The Sale-Leaseback (SLB) Advantage: This document provides an overview on the advantages of a real estate Sale-Leaseback Transaction. Information could be of interest to middle-market companies, private equity firms with portfolio companies and/or owner-users of real estate.
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.
Estimating the value of a real estate is a key element to real estate financing, listing for sale, property insurance, investment analysis, and taxation. For most instances, figuring the asking price of a property is the typical application of a real estate valuation. However, the methods and basic concepts remain the same for any application.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
Real Estate Investment Business Plan PowerPoint Presentation Slides SlideTeam
If you are into the real estate business, then it is very likely you will need to present investment plan to target buyers. That is why our team of expert designs and researchers have come up with 61 slides Real Estate Investment Business Plan PowerPoint Presentation Slides. This PowerPoint presentation on real estate business will surely save you a lot of time and resources. As compared to making a PPT presentation from scratch. This real estate PowerPoint presentation example has various slides like real estate snapshot, executive summary, market activity, real estate trends and demand, real estate opportunities, market analysis, market outlook, real estate sales growth, real estate home sales, real estate price index, real estate mortgage rates, real estate REO, and many more. This PPT on real estate business plan will provide necessary information to land developers and people working in the real estate business. This predesigned property investment PowerPoint presentation is fully editable and can be customized according to your needs. You can use this PowerPoint presentation on real estate business for topics like real property, residential premises, residential trends, land development, premises investing, real estate economics, land appraisal, estate industry overview etc. Close your business deal with our Real Estate Investment Business Plan PowerPoint Presentation Slides. Hurry up! Download this real estate PowerPoint presentation and get those potential buyers. Bring the core concept into clear focus with our Real Estate Investment Business Plan PowerPoint Presentation Slides. Identify important elements of the doctrine.
The Sale-Leaseback (SLB) Advantage: This document provides an overview on the advantages of a real estate Sale-Leaseback Transaction. Information could be of interest to middle-market companies, private equity firms with portfolio companies and/or owner-users of real estate.
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.
Estimating the value of a real estate is a key element to real estate financing, listing for sale, property insurance, investment analysis, and taxation. For most instances, figuring the asking price of a property is the typical application of a real estate valuation. However, the methods and basic concepts remain the same for any application.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
Real Estate Investment Business Plan PowerPoint Presentation Slides SlideTeam
If you are into the real estate business, then it is very likely you will need to present investment plan to target buyers. That is why our team of expert designs and researchers have come up with 61 slides Real Estate Investment Business Plan PowerPoint Presentation Slides. This PowerPoint presentation on real estate business will surely save you a lot of time and resources. As compared to making a PPT presentation from scratch. This real estate PowerPoint presentation example has various slides like real estate snapshot, executive summary, market activity, real estate trends and demand, real estate opportunities, market analysis, market outlook, real estate sales growth, real estate home sales, real estate price index, real estate mortgage rates, real estate REO, and many more. This PPT on real estate business plan will provide necessary information to land developers and people working in the real estate business. This predesigned property investment PowerPoint presentation is fully editable and can be customized according to your needs. You can use this PowerPoint presentation on real estate business for topics like real property, residential premises, residential trends, land development, premises investing, real estate economics, land appraisal, estate industry overview etc. Close your business deal with our Real Estate Investment Business Plan PowerPoint Presentation Slides. Hurry up! Download this real estate PowerPoint presentation and get those potential buyers. Bring the core concept into clear focus with our Real Estate Investment Business Plan PowerPoint Presentation Slides. Identify important elements of the doctrine.
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.
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.
Before you start writing your real estate business plan, spend as much time as you can to reading through some samples of real estate business plans. Not only will that give you a good idea of what it is you’re aiming for, but it will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their future plans.
We have created a sample real estate business plan example for you to get a good idea about how a perfect real estate business plan should look like and what details you should include in your business plan.
Source: https://upmetrics.co/template/real-estate-business-plan-example
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
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.
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
Real Estate Investment Analysis PowerPoint Presentation SlidesSlideTeam
Are you looking for a real estate investment analysis PowerPoint presentation to share your amazing business plan for real estate? No problem! To help you out here we are presenting a readymade slide presentation to highlight the factors to consider when investing in real estate. Furthermore, before launching your next property business plan using presentation templates included in this PPT example you can illustrate real estate location analysis. This PowerPoint slide deck also supports to underline significant features of a business plan financials so as to convince potential purchasers to go for the deal. Going further, this sample of PPT presentation assists property investment companies to introduce themselves as well as to unveil curtain over their services. To make our PPT model more precise we have included exclusive presentation slides like real estate – market size, real estate market activity, real estate trends, real estate – sales growth, real estate rents and many more. In short, with our pre designed property investment analysis PowerPoint show you are one step closure in turning your analysis into an amazing visual communication. Influence their impressions with our Real Estate Investment Analysis PowerPoint Presentation Slides. Get folks feeling good about the days to come.
