For Hifsa (no one else bother)
onomatopoeia
Homework3Prompt.xlsxAnswer Sheet
| RENT SCHEDULE | Financing | Acquisition | Disposition | ||||||
| 4/1/2018-3/31/2020 | $505,504 | Rate | 5.00% | Acquisition Costs | $ 15,000 | Exit Cap Rate | 5.75% | ||
| 4/1/2020-3/31/2022 | $530,780 | Term | 25 | Required IRR | 13% | Commissions | 4% | ||
| 4/1/2022-3/31/2024 | $557,319 | Debt Coverage Ratio | 1.2 | Operations | Other Disp. Costs | $ 25,000 | |||
| 4/1/2024-3/31/2026 | $585,185 | Points | 1 | Reserves | $ 6,000 | ||||
| 4/1/2026-3/31/2028 | $614,444 | Unreimbursed Costs | $ 12,000 | ||||||
| 4/1/2028-3/31/2030 | $645,166 | ||||||||
| 4/1/2030-3/31/2032 | $677,424 | Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| 4/1/2032-3/31/2033 | $711,296 | Income | $ 530,780.00 | $ 530,780.00 | $ 530,780.00 | $ 557,319.00 | $ 557,319.00 | $ 585,185.00 | |
| Reserves | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | |||
| Your Name(s) | Unreimbursed Costs | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | ||
| Going IN Cap Rate | NOI | ||||||||
| Cash ON Cash | ADS | ||||||||
| Capital Multiplier | CFBT | ||||||||
| LTV | |||||||||
| IRR at List Price | Sale Price | ||||||||
| Commissions | |||||||||
| Other Disp. Costs | |||||||||
| Loan Balance | |||||||||
| Sale Proceeds | |||||||||
| CFBT | |||||||||
| PV of CFBT | Cash Flows Before Taxes go in the spaces above. | ||||||||
| Loan Amount | |||||||||
| Points | |||||||||
| Other Acq. Costs | |||||||||
| Offer Price | |||||||||
| List Price | |||||||||
| Loan | |||||||||
| Points | |||||||||
| Other Acq. Costs | |||||||||
| Initial Investment | |||||||||
| Cash Flows Before Taxes go in the spaces above. | |||||||||
| � What do you like about this investment opportunity? | Enter Repsonse Here | ||||||||
| � What concerns you about this investment opportunity? | Enter Repsonse Here | ||||||||
| � Identify one assumption that would improve the investment performance. | Enter Repsonse Here |
Enter Responses Here for the last 3 prompts.
Worksheet
Solution
| RENT SCHEDULE | Financing | Acquisition | Dispostion | ||||||||||||||||
| 4/1/2018-3/31/2020 | $505,504 | Rate | 5% | Acquisition Costs | $15,000 | Exit Cap Rate | 5.75% | ||||||||||||
| 4/1/2020-3/31/2022 | $530,780 | Term | 25 | Required IRR | 13% | Commisions | 4% | ||||||||||||
| 4/1/2022-3/31/2024 | $557,319 | Debt Coverage Ratio | 1.2 | Operations | Other Disp. Costs | $ 25,000 | |||||||||||||
| 4/1/2024-3/31/2026 | $585,185 | Points | 1 | Reserves | $ 6,000 | ||||||||||||||
| 4/1/2026-3/31/2028 | $614,444 | Unreimbursed Costs | $ 12,000 | Score | 0 | Out of 10 | |||||||||||||
| 4/1/2028-3/31/2030 | $645,166 | ||||||||||||||||||
| 4/1/2030-3/31/2032 | $677,424 | Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | Grading | |||||||||
| 4/1/2032-3/31/2033 | $711,296 | Income | $ 530,780.00 | $ 530,780.00 | $ 530,780.00 | $ 557,319.00 | $ 557,319.00 | $ 585,185.00 | Item | Value | Points | ||||||||
