgmt (8%) $  120.00  Condo Fees   $  255.00  Property Taxes   ...
 
Annual and Total  Positive Cash Flow    Annual   Total Year 1  $2,943.49   $2,943.49  Year 2  $3,643.69   $6,587.18  Year ...
Appreciation Model: Estimated 5% per Year for Five Years Value at Purchase $250,000.00 Estimated Value 2013 $312,500.00 Mo...
Gross Profit $154,897.65 Investment Returned $54,800.00 Net Profit $100,097.65 Split 50/50 $50,048.83
Investment  $54,800.00 Estimated Return $50,048.83 Return on Investment 91% (Five Years) 18% Per Year
Investment  $54,800.00 Cost of Borrowing  $13,700 $54,800 for five years  at 5%.
Investment  $54,800.00 So instead of costing you $54,800 in cash, it can actually cost you $13,700.
Investment  $54,800 $13,700
Investment  $54,800 $13,700 That’s like getting a real estate investment on sale for 75% off! You could buy 4 properties f...
Investment  $54,800 $13,700 But the real point is:
Investment  $54,800 $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73%  (Per Year)
Investment  $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year You find me a stock or...
Investment  $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year This projection uses 5...
<ul><li>Basic Rules of This Presentation: </li></ul><ul><li>This presentation, as well as the calculations, estimations an...
Credits: From Stock Exchange (click to link) Taken by me, circa August 2005. For more real estate investor resources, chec...
Upcoming SlideShare
Loading in...5
×

Presenting Real Estate Investment Numbers to J.V. Partners

3,440

Published on

A sample slide deck to help me teach people how to present numbers without making them excessively complicated. I'll blog a full description on http://www.chrisdavies.ca in the near future.

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
3,440
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
45
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Presenting Real Estate Investment Numbers to J.V. Partners"

  1. 1. Presenting Real Estate Investment Numbers to J.V. Partners What my slide deck looks like (with a little bit of explanation) ChrisDavies.ca
  2. 2. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800
  3. 3. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  4. 4. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  5. 5. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  6. 6. Purchase $190,000.00 Renovations $25,000 Appraised Value After Renovations: $250,000
  7. 7. A Warning About These Numbers: Renovation Costs are estimates. In reality (Aug/08), the actual cost was $25,323.34. Renovation costs can change rapidly, and $25,000 is an estimate only.
  8. 8. A Warning About These Numbers: The analysis beyond this point is based on a few rules, and is an projection and estimate only. All calculations are simple, rather than compound. NEVER use these as anything but an estimation, a best guess, or a projection. Do your own homework!
  9. 9. Cash Flow Analysis Income Rent $1,500.00 Expenses Property Mgmt (8%) $ 120.00 Condo Fees $ 255.00 Property Taxes $ 88.00 Vacancy (4%) $ 60.00 Repairs & Maint (4%) $ 60.00 Mortgage (4.5%, I Only) $ 671.71 Total Expense $1,254.71 Net (Monthly): $ 245.29
  10. 11. Annual and Total Positive Cash Flow Annual Total Year 1 $2,943.49 $2,943.49 Year 2 $3,643.69 $6,587.18 Year 3 $4,288.90 $10,876.07 Year 4 $4,966.37 $15,842.44 Year 5 $5,677.71 $21,520.15
  11. 12. Appreciation Model: Estimated 5% per Year for Five Years Value at Purchase $250,000.00 Estimated Value 2013 $312,500.00 Mortgage Outstanding $179,122.50 Appreciation $133,377.50 Cash Flow $21,520.15 Estimated Gross Profit $154,897.65
  12. 13. Gross Profit $154,897.65 Investment Returned $54,800.00 Net Profit $100,097.65 Split 50/50 $50,048.83
  13. 14. Investment $54,800.00 Estimated Return $50,048.83 Return on Investment 91% (Five Years) 18% Per Year
  14. 15. Investment $54,800.00 Cost of Borrowing $13,700 $54,800 for five years at 5%.
  15. 16. Investment $54,800.00 So instead of costing you $54,800 in cash, it can actually cost you $13,700.
  16. 17. Investment $54,800 $13,700
  17. 18. Investment $54,800 $13,700 That’s like getting a real estate investment on sale for 75% off! You could buy 4 properties for the same amount of cash. Assuming you can borrow $250,000 (or so) for the down payments, closing costs, and renovations. And find 4 properties just like this one.
  18. 19. Investment $54,800 $13,700 But the real point is:
  19. 20. Investment $54,800 $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% (Per Year)
  20. 21. Investment $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year You find me a stock or mutual fund that will do 73% a year on the conservative side.
  21. 22. Investment $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year This projection uses 5% per year as an estimated increase in property values. The average in Edmonton since 1962 is 7.91% per year. Imagine what one year with a 10% increase would do….
  22. 23. <ul><li>Basic Rules of This Presentation: </li></ul><ul><li>This presentation, as well as the calculations, estimations and projections contained within it, have been created for the purpose of communicating the way I present information, and not the information itself. </li></ul><ul><li>Projections are calculated using simple math, and not compounded. </li></ul><ul><li>Every reasonable effort has been made to make accurate calculations. I am not immune to making mistakes when playing with rather large spreadsheets. The numbers and the estimated rates of change are not to be taken as a guarantee or promise of return. All real estate investments are speculative and you MUST do you own due diligence. </li></ul><ul><li>This is not a solicitation. This presentation is only for information purposes, intended to illustrate how I communicate. </li></ul><ul><li>Please see my Legal Disclaimer . </li></ul>
  23. 24. Credits: From Stock Exchange (click to link) Taken by me, circa August 2005. For more real estate investor resources, check out my Real Estate and Property Management Blog
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×