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Infinity powerOne CRE 2 (669449305208)

1. 22 Merge pe 23 Loan Odd 1st Perio cassie sasctaveiacukeuisas Uns OE daa EEEN SFR ue OE ERG Eas eR arL qu EE Cr Peres ES MK Fu IU Snc DE dS Fo FEN SH EERU ONSE E ERU M gar QU EE OHMESEEEE 24 Loan QualifiCali OE iu euo eee sadesasc nsi 7 cks OREN ERE URERV EV CES S ENSE ESCNICIESGREYESNEENEESEVRESIEKERS rE ERES UINEVEN KNEE RERSE EM NES 25 1997 2005 Infinity Softworks Contents LOAN FREMIMNGINGE TETTE TD DOE EOD Lo KS 26 Mover titel ym elle EMU e 27 o s c 27 MOUSE A bcd M RR UNUE EM IM eceue ans pe maaan meine vate coe ssuins man cpoumnacenmn cau epaneennamemances 27 OC EEC deer 30 Natural ESA ON eee 30 ALE a cc 30 roin Moreno e 31 PRODGILY FAI SIS Penn 33 Rent Per Usable Sguare FGCU mee m cee eee ence eden eects 33 ROMU BIY e 33 Return On Investment HON sirida Ea rwcE inc E QVE ER Na CSS Rev cie ca avEE RE CUN MO ven aO Vav a REE 34 24 31 Miete X 34 Fig NN Pec M 35 Part IV Appendix 35 1 TECC SUD D
2. 11 Bre keven Occ panty Rate qe c 11 Cap Rale A ce cnS RSL RRRG X X nee 12 Cash Flow Analysis mec R 12 Cash OmM Cash e 12 CIOSING COSUS c 13 DGD COV la SF ro D n 13 Eflective Gross a C 0 SSGCSSLG M 14 ETTOCUIVG Interest Rala e 14 Employment FOIBCOBLI auusuiciessue tire EAxdE oe buxe in ena E EEEE aE Usu Eesl Dni T RxR aE 15 Egu ny Dividend Rate soca cede aaa aE aE aerea 15 ella Yield c R OA a E EEEa aa Eaei 15 PIMANGIING sisas 16 income FATS V AN AUN ec a EEEa EE EENEN 16 investment BASE siroce Eae a EEE EE EA 17 investment Value sercis Aa a REE 17 AE e e A A A 18 Bei E E axes savzuadaeuussisnsaneaqandanessunsnusentneansesemesteayane 18 Lease COMPA SON ae E E E E 18 Lease QUIAITICARIONY e S 19 Loar COMPAS OI ete EEEE EE E E E EE EE 20 Boripe tri RE A E E A E E E A E 21 nimc E E E E E E E E E tm 21 BV m le E AE P A E E E A E AE EA AN E AE E E A E 22 Eum MP
3. INFINITY SOFTWORKS CRE Pack Manual for powerOne G Products Version 2 1 O 1997 2005 Infinity Softworks www infinitysw com 4 14 2005 CRE Pack Manual Table of Contents Part Interface Overview 1 Part Il Types of Variable Data 2 Part Ill Templates 4 1 e MSL TOTO ANS RU m 4 c 6 ADSODHON occ 6 hir c M nee 6 Alternative Cash Sales cce coina cta sais a no au cuu e Rau aU dins Rx aE Runs UE QUAM a MEME ERE dU MR DON M XR E a k isa AS aAa EAA 6 Annual Property Operating Data APOD ramennen anaana anaana aana QE euo RUEd e AAAA SR EDU ANANA AAAA UNE MNT EEEE USE 7 Area RIU RANO c H 8 Alea CIPGIG usns E S SE E NF M MID DU M NE DEM M NM ME RENEEE 9 hi minr 9 hlj Mai cieg lppj Meme S 9 TCAs SOULS ccc S 10 MEI TT rior Re 10 Area Mangio m 10 28 MP nee M 11 Blended Rate cc
4. Flood Ins reserve deposits and up front payments for flood insurance Prop Taxes reserve deposits and up front payments for property taxes Closing Fee settlement or closing fees Delivry Fee fees for service delivery Title Ins title insurance fees Gov Fees fees owed to the government including service charges and deeds Other 1 3 other charges These are added to the closing costs Template Close Fees gt Loan Amt Origins Origin Fee Digcnt Fees Appraisal Cred Report Process Fee LInder write Flood Cert Tax Service Admin Fee Wire Fee Intrat Amt Hazard Ins hit InsP MI Flood In Prop Taxez Closing Fee Delivry Fee Title Ins Coy Fees Other 1 Other 2 Other 3 Adjust 1 Adjust 2 Adjust 3 em Closing Costs Options 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 x Help Adjust 1 3 adjustments to the closing costs These are subtracted from the closing amount Examples are escrow refunds and excess payments made on an old mortgage when refinancing 3 3 7 Debt Coverage Ratio Available in the Finance template category Ratio that describes the percentage of income that a lender will require a property to generate that is in addition to basic debt service Lenders refer to it as a margin of safety This is often referred to as DCR 1997 2005 Infinity Softwor
5. Costs remaining costs after selling the property kr Invest Base Template Options Help Mortgage remaining principal balance on the mortgage which needs to be Sale Price repaid Costs Taxes property or other taxes that still need to be paid Mortgage ATCF after tax cash flow for the sale of the property proceeds from the Taxes sale ATCF Add Cash additional cash equity Add Cash Invest Base investment base Invest Base Done Clear Source CCIM Course Concepts Review Reference Manual p 84 3 3 16 Investment Value Available in the Invest RE template category An estimate of the value of income producing real estate to a particular owner investor given that investor s desire for a return on equity and the investor s current mortgage position Variables r E A Invest alue E mj x Inv Val investment value E E BTCF before tax cash flow EDR required rate of return or equity dividend rate Should be expressed Inv Mal as a percentage Measures an owner s desired return on equity BTCF U Loan Bal current loan balance EDR56 0 Loan Bal 0 Template Options Help Done Clear 1997 2005 Infinity Softworks Templates 18 3 4 L This section covers templates starting with the letter l 3 4 1 Lease A E Available in the Manage RE template category Each template A through E performs various return analyses on proper
6. Clear 3 2 3 Alternative Cash Sales Available in the Invest RE template category Used to analyze cash property sale transactions 1997 2005 Infinity Softworks 7 CRE Pack Manual Variables Adjusted Basis Acq Basis basis at acquisition Cap Addins capital additions Cost Revry cost recovery or depreciation taken Partial Sale basis in partial sales Adj Basis adjusted basis Capital Gain Sale Price sale price Sales Costs costs of selling the property Prtcptn Pmt participation payments Suspnd Loss suspended losses Cap Gain capital gains or loss Ordinary Income Taxes Unamrt Pts unamortized loan points Ol Rate tax rate for ordinary income expressed as a percentage Ol Tax Liab ordinary income taxes or savings Capital Gain Taxes CG Report percentage of capital gains reported CG Rate tax rate for capital gains expressed as a percentage CG Tax Liab capital gain taxes or savings Recapture Recap recapture rate Recap Amt amount of recapture Sale Proceeds Prncpl Bal principal balance remaining on the mortgages CR Recap recapture of investment tax credits BT Proceeds sale proceeds before tax Tax On Sale total taxes on the sale AT Proceeds sale proceeds after tax Source CCIM Course Concepts Review Reference Manual Alternative Cash Sales Worksheet 3 2 4
7. concessions paid on an annual basis Commissions and tenant improvements are not considered 3 4 3 Lease Qualification MPS A MP B MP C7 MP Dr MP E MPOT A MR Trem B MPzITEm C Mev Tem D MP Trim E MUS A MUS B MUS C7 MUS Dx MUS E IR Fee A IF Fee B RRS C RRS D IRR E MER LIS A MER LS EF MER LIS C MER US D MER LIS E MER Can A MER Can B MER Can C MER Can D MER Can E Options I Lease Compare 3 xl Template Per Rate 6 A Per Rate B Per Ratet C Per Rate D Fer Rate E Help Available in the Manage RE template category Calculates common key financial ratios to assist in the tenant qualifying process Input information is found on the proposed tenant s balance sheet and income statement 1997 2005 Infinity Softworks Templates 20 Mad FF Lease Qualif E rix Income Statement A Li E O xl Revenues total property revenues Template Options Help Expenses total property expenses ear Current EBIT earnings before interest and taxes Fin State In house Annual Rent 0 Balance Sheet Cash cash on hand eMe eda Curr Assets current assets ESTEE Tot Assets total assets current and long term Curr Liab current liabilities cum Tot Debt total debt current and long term mcer Tot Equity total owner s equity eee Curr Liab Calculations Tat Debt Curr Ratio Current Ratio Does
