The document discusses analyzing value-added commercial real estate investments from both a debt and equity perspective. Value is increased by raising revenue through improving occupancy, lease rates, and tenant quality or lowering expenses. Key metrics for evaluating deals include increasing cash-on-cash returns, debt service coverage ratios, and gross profits to account for risk and time to complete improvements. Exit strategies like refinancing or sale require analyzing stabilized income and market conditions.
This document provides a detailed overview of the financial analysis and underwriting process for a typical real estate development project, and highlights important features such as Performance Metrics, Capitalization, Sources & Uses, Development Budget, Annual & Quarterly Cash Flows / Proforma, Monte Carlo Simulation, Waterfall Structure, and more.
This document provides an overview on real estate development and financial feasibility.
Topics Covered:
Development - Process, Ecosystem, Model, Flowchart, Risk vs Value, Development Risk, Development Cycle, Key Categories of Tasks
Economic Feasibility - Financial, Development Budget, Static Analysis, Loan-to-Cost, Debt Cover & Default Ratio Approaches, Detailed Proforma & Analysis
This document provides a detailed overview of the financial analysis and underwriting process for a typical real estate development project, and highlights important features such as Performance Metrics, Capitalization, Sources & Uses, Development Budget, Annual & Quarterly Cash Flows / Proforma, Monte Carlo Simulation, Waterfall Structure, and more.
This document provides an overview on real estate development and financial feasibility.
Topics Covered:
Development - Process, Ecosystem, Model, Flowchart, Risk vs Value, Development Risk, Development Cycle, Key Categories of Tasks
Economic Feasibility - Financial, Development Budget, Static Analysis, Loan-to-Cost, Debt Cover & Default Ratio Approaches, Detailed Proforma & Analysis
This real estate financial consulting book lists / exhibits some of the advisory work we typically do.
• Evaluation of Lease, Sublease, Purchase, or Sale-Leaseback
• Occupancy Cost Analysis
• Lease Comparison Analysis
• Space Consolidation Scenarios
• Cash and GAAP Perspectives
• Impact of Purchase or Lease Transactions on Financial Statements
• Comparison of Portfolio Value vs. Outstanding Obligation
• Portfolio Analysis vs. Business Strategy
• Own vs. Lease Decision
• Operating vs. Capital Lease
• Evaluation and Assessment of Investment Opportunities
• Valuation of Individual Assets or Real Estate Portfolios
• Development Analysis and Project Financial Feasibility
• Optimal Holding Period Analysis
• Benchmarking Based on Key Measurement Metrics
• Detailed Sensitivity or What If Analysis
• Review and Preparation of Lease Abstracts
• Preparation of Detailed Cash Flows
• Market Research
What You Really Need to Know about Commercial Real Estate UnderwritingColleen Beck-Domanico
Prudent real estate underwriting uses quantitative analysis. However, real estate math isn't just a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments feed into your estimates of property cash flow, coverage, and value that come from quantitative analysis. Your analysis should be completed in the context of the qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will jeopardize repayment prospects and bank portfolio quality. This presentation looks at quantitative analysis and integrating qualitative factors; underwriting guidelines; regulatory guidance; and value and cash flow analyses.
Real Estate Bookkeeping & Accounting Services: Maximize Business ProfitsCogneesol
A presentation explaining the world-class real estate bookkeeping and accounting services, that helps to maximize profits of business owners in real estate industry.
How to Package a Loan Request for Construction, Rehab, and Commercial LoansBeau Eckstein
SFR Ventures Inc. requires that a Financing Request Package accompany all loan requests. The suggested outline included in this packet is very comprehensive and may request information that is not relevant to a particular loan request. This template has been utilized by the principals of SFR Ventures Inc. to effectively raise $400M+ in debt and equity for various real estate investments over the years. This template focuses primarily on residential rehab, construction, and development loans and provides a consistent process for borrowers to streamline the financing process and accelerate the funding timeline to meet the closing deadlines. Timely submission of a completed Financing Request Package can mean funding in as little as 5–7 business days.
Please be advised, SFR Ventures Inc. receives a high volume of loan requests. We aim to review and respond to loan requests within 48 hours of receiving the Financing Request Package. SFR Ventures Inc. requires certain criteria for a loan request to be considered. If the following criteria are not met, your loan request will not be reviewed:
• Borrower must have real estate experience with a proven track record
• Borrower is required to have a minimum of 20% equity into the deal
• The loan-to-value (LTV) may not exceed 70%
About SFR Ventures Inc.
