The Quick Proforma is a new tool that is designed to help you quickly prospect properties and view additional data insights. It is also a great resources to efficiently valuate multiple deals.
Research and underwrite properties in minutes!
Setup
Depending on the type of asset class you picked, the quick proforma will automatically choose the corresponding asset type.
Next you will choose the analysis type, acquisition or development.
- Analysis Dates: Select our preset 5/6 year or 10/11 year hold analysis dates.
- Actual: Choose this option if you want to enter specific start and end dates.
- Relative: Choose this option if you want a specific start date and the analysis period in months.
Inflation: Inflation is the increase in prices over a certain period of time, such as rising home prices, construction costs, and rents. It is important to include inflation in your underwriting. For example, if inflation is rising at 4% a year and you do not have annual rent increases your property is underperforming and losing value.
Exit Cap Rate: The rate of return to capitalize the cashflows included in calculating the sale of the property. It is used to estimate the resale value at the end of analysis period. Example: With $100,000 in net operating income capitalized at a 10% capitalization rate, the sale price will be $1,000,000.
Present Value Discount Rate: Enter the rate of return that is expected on an annual basis to discount all future cash flows and sale proceeds by to calculate the present value. Example: If you buy a property today with the hope to sell it for $110K in one year from today, and you require a rate of return (present value discount rate) of 10%, you could pay up to $100K for it today and obtain the 10% return one year from the purchase.
Buyer Paid Commission: The percent commission of the purchase price paid to the buyer’s broker.
Exit Sales Commission / Closing Fees: The percentage fee of the sale price that will be paid to a 3rd Party on selling the property.
Data Insights
Based on the field of view on the map, Rockval will display property types that match the chosen property type. Zoom out to find more property comps in the area. To drill down on your comps, click the filter button in the top right.
Depending on the input, different data ranges will be available.
Revenue / Expense / CapEx
Revenue: This is where you will enter any miscellaneous revenue that the property generates. Examples: Billboard, Pet Rent, Storage, Parking
Expenses: Operating expenses include all of the costs associated with operating the property. These include property management fees, insurance, utilities, property taxes, repairs, and maintenance.
CapEx: Also know as Capital Expenditures are costs used to renovate, maintain, or invest the property outside of the normal expenses. Example: New roof, parking lot, tenant technology, unit renovations.
Per Type
Changing the Per Type amount will allow you to change how you compute expenses, revenue, and capital expenditures.
- Net SF - The amount of rentable or usable area on a property or space
- Amount - Enter the actual amount of the line item
- Unit - Computes the amount on a per unit basis
Per Time
Choose the frequency to distribute the line item, ie. if it is $100/year is that incurred in equal monthly increments or is this once a year.
Rent Roll
Enter in a high level rent roll assumption. Utilizing the data insight bar on the right. View similar properties to base rents, expense reimbursements, tenant improvements and free rent.
Cost & Financing
Select how you would like to enter the purchase price for the property. Enter in an amount, direct capitalization, or percent of present value derived from the present value rate entered in the Deal Assumptions.
Note Amount Type: Select how to enter the note amount. Enter as an exact dollar amount, percentage of present value, or a percentage of the total inputted cost.
Contact a team member at support@rockval.com