8. 18 33 Net Proceeds 34 Net Uniform Series 18 33 NOI 12 13 15 16 31 34 NPV 18 33 Numbers 2 NUS 18 33 O Odd Days 24 Operating Expenses 7 11 12 P P amp I 27 Partial Sale 6 Participation Payments 6 Payment1 16 18 20 21 22 23 24 25 27 31 Payment Date 24 Payment Sum 23 Payment Timing 21 23 24 27 Payroll th Penalty 14 Periodic Rate 18 33 Pipeline 30 PITI 21 PMI 13 25 Points 14 16 27 1997 2005 Infinity Softworks Index Population 15 Potential Income 7 Price 2 33 Principal 6 11 23 Printing 36 Proceeds 16 After Tax 6 Before Tax 6 Profit Margin 19 Property Size 7 R H U 8 33 Rate Source 23 27 Recapture 6 Rent 30 33 Adjusted 6 Amount 31 Base 6 Income 12 Percent Sales 19 Rental Square Feet 33 Square Feet 8 31 Units 31 Usable Square Feet 33 Repair 7 Return On Investment 31 34 Revenues 19 ROI 31 34 RSF 8 S Sale Costs 6 Sale Price 6 17 34 Side 10 Size 31 Space 30 Supplies 7 Suspended Losses 6 a ie Tables 2 Taxable Income 12 Taxes 6 712 13 1725 27 Bracket 33 Credits 12 Liability 6 12 Rate 12 Savings 33 Service 13 Technical Support 35 Template Notes 1 Templates 4 Included 4 Interface Overview 1 Types of Variable Data 2 Tenant Improvements 18 Term 14 18 33 Times 2 Top 10 U Unamortized Points 6 Underwiriting 13 Units 31 35 Usable Square Feet 8 USF 8 Utilities 7 V Vacancy ODE UEM NOUS Vacancy Losses 12 Valuation 16 Val
9. 3 Cap Rate Cap Rate is the same as Income Rate Valuation IRV See the Income Rate Valuation template instead 3 3 4 Cash Flow Analysis Available in the Invest RE template category Used to analyze cash flow in relation to a property Variables E cF ana E EE Year year of the analysis for informational purposes E i E lal xl Template Options Help Taxable Income Year Rental Inc potential rental income Losses vacancy and credit losses Rental Inc Other Inc other income Losses Oper EXP operating expenses Other Inc NOI net operating income susto MOL Intrst Due interest due for all mortgages IEEE Cost Revry cost recovery whether improvements personal property or other mm EOS costs RE Tax Inc RE Tax Inc taxable income for the property Tax Rate t Tax Rate tax rate expressed as a percentage Tax Liab Tax Liab tax liability MO Cash Flow Debt Srvc Debt Srvc annual debt service and other cash flow expenses CFBT CFBT cash flow before taxes Tax Liab EN Tax Credits investment tax credits Tax Credits CFAT cash flow after taxes CFAT Dane Clear Source CCIM Course Concepts Review Reference Manual Cash Flow Analysis Worksheet 3 3 5 Cash On Cash Cash On Cash is the same as Effective Dividend Rate EDR See the Effective Dividend Rate template instead 1997 2005 Infinity Softworks 13 CRE Pack Manual 3 3 6 Closing Co
10. 8 Loan ARM FF Loan 80 20 E ioj xl Template Options Help Loan Type Conventional Loan Amt 0 00 Inter abr 0 00 Years 30 0 Payment aL Inter 20 0 00 Years 20 0 Payment 20 Fimta EM Blended Done Clear Amort1 Amona Available in the Loan RE template category Performs Adjustable Rate Mortgage ARM calculations With the powerOne Data Service interest rates are integrated seamlessly in the template Visit www infinitysw com dataservice for more information 1997 2005 Infinity Softworks 23 CRE Pack Manual Variables ET Loan ARM Dl x Loan Type Conventional 12 compounding periods year or Canadian 2 compounding periods year Template Options Help Loan Amt amount of the loan Loan Type Conventional Rate Source source for interest rate data Use Custom to enter your own Loan Amt 250 000 00 interest rate or if you subscribe to the data service choose from several Rate source Fannie Mae LIBOR Index automatically updated national interest rates See options below E Margin Src The lending organization s markup on underlying indexed rates MORES Sea Available if Rate Source is set to an Index rate Choose either Custom to enter Mea SE your own interest rate or if you subscribe to the data service choose Avg TEET ARM Margin See options below mit Pmt 1 45693 E Index Displays the associated index rate expres
11. Annual Property Operating Data APOD FT Alt Cash Sales Template Options Acn Basis Cap Addtns Cost Revry Partial Sale Adj Basis sale Price Sales Costs Prtcptn Pmt suspnd Loss Cap Gain Liniamrt Pts Rate Ol Tax Liab CG Reports CG Ratet Cts Tax Liab Recaps Recap Amt Prncpl Bal CR Recap BT Proceeds Tax On Sale AT Proceeds Done Clear O 0 0 0 Help Available in the Invest RE template category Enter the operating expenses either in per square foot or total dollars If Prop Size is 0 assumes total dollars are entered otherwise per square foot This is often referred to as APOD 1997 2005 Infinity Softworks Templates 8 Variables Data amp Revenue Template Options Help Prop Size property size per square foot Only enter if the expenses are Prop size 0 entered as per square foot also Pin Income Vacancy Ss O Ptnl Income potential property income Enter as per square foot if Prop Size Eff Income is not 0 otherwise enter as total dollars Vacancy vacancy rate entered as a percentage Eff Income effective income RE Taxes 0 00 Inzurance 0 00 Mingmt Fees 0 00 Payrall EXP 0 00 Expenses Maint nance 0 00 RE Taxes real estate taxes Repair 0 00 Insurance mortgage and other property insurance Utilities 0 00 Mngmt Fees management fees Janitorial 0 00 Payroll EXP payroll expenses include tax
12. basis Term holding periods of property whether in months or years depending on Period Type PSF Month the Period Type Term 0 00 Acq Cost acquisition cost Acq Costs 0 00 Other Costs other costs e g points fees commissions etc Other Costs 0 00 Other other concessions een 0 00 Cash Flows periodic rental payments Column 1 is the amount and column 2 T ERE c sees is the number of times that payment is received ISIN UE Disc Rate annual discount rate entered as a percentage Template Options Help Error Check Term Mo Match Per Rates Calculations KPY Error Check whether the months for payment and the entered term match NPS Term Per Rate discount rate expressed on a periodic basis as determined by MLIS Anny the Period Type Avr Rental NPV net present value IR Fe NPV Term net present value per term NUS Annty net uniform series of payments or annuity This is also known as Done clear net effective rental in Canada ELE m Avg Rental average rental without discounting IRR internal rate of return expressed as an annual rate You must have initial cash outflows to calculate IRR e g If Tenant Imps plus Commission plus Other is 0 then IRR will display 0 3 5 7 Rent Per Usable Square Feet Available in the Manage RE template category Converts the rental rate for office space from either a rentable area basis to usable area basis or a usable basis to a rentable are