SFR Ventures Inc. seeks to establish long-term relationships with experienced real estate investors, owner operators, developers, and brokers that are built upon trust, client service, and executional efficiency.
Please submit your Financing Request Package or any specific questions related to your particular transaction to beau@sfrventures.com
Beau Eckstein
Managing Partner
Direct: 925.852.8261
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
Real Estate Development Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed a development case with an existing office building and adjacent vacant land for development. Group created a 20-minute investor presentation analyzing the macro economy, purchase price of entire site and adjacent vacant land, and optimization of the capital structure to reduce the weighted average cost of capital for the project.
As the markets for real estate usually remain stable in many areas of in the world, opportunities continue to exist for the development of real estate projects. This lecture is designed to analyze the real estate development process primarily from the perspective of the developer. The lecture concentrates on the development of a real estate project from its conceptual ideas until the operational start-up, and from the initiation of the concept designs until the project is defined.
The lecture examines most of the phases of the development process, from idea inception through studying the various available options for the use of the lands and estimating the projects' costs and income to determine the best and optimum commercial use of the lands. This includes an overview about the development of the project's financial feasibility of real estate development, which involves the identification and evaluation of critical assumptions related to the creation, construction, and operation of economically viable commercial real estate projects.
The lecture is introductory in scope and assumes attendants have little or no experience with the development process.
An understanding of the real estate development process benefits not only potential developers, but investors, lenders, builders, public sector participants, and end-users of the products as well.
Capital structure decisions, cost of capital, weighted average cost of capita...Mohammed Jasir PV
Capital structure decisions — cost of capital — computation of cost of debt, preference shares, equity and retained earnings —weighted average cost of capital
Theories of capital structure — NI approach NOI approach -traditional — MM theory — indifference point — fair capitalization — over and under capitalization.
This real estate financial consulting book lists / exhibits some of the advisory work we typically do.
• Evaluation of Lease, Sublease, Purchase, or Sale-Leaseback
• Occupancy Cost Analysis
• Lease Comparison Analysis
• Space Consolidation Scenarios
• Cash and GAAP Perspectives
• Impact of Purchase or Lease Transactions on Financial Statements
• Comparison of Portfolio Value vs. Outstanding Obligation
• Portfolio Analysis vs. Business Strategy
• Own vs. Lease Decision
• Operating vs. Capital Lease
• Evaluation and Assessment of Investment Opportunities
• Valuation of Individual Assets or Real Estate Portfolios
• Development Analysis and Project Financial Feasibility
• Optimal Holding Period Analysis
• Benchmarking Based on Key Measurement Metrics
• Detailed Sensitivity or What If Analysis
• Review and Preparation of Lease Abstracts
• Preparation of Detailed Cash Flows
• Market Research
What You Really Need to Know about Commercial Real Estate UnderwritingColleen Beck-Domanico
Prudent real estate underwriting uses quantitative analysis. However, real estate math isn't just a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments feed into your estimates of property cash flow, coverage, and value that come from quantitative analysis. Your analysis should be completed in the context of the qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will jeopardize repayment prospects and bank portfolio quality. This presentation looks at quantitative analysis and integrating qualitative factors; underwriting guidelines; regulatory guidance; and value and cash flow analyses.
Real Estate Bookkeeping & Accounting Services: Maximize Business ProfitsCogneesol
A presentation explaining the world-class real estate bookkeeping and accounting services, that helps to maximize profits of business owners in real estate industry.
How to Package a Loan Request for Construction, Rehab, and Commercial LoansBeau Eckstein
SFR Ventures Inc. requires that a Financing Request Package accompany all loan requests. The suggested outline included in this packet is very comprehensive and may request information that is not relevant to a particular loan request. This template has been utilized by the principals of SFR Ventures Inc. to effectively raise $400M+ in debt and equity for various real estate investments over the years. This template focuses primarily on residential rehab, construction, and development loans and provides a consistent process for borrowers to streamline the financing process and accelerate the funding timeline to meet the closing deadlines. Timely submission of a completed Financing Request Package can mean funding in as little as 5–7 business days.
