Cash Flow
The Cash Flow Forecast displays the results of a detailed process by which all cost and income items are spread across the months (or quarters or years) of the project. Up to 15 product types with separate sales prices may be included in the product mix. You can also describe up to 30 user-defined expenses and 9 miscellaneous revenue items such as reimbursements and rebates. Each of the 30 user-defined expenses can also be “exploded” into 150 detailed expenses for maximum control and accuracy if needed. Much flexibility is provided in describing the disbursement of expenses from detailing it period-by-period, by percentages, on closings, and spreading over a period of time.
The Cash Flow Forecast clearly displays the project sequence-of-events and cash flows for sales revenue and all cost categories. The net cash flow before financing is then displayed and becomes the basis for the pre-financing discounted cash flow analysis consisting of net present value and internal rate of return. The report also solves for the Residual Land value based upon a user-desired Developer’s Profit margin. This is an extremely valuable tool when negotiating for the land. Back
Loan Flow
Land-PIE performs detailed analyses for any combination of a purchase note for the acquisition of the land, an acquisition & development loan for the completion of the finished lots, and equity financing to cover the net funding requirements. A miscellaneous loan can also be described and used for things as Land Seller financing, bonds or an interim loan.
You can activate any or all of the loan categories as appropriate for the project. The amount of each loan may be determined as an input loan amount, as a percentage of costs assigned to the loan, or as a percent of sales. Each loan is subject to a separate loan fee percentage and interest rate. The interest rate may be a stated rate or may fluctuate as a stated number of points over a prediction for the prime rate. Interest reserve amounts may be stated for each loan. The interest reserve will be withheld from drawable funds and will be used to cover interest costs until the reserve is depleted. Back
Equity Participation
Land-PIE automatically calculates equity to cover unfunded cash requirements either as a wholly owned or a joint venture project. Equity participants can be paid Preferred Returns and profits can be disbursed by changing percentages and based upon the attainment of targeted IRRs. If desired, you can even retain income to cover future equity requirements to manage equity needed. Back
Profit & Loss, Balance Sheet
The Profit & Loss Forecast produces a period-by-period income statement for the project based on generally accepted accounting principles. Commissions & Closing Costs and other user-defined expenses are expensed directly as incurred at closes of escrow. Balance sheet assets include cash as well as capitalized cost balances. Liabilities and capital include all loan balances, accrued property tax, net cash invested and cumulative profit. Back
Parcel Type Profitability
The Budget Forecast/Analysis presents a separate column for each Parcel Type in the product mix, with additional columns to display each line item as Grand Total, Per Unit Average, Per Acre and Percent of Sales and Costs.
Land-PIE calculates costs for each budgeted cash flow line item and allocates them to each parcel type on a per-unit basis. The default allocation method is based on a relative sales value, but alternative allocation methods of relative average or unit acreage may be triggered separately for each line item, if desired. Back
Budget Variance
The Budget Variance report compares a “budget” file with an update/projection file, which contains a combination of historical or actual values and planning assumptions. The report compares project-to-date and project-to-completion on a percentage and absolute dollar basis. The report is vital for tracking the performance of a project and planning for future changes. Back
Consolidated Reports
Land-PIE performs a time-phase consolidation of any number of primary Cash Flow / Loan Flow / P & L/ Balance Sheet reports in a single step. Consolidated reports may also be brought into subsequent consolidations, so the number of reports to be combined is unlimited. Although the primary Land-PIE report handles multiple-phase projects, it may be desirable to perform separate analyses for specific segments of the project, followed by consolidating the results for each. This may be the case if the project involves components with totally different parcel types, or if the financing for components or phases is separate and unique, requiring separate analysis. Back
Detailed Planning
Although flexibility for development planning is part of the primary Land-PIE Cash Flow process, a stand-alone Detailed Planning option is available as part of the system for describing the expenses in much more detail. This menu option provides up to 30 separate major expenses with up to 150 detailed expenses within each one. Separate expense flow schedules can be displayed and the sub-total of each set of expenses is automatically “passed” to the Primary Report module. Back
Primary Report
The Primary report consists of the Cashflow, Loanflow, Equity Participation, Profit and Loss and the Balance Sheet. This report can be displayed in a combination of user-defined months, quarters and years. Therefore, even if a project is projected out monthly for five or six years, you can have your report display a specific number of months, quarters and years all on the same report. The user can also very easily and quickly specify various sections of the Primary Report to display, thereby customizing their own report format. Back
Executive Summary Report
The Executive Summary Report is a professional looking one-page report that itemizes the essential factors of the project. The report details the parcel revenues, financing parameters, equity participations and cashflow ratios. The report is ideal for management presentations, or for potential lenders and investors. Back
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