13. have different lengths Variables 2 E Base the length of the base or bottom edge he Trap ux Top the length of the top edge Template Options Help Height the height of the trapezoid The height is perpendicular to the base and top edges Area area of a trapezoid Done Clear 3 2 11 Area Triangle Available in the Area template category Calculates the area of a triangle This template provides two alternative methods the first uses the base length and height The second uses measurements for the three sides 1997 2005 Infinity Softworks 11 CRE Pack Manual Variables FT A Triangle loj x Option 1 Template Options Help Base length of the base of the triangle Height height from the base to the opposite point The height is perpendicular to the base Area area of a triangle Option 2 Side1 length of side 1 Side2 length of side 2 Side3 length of side 3 Area area of a triangle Dane Clear 3 3 B l This section covers templates starting with the letters B through l 3 3 1 Blended Rate Available in the Finance template category Calculates the blended interest rate and subsequent monthly payment Variables ap FT Blended Rate a 2l x Principal1 3 remaining principal amount for each of the loans Int Rate 1 3 interest rate for the each of the loans expressed as a Isrpeke ddpusmEs pp percentage Princi
14. mortgages during the last week adjusted to assume 0 points paid Avg 1 Year ARM average total interest rate charged to those with 1 Year ARM mortgages during the last week Avg 5 1 Year ARM average total interest rate charged to those with 5 1 Year hybrid ARM mortgages during the last week PITI Escrow View 1997 2005 Infinity Softworks 29 CRE Pack Manual Variables qq EE Ix Show change to see Mortgage or Analysis sections of this template z Ex EE 15i xl Home Ins annual amount paid for home owner s insurance Template Options Help Mrtgage Ins annual amount paid for mortgage insurance show PI Taxes amount paid for taxes and entered base on Tax Type Payment 0 00 Tax Type This sets how taxes are used in the calculation Tax Year is the Home Ins 0 00 total amount of yearly taxes Tax is the taxes based on a percentage of the Mrtgage Ins 0 00 mortgage Tax1000 is the amount of taxes per thousand of the mortgage Taxes 0 00 Other annual amount paid for other obligations i e association dues condo Tax Type TaxPrear fees Other 0 00 PITI PITI amount This is the payment including taxes insurance and other PITI 0 00 expenses Often this is the amount paid to escrow Done Clear Amort Analysis View Variables umm E x Show change to see Mortgage or PITI Escrow sections of this template Le Ici xl Loan Amt actual loan amount after the down
15. payment is removed from the J P ate Options Hep price Show Analysis Close Costs up front costs paid to close the loan This is the sum of points Payment 0 00 and fees Loan Amt 0 00 Init Costs amount of money paid up front This includes a down payment Close Costs 0 00 and closing costs Init Costs 0 00 P amp I Paid total principal and interest payments made over the life of the Pl Paid 0 00 mortgage PIT Paid 0 00 PITI Paid total PITI payments made over the life of the mortgage APR 0 000 APR annual percentage rate displayed as a percentage This is the real interest rate for the mortgage when points and fees are also considered as a cost of attaining the mortgage Done Clear Amort Buttons Amort display the amortization view If Blin Yrs is 0 the loan is displayed as fully amortized otherwise the amortization is displayed to the balloon payment Assumptions Payments are made at the end of every month 1997 2005 Infinity Softworks Templates 30 3 9 2 Mortgage Equity Available in the Invest RE template category Mortgage Equity Analysis is a weighted average of the debt portion of a real estate investment compared to the equity portion Variables mm E rx Cap Rate income capitalization rate expressed as a percentage Cap rate 7 n E ici xl is used to convert a single year Net Operating Income to an estimate of Template Options Help Mar
16. 1 Vacancy FT Seller s Net Template Options Price Comin to Loan Amt Other Costs Met Amit Comm Amt Done Clear Help Available in the Manage RE template category Calculates the percentage of total units available for rent at any given time Inputs are in units typically expressed as Square Feet for commercial leases or Number of Apartments for multifamily residential leases Vacancy Rate can be calculated when either vacant units or occupied units are known This template will automatically choose Occupied Units if that value is filled in set Occupied Units to 0 to use Vacant Units in the calculation Variables Total Units total existing units Vcncy Units number of units currently vacant Occ Units number of units currently occupied Vacancy vacancy rate expressed as a percentage Source CCIM Course Concepts Review Reference Manual p 117 4 Appendix This section includes additional information about the product e Technical Support e Printing This Manual e Legal and Disclaimers 4 1 Technical Support For technical support please visit Infinity Softworks web site www infinitysw com support The web site contains Template Options Total Units 0 Yoney Units 0 Occ Units 0 vacancy ws i5 x Help 1997 2005 Infinity Softworks Appendix 36 e Extensive database of technical support questions and answers e Information about
17. 1997 2005 Infinity Softworks 9 CRE Pack Manual 3 2 6 Area Circle Available in the Area template category Calculates the area of a circle Variables Diameter diameter of the circle Area area of a circle Template Options Help Diameter 0 Area O Done Clear 3 2 Area Ellipse Available in the Area template category Calculates the area of an ellipse An ellipse is an elongated circle or oval Variables i E a Ellipse Diam Lngth diameter length in one direction Diam Width diameter width in the other direction TIC E Area area of an ellipse Diam Lnath 0 Diam Width 0 Area Done Clear 3 2 8 Area Rectangle Available in the Area template category Calculates the area of a rectangle Variables FF A Rectangle Length length of one side Width width of another side that touches the length s side Template pons Hep Area area of a rectangle Dane Clear 1997 2005 Infinity Softworks Templates 10 3 2 9 Area Square Available in the Area template category Calculates the area of a square Side Length length of one side a ee E Area area of a square SSeS SE Oee Side Length 0 Area 0 Done Clear 3 2 10 Area Trapezoid Available in the Area template category Calculates the area of a trapezoid trapezium A trapezoid has parallel top and bottom edges that
18. IRR Done Clear will display O NER US net effective rental for US leases only also known as average rents This is the effective rent received after deducting all costs of leasing e g commissions improvements etc NER Can net effective rate or rental for Canadian leases only This calculation consists of the average yearly rents received divided by other concessions paid on an annual basis Commissions and tenant improvements are not considered 3 4 2 Lease Comparison Available in the Manage RE template category Displays calculations for the five Lease Analysis templates A through E for comparison purposes 1997 2005 Infinity Softworks 19 CRE Pack Manual Variables Per Rate discount rate expressed on a periodic basis as determined by the Period Type NPV net present value NPV Term net present value per term NUS Annty net uniform series of payments or annuity IRR internal rate of return expressed as an annual rate IRR requires initial cash outflows e g If Tenant Imps plus Commission plus Other is 0 then IRR will display O NER US net effective rental for US leases only also known as average rents This is the effective rent received after deducting all costs of leasing e g commissions improvements etc NER Can net effective rate or rental for Canadian leases only This calculation consists of the average yearly rents received divided by other