Please be advised, SFR Ventures Inc. receives a high volume of loan requests. We aim to review and respond to loan requests within 48 hours of receiving the Financing Request Package. SFR Ventures Inc. requires certain criteria for a loan request to be considered. If the following criteria are not met, your loan request will not be reviewed:
• Borrower must have real estate experience with a proven track record
• Borrower is required to have a minimum of 20% equity into the deal
• The loan-to-value (LTV) may not exceed 70%
About SFR Ventures Inc.
SFR Ventures Inc. seeks to establish long-term relationships with experienced real estate investors, owner operators, developers, and brokers that are built upon trust, client service, and executional efficiency.
Please submit your Financing Request Package or any specific questions related to your particular transaction to beau@sfrventures.com
Beau Eckstein
Managing Partner
Direct: 925.852.8261
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
Real Estate Development Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed a development case with an existing office building and adjacent vacant land for development. Group created a 20-minute investor presentation analyzing the macro economy, purchase price of entire site and adjacent vacant land, and optimization of the capital structure to reduce the weighted average cost of capital for the project.
As the markets for real estate usually remain stable in many areas of in the world, opportunities continue to exist for the development of real estate projects. This lecture is designed to analyze the real estate development process primarily from the perspective of the developer. The lecture concentrates on the development of a real estate project from its conceptual ideas until the operational start-up, and from the initiation of the concept designs until the project is defined.
The lecture examines most of the phases of the development process, from idea inception through studying the various available options for the use of the lands and estimating the projects' costs and income to determine the best and optimum commercial use of the lands. This includes an overview about the development of the project's financial feasibility of real estate development, which involves the identification and evaluation of critical assumptions related to the creation, construction, and operation of economically viable commercial real estate projects.
The lecture is introductory in scope and assumes attendants have little or no experience with the development process.
An understanding of the real estate development process benefits not only potential developers, but investors, lenders, builders, public sector participants, and end-users of the products as well.
Capital structure decisions, cost of capital, weighted average cost of capita...Mohammed Jasir PV
Capital structure decisions — cost of capital — computation of cost of debt, preference shares, equity and retained earnings —weighted average cost of capital
Theories of capital structure — NI approach NOI approach -traditional — MM theory — indifference point — fair capitalization — over and under capitalization.
THIS slideshare be focusing on FUNDING. If you work with (or want to work with) INVESTOR buyers, understanding the unique funding options for these buyers is a MUST.
You will learn about:
• The 3 most important things an Equity Partner looks for.
• Hard Money Loans: How to get them and how to make them work for you.
• Private Lenders and Trust Deeds
• Leverage: When it helps & when it hurts.
• How to determine what source of funding is right for your client.
This workshop series covers the 5 F's of Residential Redevelopment: Finding, Feasibility, Funding, Fixing, and Flipping. In our upcoming workshop,
How is Return on Investment ROI Calculated for Commercial Real Estate?Michael Feakins, CCIM
If you ask someone what the Return on Investment ROI is for an investment analysis, what should you expect as an answer? This quote illustrates the problem.
"In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss." (Source: Rate of Return From Wikipedia, the free encyclopedia; redirected from Return on Investment). Wikipedia lists several different calculations under the ROI term.
In commercial real estate, Return on Investment ROI normally refers to a group of one year ratios that assume the original investment is returned at the end of the year. Since most commercial real estate investments are multiple year investments, the Return on Investment (ROI) ratios only reveal part of the picture.
Trust Deed & Private Mortgage Investing by Brandon Thienesseo.presentation
The equity experts are specialized in hard money & trust deed investing. Get maximum opportunities for real estate investment & equity funding in New Mexico.
Capital Asset Pricing Model (CAPM)
A model that describes the relationship between risk and expected return. The general idea behind CAPM is that investors need to be compensated in two ways: time value of money & risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk gauge (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).
Pre-crisis perspective. Now more than ever it has relevance with the emergence of "Vulture" Hedge Funds (VHF). The VHFs are an important part of the "ecosystem", to achieve a true market equilibrium, unhampered by 'subsidies'.
10. The Capital Structure Based on Costs 20%-100% Sponsor Equity - Highest Risk - First Loss Piece - Profit Equals Difference in Cost and Value B 65%-80% 1 st Mezzanine - Current Yield/IRR: 8-12% - Typically pays current, but may accrue A 0%-65% Senior Debt - First Trust - Lower Rate/Lower Risk/Pays current - Required Yield: 6-8%