Three separate input modules are provided for different classes or types of property. These modules permit the flexibility to easily and quickly describe the unique lease assumptions for apartment style vs. office/retail/industrial style leases for income property along with inputting assumptions for "for-sale" type units, i.e., office and/or residential condos.
Using the Apartment input modules, in addition to the standard development and construction expenses, you can describe up to 9 different apartment types, i. e., studio, one-bedroom, etc. as well as parking income. You can also describe up to 16 user-defined on-going operating expenses.
The Office/Retail/Industrial tenant input model provides both a "Global lease-up" (quick and dirty) as well as a detailed lease-by-lease input mechanism. These approaches allow you to do a quick, albeit accurate, lease-up of available tenant space to perform an easy feasibility analysis as well as a much more detailed approach to describe the unique leases of separate tenants.
The Unit Sales module allows you to describe both the actual development and construction phase expenses but also the revenue derived from the sales of these units rather than the rental income.
These three input modules can be used in various combinations to describe all units or sources of income in a mixed-use development. In this manner, you could easily and accurately describe a project that might have office and/or retail for rent units on one or several floors with "for-sale" units on other floors.
Reports
|
Cashflow Report
|
Executive Summary
|
Holding Period Analysis
|
|
Input Screens
|
|
Why Income-PIE versus a spreadsheet?
|
Spreadsheet Limitations |
Income-PIE Advantages |
|
Spreadsheets are prone to errors and time consuming. Up to 80% of the time spent in spreadsheets is "programming" formulas and checking that the numbers are right. |
Income-PIE was designed for real estate feasibility analysis pro. Our users tell us they can accomplish confidently in a few hours what used to take days and weeks with a spreadsheets and they still weren't sure the reports were accurate. |
|
There is no standard spreadsheet format for pro formas. Comparing projects of different types and sizes is extremely difficult. |
Income-PIE presents projects in a consistent cashflow format. Results are consistently calculated to allow proper benchmarking of results to compare projects and scenarios. |
|
Spreadsheets are only 2 dimensional. Time must be represented in months across the spreadsheet in columns with Revenues and Costs listed in rows. If the construction duration of the project needs to be changed from 7 to 8 months every row must be redistributed. |
Income-PIE automatically prepares timed cash flows based upon automatic and user- controlled project timing. |
|
Multi-phase projects are not easy to handle. Multiple tabs in a workbook are added up on a "Project Summary" tab. These models are difficult to follow and prone to errors. |
Income-PIE allows for multiple projects to be combined in any number of groupings. Monthly columns can be easily rolled up into any combination or months, quarters and years. |
|
Debt and equity deal structuring is very difficult to model. Equity and loan draw schedules are often not possible without hours of modeling. Profit sharing is estimated as timed cash flows are too difficult to model. Complex deals result in partners arguing over whose model is "more right" |
Income-PIE has a very powerful Debt & Equity Module. Partner contributions and profit distributions along with loans with different repayment priorities can be easily set up. Income-PIE's deal structuring component allows for waterfall profit distribution analysis with detailed cash flows per partner and loan. |
GENERAL FEATURES
Easy to use. Income-PIE is ready to use “out of the box” – no training needed. Enter your own assumptions on pre-formatted, intuitive input screens and Income-PIE does the rest. The system is available for use on stand-alone PCs or networks.
Fast. Within minutes, you can have a complete preliminary analysis of a deal. Make a few changes in sales volume, prices, expenses, and interest rates for a “what-if” analysis, and you have a new report in seconds. Put the final touches on it and present it to management, investors or a potential lender.
Flexible. Use our pre-defined templates or create and save your own for future use. You are in control – no compromises needed for Income-PIE. Nothing could be faster or easier… or more accurate.
CASH FLOW FORECAST
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.
Income-PIE's Cash Flow Forecast clearly displays the project 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.
LOAN FLOW FORECAST
Income-PIE performs detailed analyses for any combination of a construction loan for the acquisition of the land and development for the completion of the vertical units. Up to two permanent loans can be placed on the property. Equity financing can be automatically computed to cover the net funding requirements. You may 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.
Loan draws are made in accordance with the forecast of drawable cash flows assigned to the loan. It is an easy matter to override the loan draw amount or to provide a positive or negative increment to add to the calculated loan draw for any period.
EQUITY PARTICIPATION
The Equity Financing category covers net funding requirements so as to maintain a cash balance of zero (or a stated cash reserve amount) until positive cash flows are available to repay the equity balance(s) and any return(s) on equity. Any remaining cash is distributed as available. The equity funding and distributions of cash may be on the part of the Developer alone (wholly owned project) or may represent a joint venture participation between the Developer and the Investor partner. A maximum of flexibility is provided to alter the default rules that apply to the joint venture participation.
A cash flow analysis section summarizes the net cash flow before financing, and the loan fees, interest, draws, and repayments for all loans in aggregate. The report then displays net cash flow after financing, cash balance, loans outstanding, maximum equity requirement, and maximum loan exposure. A summary for each equity partner is also displayed including the net present value and internal rate of return for the cash participation.
CONSOLIDATION OF PRIMARY REPORTS
Income-PIE performs a time-phase consolidation of any number of primary Cash Flow/ Loan Flow 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 Income-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 product types, or if the financing for components or phases is separate and unique, requiring separate analysis. This feature also allows for the combination of all of selected projects to be undertaken over time.
Watch Videos