19. ON et t 35 2 Printing This Manual ec E a 36 3 b gal and DISCIAIITIGES nsei S EEA a EEE 36 Part V Index 37 1997 2005 Infinity Softworks 1 CRE Pack Manual 1 Interface Overview All templates are similar in design The template itself is broken into 3 columns the first describes the variable the second is the variable s data and the third indicates which variables can be calculated To use any template enter the known variables by selecting the Data column and entering each If a table of data is required choose or create one by selecting the label for that variable To calculate the unknown variable select the button on its row For details not noted here and examples on how to use individual templates see the desired template in the Included Templates section A Template Notes select this button to display notes about the template Notes generally describe what the template is used for a description of each variable and any special template instructions On Palm OS the notes icon appears in the top right hand corner On Pocket PC the notes icon C appears in the menu bar On Windows select the Options menu Present Val 0 00 Payment 0 00 Intrst Yr 9s 0 00 Periods Periods Yr 12 B Variable Label describes the variable s contents Generally the label is nothing more than a text description but sometimes labels can be selected Labels that can be selected are surro
20. a basis Variables W Rent Usable SF m x Rent USF rental rate per square foot based upon a usable square foot measurement Template Options Help Rent RSF rental rate per square foot based upon a rentable square foot eniti SF 0 measurement Rent RSF 0 R U ratio of rental square feet to usable square feet for office building RA O leases Done Clear 3 5 8 Rent v Buy Available in the Loan RE template category Compare the amount of home that can be purchased for a rent amount It is important to consider not only the amount of home that can be purchased but also the tax savings 1997 2005 Infinity Softworks Templates 34 Variables FT Rent v Bu E iri x Tax Bracket estimated percent of income paid to taxes p E lal xl Type Conventional 12 compounding periods year or Canadian 2 Template Options Help compounding periods year Tax Bracket 0 00 Down Pmt mortgage down payment Enter the same as Down Type an Loan Type conventional amount or a percentage Down Pmt 0 00 Down Type choose whether the down payment is entered as an amount ora Pen Type Amount Renta 0 00 Intrati r 0 00 Years O percentage Rent Mo rent paid each month Intrst Yr interest rate for the mortgage expressed as a percentage Years number of years for the mortgage m Loan Amt Price price for the home Loan Amt actual loan amount after the down pa
21. ademarks and registered trademarks are property of their respective owners 1997 2005 Infinity Softworks 37 CRE Pack Manual 5 index The index is your guide to key words throughout the manual It starts on the next page 1997 2005 Infinity Softworks Index 1 A Absorption 6 Accounting 7 Adjustable Rate Mortgage 22 ADS ree con reza pere Advertising 7 Amortization 16 20 22 27 Annual Debt Service 11 12 13 21 31 Annual Percentage Rate 27 Annuity 18 33 Appraisal 13 APR 27 Area 9 10 Assets 19 ATCF 12 17 Average Rent 18 33 B Balance 26 Balloon 16 24 27 31 Balloon Years 16 27 Base 10 Basis 6 Acquisition 6 Adjusted 6 BE 11 31 Blended Rate 11 22 Breakeven 26 Breakeven Occupancy Rate 11 31 BTCF 12 15 17 31 C Calculate 1 Canadian 16 20 22 24 25 27 33 Cap Rate 12 16 30 31 Capital Additions 6 Capital Gains 6 Cash 19 Cash Flow 15 17 31 33 Cash on Cash 12 Clear 1 Closing 27 Costs 27 Date 24 Fees 13 Commissions 18 31 34 Compounding Periods Per Year Construction Consumer Price Index CPI Conventional 14 21 6 6 20 22 24 25 27 33 Cost Recovery 6 12 Costs ld Credit Losses 12 Credit Report 13 Current Ratio 19 D Data Service 22 23 27 Dates 2 DCR 13 31 Debt 19 25 Debt Coverage Ratio 13 31 Debt To Asset Ratio 19 Demolition 6 Depreciation 6 Diameter 9 Discount Rate 18 33 Done 1 Down Paymen
22. age l Due the date the loan becomes due May be the entire amortization term or Template Options Help a time prior to the full amortization period for balloon loans Effective s 0 Term yrs term of the loan expressed in years Determines the full Due D amortization period for the loan Term ray Cmpnds Yr number of compounding periods per year Cmpndzvr Pointe 0 Int Rate 0 Penalty 0 Points points or prepaid interest expressed as a percentage One point equals one percent Int Rate stated interest rate of the loan expressed as a percentage Penalty Prepayment penalty This is a percentage rate expressed as a whole number Done Clear 1997 2005 Infinity Softworks 15 CRE Pack Manual 3 3 10 Employment Forecast Available in the Econ RE template category Forecasts future employment Variables p E Market Emp total employment in the market area H A E x Basic Emp total basic employment in the market area Template Options Help Tot Pop total population in the market area Market Emp Basic Emp F forecasted basic employment Basic Emp O Tot Pop F forecasted total population Tet Pop 0 Tot Emp F forecasted total employment Basic Emp F 0 Tot Pop F Assumptions NOMEA An increase in basic employment will cause an increase in total employment Source CCIM Course Concepts Review Reference Manual p 101 Done Cl
23. an also calculate total payments and interest paid over a range of years Beg Year the year payments begin End Year the year payments end Pmt Sum sum of payments over this designated range Int Sum sum of interest paid over the designated range Interest Rate and Margin Options source for all rates Freddie Mac Avg 30 Year Fixed average interest rate offered to those opening new 30 year fixed interest rate mortgages during the last week adjusted to assume 0 points paid Avg 15 Year Fixed average interest rate offered to those opening new 15 year fixed interest rate mortgages during the last week adjusted to assume 0 points paid Avg 1 Year ARM average total interest rate charged to those with 1 Year ARM mortgages during the last week Avg 5 1 Year ARM average total interest rate charged to those with 5 1 Year hybrid ARM mortgages during the last week 3 4 10 Loan Odd 1st Period Available in the Loan RE template category Most loans do not close on the last day of the month but instead close at some point in the middle of the month In this case the interest amount accrued during the time between closing and the first payment date must either be paid upfront as a part of the closing costs or added to the loan amount and amortized over the life of the loan 1997 2005 Infinity Softworks 25 CRE Pack Manual Variables F Loan Odd ist F nml x Loan Type conventional