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.
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.
Before you start writing your real estate business plan, spend as much time as you can to reading through some samples of real estate business plans. Not only will that give you a good idea of what it is you’re aiming for, but it will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their future plans.
We have created a sample real estate business plan example for you to get a good idea about how a perfect real estate business plan should look like and what details you should include in your business plan.
Source: https://upmetrics.co/template/real-estate-business-plan-example
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
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.
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
Real Estate Investment Analysis PowerPoint Presentation SlidesSlideTeam
Are you looking for a real estate investment analysis PowerPoint presentation to share your amazing business plan for real estate? No problem! To help you out here we are presenting a readymade slide presentation to highlight the factors to consider when investing in real estate. Furthermore, before launching your next property business plan using presentation templates included in this PPT example you can illustrate real estate location analysis. This PowerPoint slide deck also supports to underline significant features of a business plan financials so as to convince potential purchasers to go for the deal. Going further, this sample of PPT presentation assists property investment companies to introduce themselves as well as to unveil curtain over their services. To make our PPT model more precise we have included exclusive presentation slides like real estate – market size, real estate market activity, real estate trends, real estate – sales growth, real estate rents and many more. In short, with our pre designed property investment analysis PowerPoint show you are one step closure in turning your analysis into an amazing visual communication. Influence their impressions with our Real Estate Investment Analysis PowerPoint Presentation Slides. Get folks feeling good about the days to come.
Adams-Hansen & Associates' Returns as of 12/31/2016Brook Hansen
Here are the returns as of 12/31/2016 for Adams-Hansen & Associates. AHA are Fee only advisers providing asset management and solving financial problems for Unions, Business Owners, Individuals, and 401(k)s. We welcome you to call us at 952-224-9085.
Here are the 2018 new Returns from AHA.
Adams-Hansen & Associates are Fee only advisers providing asset management and solving financial problems for Unions, Business Owners, Individuals, and 401(k)s.
Here are the new AHA Returns! Adams-Hansen are Fee only advisers providing asset management and solving financial problems for Unions, Business Owners, Individuals, and 401(k)s.
We welcome you to call us at 952-224-9085!
Here are the new returns for Adams-Hansen as of March 31st, 2018. Feel free to check them out!
Adams-Hansen & Associates is a Registered Investment Advisor registered with the state of Minnesota. Adams-Hansen & Associates and its Investment Advisor Representatives do not render tax, legal, or accounting advice.
Bmds 2018 03 31
Information to help you and your family manage your inheritance questions, plan your retirement and ensure you have sustainable cash flow to see you through your twilight years.
Stuart Reid, Executive Director, Food Co-op Initiative (FCI), presented to start-up staff, steering committee, and Board members at NFCA's Sixth Annual Meeting. This presentation reviews some of the most important financial tools that every start-up food co-op needs. This includes Sources & Uses budget, financial pro formas, and market studies, and focus on how to understand these tools and use the information to strengthen your co-op's plans.
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaFarmland Bazaar
Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
Total Environment Tangled Up In The Green - Residential Plots Where Nature an...JagadishKR1
Embark on a journey where lush landscapes and contemporary living converge at Total Environment's Tangled Up In The Green Residential Plots in Devanahalli, Bangalore. Surrounded by verdant expanses, these plots offer an idyllic setting for your dream home. Immerse yourself in the serenity of nature while enjoying the finest amenities and design, where every moment is a harmonious blend of luxury and tranquility.
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Rams Garden Bahcelievler - Istanbul - ListingTurkeyListing Turkey
Implemented by Rams Global in Bahcelievler, the Rams Garden Bahcelievler Apartments includes 796 residences of different types from 2+1 to 5+1.
Next to the project, which will have 33 thousand square meters of green area, there will be 42 thousand 300 square meters of woodland. There will also be a 210-meter-long pond in the landscape of the project. There are 94.5 square meters of green space per flat.
Rams Garden Bahcelievler Apartments, which has 8 times more green space than the average of Istanbul with its 33 thousand square meters of green area located within a total of 75 thousand square meters, offers various housing options from 2+1 to 5+1.RAMS Garden has brought a lifeline to the construction industry.
