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Updated almost 7 years ago,
Seasoned Investors...what metrics/graphs do you want to see?
Hey guys and gals,
So over the past few days I've decided to put my finance and business background to good use and build a financial model from scratch, using a few ideas and pictures I've seen around the internet and on BP. My goal is to be able to put in a few numbers (purchase price, improvements, closing costs, financing info, revenue assumptions and op ex) and essentially get a full analysis on if a property is worth investing in based on the criteria I've set out for myself. Right now, my model shows this information automatically once the necessary information is entered:
LTV, Cost/PSF, Cap Rate, GRM, CoCR, ROI, DSCR, projected revenues, expenses, and the resulting Gross Rental Income, Op Ex, NOI, Annual CF, Equity Capture, Appreciate and Total Return in dollar amounts over an 10 year model and adjusting for inflation.
I also have a DSCR/COCR/ROI Sensitivty analysis page, an amortization schedule accurate up to 30 years and a criteria worksheet page that I plan to coordinate with the primary page to show conditional formatting with the resulting numbers to visually tell me what metrics work with my criteria and which ones do not.
I also have a page that will allow for pictures of the property, the property address, type and size.
I'm in the process of adding graphs and other aesthetics to make the package look a little more appealing to the eye. In terms of presenting this type of information to equity partners, lenders or just to my friends and family to show them the potential power of real estate, what do you guys suggest I include in this aesthetic portion? And also, if I missed anything with my technical analysis, I would love to hear about that as well :) currently, I plan on adding a graph to show projected COCR per year, a pie chart correlating to operating expenses and also a rolling ROI.
Sorry that this was lengthy, but I wanted to be thorough! Thanks for any help, insight or advice you can give me. Cheers!