24. ar Year 0 is the present time Year 5 is the reversion year IRF E i Financing GPI gross potential income expressed as an amount This is the income derived from renting leasing space only Vacancy vacancy cost Expenses expense costs NOI net operating income including revenue from rentals leases and other income ADS annual debt service BTCF before tax cash flow DCR debt coverage ratio EDR equity dividend rate also known as cash on cash expressed as a percentage BE breakeven occupancy rate expressed as a percentage ROI return on investment expressed as a percentage CF Data displays each year s cash flow data Positive numbers are inflows negative numbers are outflows CF Data is only visible in the reversion 5th year IRR internal rate of return expressed as a percentage The IRR is applicable only in the reversion 5th year so it only appears in that year It is recommended that you enter data when IRR is not visible Buttons Financing select to go to the Financing template 1997 2005 Infinity Softworks 33 CRE Pack Manual 3 5 6 Property Analysis Available in the Invest RE template category Performs several basic investment return analyses for a property acquisition Variables i E z Period Type whether the entries are in total dollars or dollars per square foot Propty Ang E ial x PSF with entries on either a monthly or yearly
25. arate screens It also includes an amortization view Change the Show variable to see different views Mortgage calculates loan and balloon payment information PITI calculates PITI and Escrow data Analysis shows summary information about the loan With the powerOne Data Service interest rates are integrated seamlessly in the template Visit www infinitysw com dataservice for more information Mortgage View 1997 2005 Infinity Softworks Templates 28 Variables aem IX Show change to see PITI Escrow or Analysis sections of this template ici x Type Conventional 12 compounding periods year or Canadian 2 Template Options Help compounding periods year Show Mortgage Price negotiated price of the home Loan Type Conventional Down Pmt mortgage down payment Enter the same as Down Type an Price 0 00 amount or a percentage Down Pmt 0 00 Down Type choose whether the down payment is entered as an amount ora Down Type Amount percentage Points 0 000 Points points associated with the mortgage These are paid up front as a Fees 0 00 part of the closing costs Fees loan or origination fees These are paid up front as a part of the closing Pate Source Custom Int Fate 5 0 000 costs Pint Timing Bi v eek Years 30 Rate Source source for interest rate data Use Custom to enter your own Payment 0 00 interest rate or if you subscribe to the data serv
26. contacting Infinity Softworks e Free add ons including templates skins graphs data sets and import export beam plug ins e raining and curriculum materials 4 2 Printing This Manual While Infinity Softworks does not offer a printed version of this manual you are welcome to print it yourself To print you will need Adobe Acrobat Reader pdf After loading this file into Adobe Acrobat Reader select the menu File then Print To download a copy of Adobe Acrobat Reader visit Adobe s web site http www adobe com reader 4 3 Legal and Disclaimers Infinity Softworks Inc makes no warranty either expressed or implied including but not limited to any implied warranties of merchantability and fitness for a particular purpose regarding any programs or book materials and makes such materials available solely on an as is basis In no event shall Infinity Softworks Inc be liable to anyone for special collateral incidental or consequential damages in connection with or arising out of the purchase or use of these materials and the sole and exclusive liability of Infinity Softworks Inc regardless of the form of action shall not exceed the purchase price of this application Moreover Infinity Softworks Inc shall not be liable for any claim of any kind whatsoever against the use of these materials by any other party powerOne is copyright and registered trademark Infinity Softworks Inc All rights reserved All other tr
27. e table column is required often a template will guess at the additional table s columns To change that guess follow the same process for the additional templates To edit local or global table data e select the variable e enter data into the table by selecting each cell and entering data with the same pop up calculator used with Numbers described above e select OK to save the data and return to the template If the table is global any changes are saved with the global table as well as with the template s copy Dates Dates are entered using a selector similar to other applications On Palm OS handhelds however the year can be changed directly and in the range 1900 to 3000 To choose a date select the variable choose a year choose a month choose a day Times Times are entered using a selector similar to other applications To choose a time e select the variable e choose the hour by highlighting it and using the up down scroll arrows 1997 2005 Infinity Softworks 3 CRE Pack Manual e choose minutes by selecting each box in turn and using the up down scroll arrows e choose am or pm if not 24 hour time e Select OK to save the data or Cancel to throw out those changes 1997 2005 Infinity Softworks Types of Variable Data 4 3 Templates This section includes information on the templates included with this Pack Start with Included Templates for an overview of
28. ear 3 3 11 Equity Dividend Rate Available in the Invest RE template category Expresses an owner s desired rate of return on equity This is often referred to as EDR or cash on cash While this calculation reflects adjustments for gross operating income operating expenses and debt service it does not reflect the time value of Fr EDR Cash Cash ES io xj money taxes nor changes in value Template Options Help EDR 0 Variables BTCF EDR equity dividend rate expressed as a percentage Inv Base BTCF before tax cash flow Inv Base investment base or the current amount of equity that the owner has at risk in the property Done Clear 3 3 12 Equity Yield Available in the Invest RE template category Borrowing funds only makes sense when the funds increase the equity yield produced by an income property This template calculates that amount 1997 2005 Infinity Softworks Templates 16 piene IF Equity Yield E oj x Loan Amt loan amount for the property nes E bx Int Rate interest rate of the loan expressed as a percentage Borrow Cost cost of borrowing or rather the total interest expense over the Loan Amt 0 00 life of the loan Int Rates U NOI net operating income for the property Borrow Cost 0 00 CFBT cash flow before taxes for the property Eqty Invest equity investment Eqty Yield equity yield expressed as a percentage Template Opti
29. ed value This ratio is initially used to establish limits on the amount that will be loaned on any one property i e up to 80 of the lender s appraised value This is often referred to as LTV 1997 2005 Infinity Softworks Templates 22 Variables LTV loan to value expressed as a percentage Loan principal balance on the existing loan s Value appraised value of the property 3 4 7 Loan 80 20 il x Template Options Help LTY 0 Loan Value O Done Clear Available in the Loan RE template category Calculates the total payment and blended interest rate of an amount spread 80 on one loan and 20 on another Variables Loan Type select between conventional loans compounds monthly and Canadian loans compounds twice per year Loan Amt total amount of the loan Int Yr 80 interest rate for the 80 portion Years 80 loan term for the 80 portion Payment 80 monthly payment for the 80 portion Int Yr 20 interest rate for the 20 portion Years 20 loan term for the 20 portion Payment 20 monthly payment for the 20 portion Pmt Mo first year s total payments per month Blended first year s interest rate blended for the two loans Buttons Amort 1 displays amortization view for the 80 portion Amort 2 displays amortization view for the 20 portion Assumptions Payments are made at the end of each month 3 4