Rams Global, which has signed projects in many places from Dubai to Phuket and delivered more than 20 thousand residences, is now starting new projects in Istanbul.
Rams Garden Bahcelievler is located 9 minutes from Metroport AVM, 5 minutes from Marmara Forum AVM, 12 minutes from Kazlıçeşme beach, 9 minutes from Yıldız Technical University, 7 minutes from Istinye University, 9 minutes from Ramada Hotel and Medicana Hospital.
https://listingturkey.com/property/rams-garden-bahcelievler-apartments/
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Dynamics 365 Bid Management for Construction ProjectsDynamic Netsoft
This PDF provides a straightforward guide to using Dynamics 365 for efficient bid management in construction projects. Learn how to streamline processes, improve accuracy, and enhance productivity with practical tips and step-by-step instructions.
https://dnetsoft.com/dynamics-365-bid-management-software
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
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Revenue Keys- Begur Village Survey-Sketchrevenuekeys
Find Land Survey Number View A Begur village Begur Hobli Bangalore The Revenue Department of Karnataka By The Survey Sketch Made Citizen Simple Easy to Find Survey Number,s
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
1. A primer on
this widely
used, but
seldom
understood,
real estate
metric
UNDERSTANDING
CAPITALIZATION RATES
OR CAP RATES
2. WHAT IS A CAP RATE ?
Ploutus Advisors, LLC 1
¡ Rate of interest or return that is considered as “reasonable”
return on investment
¡ Rate used to derive an estimate of property value based on
net income
¡ Preliminary test for reasonableness of purchase price of
property
¡ Inverse of a multiple
¡ Used in Direct Capitalization as follows:
R = NOI1 ÷ V
where, R is Capitalization Rate or Cap Rate
NOI1 is Net Operating Income for the first year of holding period
V is Value of property
3. CAP RATE VS. DISCOUNT RATE
Ploutus Advisors, LLC 2
¡ Cap Rate is related to a Discount Rate
§ Discount rate, investment yield, or internal rate of return is the risk
adjusted required return for an investment when compared with
returns earned on competing investments
¡ Relationship is as follows:
R = r − g OR r = R + g
where, R is Capitalization Rate or Cap Rate
r is Discount Rate
g is Annual Growth in Income
Cap Rates will equal Yield Rates only when the
expected annual growth in income is Zero
4. RISK AND CAP RATES
Ploutus Advisors, LLC 3
HIGH
Property
Value
Low
Cap
Rate
Low
Risk
LOW
Property
Value
High
Cap
Rate
High
Risk
Return on Investment is inversely correlated
to probability of Return of Investment
5. METHODS FOR ESTIMATING A CAP RATE
Ploutus Advisors, LLC 4
Sales
Comparable
Approach
Gettel
Approach
Band of
Investment
Approach
Akerson
Approach
Ellwood
Approach
6. SALES COMPARABLE APPROACH
Ploutus Advisors, LLC 5
Cap Rate: Calculated as NOI ÷ Price
1 Subject Cap Rate: Comparable properties must be carefully analyzed before choosing the appropriate
Cap Rate so as to accurately reflect overall similarity
Subject Sales Comparables
Property 1 Property 2 Property 3
Price $10,032,103 $10,000,000 $9,750,000 $10,250,000
NOI $625,000 $625,000 $600,000 $645,000
Cap Rate 6.23% 1
6.25% 6.15% 6.29%
Use only when sufficient comparable
sales data is available
7. RONALD GETTEL APPROACH
Ploutus Advisors, LLC 6
Takes into account lender’s
perspective
Loan-to-Value 70.00%
x
Debt Service Coverage Ratio 1.25x
x
Loan Constant (Debt Service ÷ Loan Amount) 7.92%
Loan Annual Interest Rate 5.00%
Amortization in Years 20
Cap Rate 6.93%
8. BAND OF INVESTMENT APPROACH
Ploutus Advisors, LLC 7
Equity Dividend Rate (EDR): Current Before-Tax Cash Flow ÷ Invested Equity
1 EDR: Also referred to as current return on equity (ROE) or cash return on invested equity for equity investor
Takes into account investment
criteria of debt and equity
Item Rate Weight Contribution
to Cap Rate
