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Property InformationSources & UsesScenario #2'Scenarios' tab
Offering Memo
My Version
Target Case
OfferBank #1Bank #2
Placeholder
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Name
Sample Property
Scenario #1Scenario #2Scenario #3Scenario #4Scenario #5Scenario #6Scenario #7
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Street Address
100 Sample Street
Sourcestotal $$/unit
Avg. Monthly Gross Potential Rent (GPR) / Unit
$1,662$1,712$1,762$1,637$1,637$1,637$1,637
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CityPhoenixEquity32.2%$3,207,500 $64,150
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StateAZDebt67.8%$6,750,000 $135,000 Net Rental Income$917,424$945,024$972,624$903,624$903,624$903,624$903,624
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Zip Code12345Total Sources$9,957,500 $199,150 (+) Other Income$51,000$51,000$51,000$51,000$51,000$51,000$51,000
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CountyMaricopaEffective Gross Income (EGI)$968,424$996,024$1,023,624$954,624$954,624$954,624$954,624
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Tax Parcel #123-45-6789Usestotal $$/unit(-) Operating Expenses$363,421$364,801$366,181$362,731$477,312$362,731$362,731
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Year Built1980
Purchase/Sale Price
$9,000,000 $180,000 Net Operating Income$605,003$631,223$657,443$591,893$477,312$591,893$591,893
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# of Units 50
Loan Origination Fees (% of loan)
1.0%$67,500 $1,350 (-) Debt Service$428,576$472,694$472,694$472,694$441,633$453,260$367,927
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Net Rentable Sqft 52,700 Due Diligence$15,000 $300 Net Cash Flow from Operations$176,427$158,529$184,749$119,199$35,679$138,633$223,966
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Legal$25,000 $500
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Purchase/Sale Price$180,000/unit$9,000,000
Other Closing Costs (% of PP)
0.75%$67,500 $1,350 Loan-to-Value % (LTV)68.0%75.0%75.0%75.0%65.0%70.0%60.0%
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Total CapEx$682,500 $13,650 Loan Amount $$6,120,000$6,750,000$6,750,000$6,750,000$5,850,000$6,300,000$5,400,000
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Scenario Selectiondropdown -->Scenario #2
Working Capital/Reserves
$100,000 $2,000 Interest Rate5.75%5.75%5.75%5.75%5.75%6.00%5.50%
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Total Uses$9,957,500 $199,150 Amortization (years)30 years30 years30 years30 years25 years30 years30 years
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Loan Sizing + TermsScenario #2
YEAR 1 PROFORMA SUMMARY
Scenario #2Total Equity Required$3,831,200$3,207,500$3,207,500$3,207,500$4,098,500$3,716,000$4,571,000
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YEAR 1
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Loan-to-Value % (LTV)75.0%PROFORMAExpense Ratio37.5%36.6%35.8%38.0%50.0%38.0%38.0%
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Loan Amount $$6,750,000Net Rental Income$945,024Debt Service Coverage Ratio (DSCR)1.41x1.34x1.39x1.25x1.08x1.31x1.61x
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Loan Fees/Cost (% of Loan)1.0%$67,500(+) Other Income$51,000Cap Rate at Purchase Price6.72%7.01%7.30%6.58%5.30%6.58%6.58%
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Effective Gross Income (EGI)
$996,024Yield on Cost6.08%6.34%6.60%5.94%4.79%5.94%5.94%
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Interest Rate5.75%
(-) Operating Expenses
$364,80136.6%Cash-on-Cash Return4.61%4.94%5.76%3.72%0.87%3.73%4.90%
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Amortization (years)30 years
Net Operating Income
$631,223
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Amortizing (P&I) -- Monthly$39,391(-) Debt Service$472,694
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Amortizing (P&I) -- Annual$472,694
Net Cash Flow from Operations
$158,529
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CapEx Summary
Debt Service Coverage Ratio (DSCR)
1.34x
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see 'CapEx Analysis' tab
Cap Rate at Purchase Price
7.01%
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total $Yield on Cost6.34%
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Deferred Maintenance$150,000
Cash-on-Cash Return
4.94%
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Other Exterior CapEx$200,000
step rate for Matrix
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Subtotal (deferred maintenance + exterior)
$350,000
Property Valuation Matrix @ Cap Rate
0.25%
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Interior CapEx$300,000 6.00%$10,520,380
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Subtotal (excluding contingency)
$650,000 6.25%$10,099,565
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(+) contingency5.0%$32,500 6.50%$9,711,120
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TOTAL$682,500 6.75%$9,351,449
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7.00%$9,017,469
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RE Taxes
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see 'RE Taxes' tab
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total $
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Current Taxes (latest actuals)$68,000
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Proforma Taxes (Year 1)$90,000
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% Increase32.4%
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