30. es and benefits Accounting 0 00 Maint nance maintenance expenses Legal 0 00 Repair repair expenses Licenses 0 00 Utilities utilities including heat air electricity water and garbage Advertising 0 00 Janitorial janitorial expenses supplies 0 00 Accounting accounting expenses Other EXP 0 00 Legal legal expenses Oper EXP Advertising advertising expenses Supplies supplies expenses Other other operating expenses Oper EXP operating expense Always displayed as total dollars nage TM NE Net Income net property income Assumptions If Prop Size is 0 all entries are expected to be total dollar costs If Prop Size is not 0 entries are made either as per square foot or total dollar cost If entered per square foot this template expects Prop Size to not be O Prop Size is shared between multiple templates If property size is changed note that it will change in all templates Source Gary Tharp CCIM and the Commercial Investment Real Estate Institute 3 2 5 Area R U Ratio Available in the Manage RE template category Calculates the ratio of rental square feet to usable square feet for office building leases The R U ratio expresses the efficiency of an office building e er HU Area R U Ratio i oj x R U ratio of rentable to usable square feet xD xi RSF Rentable square feet USF Usable square feet Template Options Help Done Clear
31. ice choose from several automatically updated national interest rates See options below Blin vrs Int Rate interest rate for the mortgage expressed as a percentage Emm Pmt Timing how often payments are made See below for details Years number of years for the mortgage y gag Done Clear Amort Payment amount to be paid based on the Payment Timing If Payment Timing is set to Monthly then Payment is the monthly payment amount Balloon Payment Blin Yrs years until the balloon payment estimate see amortization view for increased accuracy Balloon amount to pay at Blin Yrs if paid early estimate see amortization view for increased accuracy Payment Timing Options Bi weekly payments are made every two weeks 26 payments per year 2x Month payments are made in the middle and end of each month 24 payments per year Monthly payments are made monthly 12 payments per year Quarterly payments are made quarterly 4 payments per year 2x Year payments are made every 6 months 2 payments per year Yearly payments are made yearly 1 payment per year Interest Rate and Margin Options source for all rates Freddie Mac Avg 30 Year Fixed average interest rate offered to those opening new 30 year fixed interest rate mortgages during the last week adjusted to assume 0 points paid Avg 15 Year Fixed average interest rate offered to those opening new 15 year fixed interest rate
32. integrated seamlessly in the template Visit www infinitysw com dataservice for more information Variables em Loan Int Only ol x Principal loan s principal amount Rate Source source for interest rate data Use Custom to enter your own interest rate or if you subscribe to the data service choose from several automatically updated national interest rates See options below Int Rate interest rate expressed as a percentage Payment Timing how often payments are made See below for a description Years years until the loan is due balloon payment Payment amount to be paid based on the Payment Timing If Payment Timing is set to Monthly then Payment is the monthly payment amount Template Payment Timing Options Bi weekly payments are made every two weeks 26 payments per year 2x Month payments are made in the middle and end of each month 24 payments per year Monthly payments are made monthly 12 payments per year Quarterly payments are made quarterly 4 payments per year 2x Year payments are made every 6 months 2 payments per year Yearly payments are made yearly 1 payment per year Options Principal Rate Source Int Fate e Prnt Timing Y ears Payment Beg Yr End r Prnt Sum Int Surm Help 275 000 00 cuiii enin Ee eir cut Avg 1 6 ear ARM 4 125 Bi weekly 10 94551 1 10 306 437 50 113 437 50 Dane Clear This template c
33. ket Value or most probable selling price Cap rate reflects the market Cap Rates U perception of risk associated with a particular real estate investment LTY 0 LTV Loan to Value expressed as a percentage A lender s underwriting ko D ratio used to determine if a particular property qualifies for a loan EDR D k loan constant expressed as a percentage Measures the true cost of borrowing giving consideration to the effective interest rate the payback of interest and the payback of principal EDR equity dividend rate also known as the cash on cash rate of return expressed as a percentage Measures an owner s desired rate of return on equity Done Clear 3 5 3 Natural Breakpoint Available in the Manage RE template category In retail leases tenants typically pay a percentage of sales as additional rent over and above their base rent determined by a square footage rental rate Natural breakpoint calculates the amount of sales necessary before the additional rent is due Variables T E imi x Nat Break Natural Breakpoint E ns ES lO x Min Rent square footage rental rate or can also be input as total monthly Template Options Help rent Mat Break 0 Rent Percentage expressed as a whole number applied to gross sales to Min Rent 0 calculate additional rent due SoRent Dane Clear 3 5 4 Office Gap Available in the Econ RE template category Determines if there is a projected imbala
34. ks Templates 14 Variables DCR debt coverage ratio l NOI net operating income Template Options Help ADS annual debt service which is the monthly payments annualized o x Dane Clear 3 3 8 Effective Gross Rent Multiplier Available in the Invest RE template category A simple technique to estimate the sale price of investment real estate It ignores time value of money This is often referred to as EGRM Variables Value value of the property sale price GPI gross potential income This represents the rental income the property Template Options Help could produce if it were 10096 leased 100 of the time at full market rents Value 0 00 EGI effective gross income Reduces GPI by the amount of vacancy GP 0 00 recognized in the market EGI 0 00 RM GRM gross rent multiplier Estimates market value based on an estimate of EGRE gross potential income EGRM effective gross rent multiplier Estimates market value based on an estimate of effective gross income Done Clear 3 3 9 Effective Interest Rate Available in the Finance template category Converts nominal or stated interest rates into Effective Interest Rates by giving consideration to the impact of prepaid interest in the form of points and deferred interest in the form of prepayment penalties Variables o Fr EFF Int Rate Ioj x Effective effective interest rate expressed as a percent