Equity Equity Dividend Rate Equity-to-Value
8.00% 30.00% 2.40%
Mortgage Loan Constant Loan-to-Value +
7.92% 70.00% 5.54%
Loan Annual Interest Rate 5.00%
Amortization in Years 20
Loan Constant = Debt Service ÷ Loan Amount 7.92%
Cap Rate 7.94%
9. CHARLES AKERSON APPROACH
Ploutus Advisors, LLC 8
Takesintoaccountinvestmentcriteriaof
debtandequityandaccountsforloan
repaymentandchangeinpropertyvalue
Item Rate Weight Contribution
to Cap Rate
Equity Equity Dividend Rate Equity-to-Value
8.00% 30.00% 2.40%
Mortgage Loan Constant Loan-to-Value +
7.92% 70.00% 5.54%
Loan Annual Interest Rate 5.00%
Amortization Period in Years 20
Loan Constant 7.92%
Cap Rate - Band of Investment Approach 7.94% (a)
Adjustment 1: Equity Build-Up or Loan Paid-Off 1.83%
Loan-to-Value 70.00%
Holding Period in Years 10
+
Sinking Fund Factor - SFF 6.90%
Loan Paid-Off Over Holding Period 37.78%
Adjustment 2: Change in Property Value 0.69%
Appreciation Over Period 10.00%
SFF 6.90%
Total Adjustment 2.52% (b)
Cap Rate 5.43% (a) - (b)
10. L. W. ELLWOOD APPROACH
Ploutus Advisors, LLC 9
Item Key General Factor Used
K J
Equity Dividend Rate r 8.00%
Loan-to-Value mr 70.00%
Amortization Period in Years t 20
Loan Annual Interest Rate i 5.00%
Loan Constant mc = -PMT(i,t) 7.92%
Holding Period in Years n 10
Sinking Fund Factor SFF = r/((1+r)^n-1) 0.0690
% Paid Off Over Holding Period P = (mc-i)/(-PMT(i,n)-i) 37.78%
PV Factor Ordinary Level Annuity An = (1-(1+r)^(-n))/r 6.710
FV Factor Sn = (1+r)^n 2.159
Change in Value Over Holding Period Dv 5.00%
Constant Change in Income Per Year g 2.00%
Change in Income Over Holding Period Di 5.00%
K Factor K = (1-((1+g)^n/Sn))/((r-g)*An) 1.081
J Factor J = SFF*(n/(1-(1/(1+r)^n))-(1/r)) 0.423
Cap Rate - K Factor Cap (K) = (r-mr*(r+P*SFF-mc)-Dv*SFF)/K 5.34%
Cap Rate - J Factor Cap (J) = (r-mr*(r+P*SFF-mc)-Dv*SFF)/(1+Di*J) 5.65%
Ellwood formula was later restated
as Akerson’s approach
KFactor-Factorusedtoconvertstream
ofincomechangingatconstantratioor
compoundingrateintolevelequivalent
payments
JFactor-Factorusedtoconvertvariable
streamofincomeintolevelequivalent
payments
11. CONTACT US
Ploutus Advisors, LLC 10
Disclaimer: The information contained herein may be subject to errors, omissions, changes in assumptions and, other factors. We do not provide
any guarantees, express or implied, and/or make any representations as to the accuracy of the assumptions used and/or other information
contained herein. All information contained herein is only for purposes of illustration, and should be independently verified by the user. The
analysis represents our interpretation and is NOT intended to replace information received from tax and/or accounting professionals. The user is
advised to conduct their own due diligence and consult with their advisors prior to making any decision.
For real estate consulting and
advisory, please contact:
Mr. Adnan Tapia
Email: atapia@ploutusadvisors.com
Tel: +1.424.274.3561
Ploutus Advisors, LLC
1875 Century Park East, Suite 700
Century City
CA 90067
Adnan is a Principal at Ploutus Advisors, LLC; a boutique real estate
investment and advisory firm based in Los Angeles, California.
Over a period of 18 years, Adnan has worked on 16+ million square
feet or US$2.5 billion worth of US and India focused real estate
transactions across several product types (office, industrial, retail,
residential, hospitality, mixed-use, land) and life cycles in areas such
as real estate private equity, financial consulting, acquisitions and
development.
Adnan graduated with a MBA in Banking and Finance from Case
Western Reserve University, Ohio, and was nominated to The Honor
Society of Beta Gamma Sigma. He also holds a Master in
Engineering from Cornell University, New York, and Bachelor in Civil
Engineering from University of Pune, India. In addition, he holds a
California Real Estate Broker’s license and is a member of ULI,
NAIOP and the Cornell Real Estate Council.