| Reserves | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | $ 6,000.00 | NOI 1-6 | 2 | 0 | $ 512,780.00 | $ 512,780.00 | $ 512,780.00 | $ 539,319.00 | $ 539,319.00 | $ 567,185.00 | ||||
| Your Name(s) | 0 | Unreimbursed Costs | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | ADS | 2 | 0 | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | $ - 0 | ||
| Going IN Cap Rate | 6.00% | NOI | $ 512,780.00 | $ 512,780.00 | $ 512,780.00 | $ 539,319.00 | $ 539,319.00 | $ 567,185.00 | CFBT | 2 | 0 | $ 85,463.33 | $ 85,463.33 | $ 85,463.33 | $ 112,002.33 | $ 112,002.33 | $ - 0 | ||
| Cash ON Cash | 3.38% | ADS | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | $ 427,316.67 | Sale Price | 2 | 0 | $ 9,864,086.96 | ||||||||
| Capital Multiplier | 1.79 | CFBT | 0 | $ 85,463.33 | $ 85,463.33 | $ 85,463.33 | $ 112,002.33 | $ 112,002.33 | Commission | 1 | 0 | $ 394,563.48 | |||||||
| LTV | 71.3% | Other Disp Costs | 1 | 0 | $ 25,000.00 | ||||||||||||||
| IRR at List Price | 2.60% | Sale Price | $ 9,864,086.96 | Loan Balance | 2 | 0 | $ 5,395,774.31 | ||||||||||||
| Commissions | $ 394,563.48 | Sale Proceeds | 2 | 0 | $ 4,048,749.17 | ||||||||||||||
| Other Disp. Costs | $ 25,000.00 | Total CFBT | 2 | 0 | $ 85,463.33 | $ 85,463.33 | $ 85,463.33 | $ 112,002.33 | $ 4,160,751.50 | $ - 0 | |||||||||
| Loan Balance | $ 5,395,774.31 | PV of CFBT | 2 | 0 | $ (2,528,774.32) | ||||||||||||||
| Sale Proceeds | $ 4,048,749.17 | Loan Amount | 2 | 0 | $ (6,091,400.76) | ||||||||||||||
| Points | 1 | 0 | $ (60,914.01) | ||||||||||||||||
| CFBT | $ 85,463.33 | $ 85,463.33 | $ 85,463.33 | $ 112,002.33 | $ 4,160,751.50 | Other Acq. Costs | 1 | 0 | $ (15,000.00) | ||||||||||
| PV of CFBT | $ 2,528,774.32 | Offer Price | 3 | 0 | $ (8,544,261.07) | ||||||||||||||
| Loan Amount | $ 6,091,400.76 | Initial Investment | 3 | 0 | $ (4,004,513.25) | ||||||||||||||
| Points | $ 60,914.01 | Going IN Cap Rate | 2 | 0 | 6.00% | ||||||||||||||
| Other Acq. Costs | $ 15,000.00 | Cash ON Cash | 2 | 0 | 3.38% | ||||||||||||||
| Offer Price | $ 8,544,261.07 | Capital Multiplier | 1 | 0 | 179.10% | ||||||||||||||
| LTV | 1 | 0 | 71.29% | ||||||||||||||||
| List Price | $ 10,020,000.00 | IRR at List Price | 2 | 0 | 2.60% | ||||||||||||||
| Loan | $ 6,091,400.76 | What I Like | 1 | ||||||||||||||||
| Points | $ 60,914.01 | Concerns | 1 | ||||||||||||||||
| Other Acq. Costs | $ 15,000.00 | How to Improve | 2 | ||||||||||||||||
| Initial Investment | $ (4,004,513.25) | $ 85,463.33 | $ 85,463.33 | $ 85,463.33 | $ 112,002.33 | $ 4,160,751.50 | Total Points | 40 | 0 | ||||||||||
| � What do you like about this investment opportunity? | Enter Repsonse Here | ||||||||||||||||||
| � What concerns you about this investment opportunity? | Enter Repsonse Here | ||||||||||||||||||
| � Identify one assumption that would improve the investment performance. | Enter Repsonse Here | ||||||||||||||||||