35. l of all payments over the loan s life Toten Total Prt 1 Pmt Mo Dif difference of payments per month between loan 1 and loan 2 A mtr 2 0 000 positive number denotes that Loan 1 is greater than Loan 2 TE Tot Pmt Dif difference of the total payments between loan 1 and loan 2 A Payment 2 positive number denotes that Loan 1 is greater than Loan 2 Total Int 2 Total Pmt 2 Buttons Amort 1 displays amortization view for the first loan Prntitvia Dif Amort 2 displays amortization view for the second loan Tot Prnt Dif Assumptions Payments are made at the end of every month Done Clear Amort Amort 1997 2005 Infinity Softworks 21 CRE Pack Manual 3 4 5 Loan Constant Available in the Finance template category Loan constant measures the true cost of borrowing with consideration to the effective interest rate the payback of interest and the payback of principal Multiplying the loan constant by the amount to be borrowed gives the payment Loan constant can also be used to compare loan alternatives Investors choose the loan with the lowest loan constant since it achieves the lowest annual debt service and results in the highest cash flow There are two alternatives to calculate Loan Constant Change the Type to choose the Simplified or Expanded version Simplified Version Variables Type choose to change to Exanded version of this template k9e loan constant The loa
36. loans compound interest 12 times per year v Canadian compounds interest 2 times per year This value only impacts the Payment Loan Type Conventional Loan Amt amount of the loan Close Date closing date for the loan Loan Amt 0 00 Pmt Date date the first payment period begins This may or may not be the Close Date Fr ov 3 2004 same as the date the first payment is made In other words if the loan P oei IE MN Template Options Help payment is due on August 31 the period would begin on August 1 August 1st MN would be entered for Pmt Date mirat rp Int Rate yearly interest rate expressed as a percentage Odd Days number of days between Pmt Date and Close Date Intrst Prt Intrst Amt amount of interest accrued during the period between Pmt Date n and Close Date This is calculated using Regulation Z daily interest rate times Pmt Timing the principal times the number of odd days Balloon Payment Intrst Pmt whether the accrued interest amount calculated in Intrst Amt is paid Upfront or Amortized over the life of the loan When amortized the Intrst Done Clear Amot Amt is added to the Loan Amt EIE E Years years for the loan If there is a balloon payment this is the years until the balloon payment Pmt Timing how often payments are made See below for details Balloon amount of a balloon payment Payment periodic payment amount Payment Timing Bi Weekly payments made 26 times per
37. n constant is an interest factor that can be used to determine the annual debt service of a loan Multiply the loan constant by the principal amount of the loan to determine annual debt service ADS annual debt service monthly payments annualized Loan current loan balance Expanded Version Variables Type choose to change to Simplified version of this template Pmt Timing whether payments are made at the beginning as in amortizing lease payments or end of the payment period as is common with loans when interest is earned for financing Int Rate interest rate of the loan entered as a percentage Years term of the loan in years Payment how often payments are made whether Monthly Yearly or Bi Weekly Compound how often interest compounds whether Monthly 12 times year Canadian 2 times year or Annual Loan Cnst loan constant expressed as a decimal in the same terms as Payment k loan constant expressed as an annual percentage 3 4 6 Loan To Value F Loan Constant E 2l x Template Options Help Type Simplified k 0 ADS 0 00 Loan Bal 0 00 F Loan Constant E xl Options Help Type Expanded Pint Timing End Int Fate 0 00 Years O Payment Monthly Compound Monthly Loan Cnet 0 000000 k O Done Clear Available in the Finance template category Compares the ratio of outstanding debt on a property to the property s apprais
38. nce of units in office space 1997 2005 Infinity Softworks 31 CRE Pack Manual Variables Gap Office Offc Emp number of existing office employees Offc Emp F number of forecasted office employees Exist Space existing office space often expressed as square feet Offce Emp Pipeline office space in the development pipeline often expressed as square tfc Emp F feet Vacancy vacancy rate expressed as a percentage Gap excess demand or supply of office space often expressed in square feet Source CCIM Course Concepts Review Reference Manual p 123 3 5 5 Proforma Template Options Exist Space Pipeline vacancy vs ap Done Clear il xl Help Available in the Finance template category Used to forecast a property s cash flow over a five year period It is assumed that the reversion year is the last year 1997 2005 Infinity Softworks Templates 32 Variables l l l F Proforma E xl Entry Type the format in which data is entered The data can be entered as z Square Feet Units or Amounts Size SF property size in square feet Only available if the Entry Type is set Entry Type Square Feet Template Options Help to Square Feet size SF 0 Units number of units i e apartments Only available if the Entry Type is value 0 000 set to Units LT U Value property val
39. nths until breakeven Old Rate 0 Years O Hew Ratet D Breakevern 0 Done Clear 1997 2005 Infinity Softworks 27 CRE Pack Manual 3 4 13 Location Quotient Available in the Econ RE template category Assists in determining which industries have a stronger equal or weaker presence in the local economy v the national economy A Location Quotient of 1 means there is the same percentage of employment in the local and national industries Greater than 1 means it is stronger less than 1 means weaker pelle F Location Qtnt E ILI x Tot Market total employment in the local economy Q E 15 x Tot Country total employment in the national economy Local Ind total employment in the local industry Tot Market Nat Ind total employment in the national industry Tot Country Local Ind Mat Ind Template Options Help Lcl Emp percentage of local industry employees out of the entire local population Nat Emp percentage of national industry employees out of the entire national population Loc Qtnt location quotient Lel Emp Mat Emp Loc Grit IM Review Ref M 7 Source CCIM Course Concepts Review Reference Manual p 9 E CEST 3 5 M Z This section covers templates starting with the letters M through Z 3 5 1 Mortgage Available in the Loan RE template category Performs various mortgage calculations PIT and summary analysis information in three sep
40. ntly available Variable data appears in the middle column of the template and can be selected and edited if it is underlined otherwise it can only be calculated Each variable data type is discussed here Numbers Numbers are entered using the pop up calculator To enter a number e Select the variable s data e enter the number with the keypad or use the calculator to compute it e select the v save button to return to the template and save the number or choose x cancel button to return to the template without saving Lists Lists show a set of defined options To choose an item from a list e Select the variable e choose an option from the list scrolling if necessary Tables Tables or sets of data come in two types The first type is available for use in any template while graphing or for calculation in the main calculator It is considered global The second type is available only to the selected template This type is considered local Global tables always have a dotted box around the variable s label To choose a global table for use in the template e Select the variable s label It will have a dotted box around it e next to table choose None Selected then a table name or to create a new table select New e once a table is selected Column appears Choose a column number or range of numbers if applicable e Select OK to save the table selection or Cancel to throw out any new selection If more than on
41. ons Help Mer 0 00 CFAT 0 00 Eqty Invest 0 00 Eqty Yield 0 Done Clear Source CCIM Course Concepts Review Reference Manual p 91 3 3 13 Financing Available in the Finance template category Calculates loan financing with or without a balloon payment when points and fees are included in the loan amount Variables PT Fi i E imi x Type Mini Perm 12 compounding periods year or Canadian 2 RES EE Ing compounding periods year Template Options Help Proceeds proceeds cash needed to finance the property Type Mini Perm Points96 points associated with the loan entered as a percentage Proceeds 0 00 Fees loan or origination fees Points 0 Loan Amt amount to borrow including all points and fees Fees 0 00 Loan Amt Years number of years for the loan EET Es Int Rate interest rate for the loan expressed as a percentage Int Rates e 0 000 eal Payment monthly payment amount Pa yment 0 00 L7 Blin Yrs years until the balloon payment Balloon amount to pay at Blin Yrs if paid early Alin vrs 0 Blin Yr 5 7 10 displays the balloon payment at the end of the 5th 7th and Balloon 000 E 10th years respectively Blin vr amp 121 032 37 EI Allin rr 7 ES Buttons Blin r 10 Amort display the amortization view If Blin Yrs is 0 the loan is displayed as fully amortized otherwise the amortization is displayed to the balloon payment Done Clear Amo
42. ortgage Insurance annual amount paid for home owners insurance Loan Type Intrati rio Years Insurance Phil Taxes Tax Type ther Conventional 0 00 0 0 00 0 00 0 00 Taxir 0 00 PMI annual amount paid for mortgage insurance Taxes The amount paid for taxes See Tax Method to see how this number is used ELE Tax Type This sets how taxes are used in the calculation Tax Year is the Sosa total amount of yearly taxes Tax is the taxes based on a percentage of the mortgage Tax1000 is the amount of taxes per thousand of the mortgage pane SERE Other other obligations on a per month basis i e association dues condo fees Payment monthly payment amount for the mortgage Loan Amt maximum amount that can be borrowed Assumptions Payments made at the end of every month 3 4 12 Loan Refinance Available in the Loan RE template category Calculates how many months it takes to pay off the cost of refinancing a loan Money is saved on payments after the breakeven point Variables VUE em Loan Refinance E xl Fees the cost of financing the new loan origination fees etc E Balance balance remaining on the current loan Template Options Help Old Rate current loan interest rate as a percentage Fees 0 00 Years number of years for the new loan Balance 0 00 New Rate new loan interest rate expressed as a percentage Breakeven number of mo
43. pal 1 0 00 Blend Rate blended interest rate expressed as a percentage Int Fate i1 0 000 Years years for the new loan Principal 0 00 Payment monthly payment amount for the new loan Int Rate 0 000 Principals 0 00 Assumptions Int Rate 3 0 000 payments are made monthly interest is compounded monthly payments are made at the end of each month Blend Ratet 0 000 Years 0 Payment 0 00 Done Clear Amort 3 3 2 Breakeven Occupancy Rate Available in the Manage RE template category Identifies the level of occupancy that a property must achieved to either literally breakeven pay the property expenses and annual debt service or to breakeven and pay a return to the investor 1997 2005 Infinity Softworks Templates 12 Variable FT BE Occ Rate ES In xj BE breakeven occupancy rate expressed as a percentage v EDR equity dividend rate otherwise known as the cash on cash rate of Template Options Help return or the owner s desired rate of return Expressed as a percentage BE Inv Base Investment Base or the current amount of equity that the owner EDR has at risk in the property Inv Ene EXP property s operating expenses ADS annual debt service The monthly mortgage payments annualized GPI gross potential income This represents the rental income the property could produce if it were 100 leased 100 of the time at full market rents ADS 3 3
44. rt Praforma Proforma select to go to the Proforma template Assumptions Payments made at the end of every month 3 3 14 Income Rate Valuation Available in the Invest RE template category Calculates an Overall Rate of Return OAR for income producing property Cap rate is used to convert a single year Net Operating Income to an estimate of Market Value or most probable selling price This calculation is often referred to simply as Cap Rate 1997 2005 Infinity Softworks 17 CRE Pack Manual As an OAR cap rate reflects the property s ability to produce a return free and fra IR Cap Rate clear of any debt Consequently the calculation can be used to determine the l leverage position of mortgage financing o x Template Options Help NOI 0 00 Variables Cap Ratet 0 0 NOI net operating income value 0 00 Cap Rate capitalization rate expressed as a percentage The cap rate reflects the market perception of risk associated with a particular real estate investment Value market value for the property This could be the most probable selling price of a real estate investment Dane Clear 3 3 15 Investment Base Available in the Invest RE template category The investment base is a combination of equity an investor has to invest or remove from a current investment plus after tax cash flow from the sale of a property Variables Sale Price sale price of the property
45. sed as a percentage Visible if Rate Source is set to an Index rate mm Margin Displays the associated margin rate expressed as a percentage Rate Ch535 Visible if Rate Source is set to an Index rate How Often Every Month Int Rate total interest rate for the mortgage expressed as a percentage Annual CH 1 Years number of years for the mortgage Max Ch B Init Pmt initial payment amount before interest rate adjustments This is the payment amount if the mortgage was fixed rate Dane Clear Amort Init Years years for the initial interest rate and payment amount before changes can occur Rate Ch yearly expected interest rate change expressed as a percentage Can be thought of as the expected market rate change A positive number denotes an expected rate increase negative denotes an expected rate decrease How Often how often the interest rate and payment amount will adjust Annual Ch maximum interest rate change during any one calendar year of the loan expressed as a percentage Max Ch maximum interest rate change from the initial rate expressed as a percentage For instance if the initial rate is 6 and it caps at 10 then Max Ch is 4 Buttons Amort display the amortization view Assumptions Payments are made at the end of every month Interest Rate and Margin Options Avg 1 Year ARM average interest rate charged to those with 1 year ARM mortgages during the last week so
46. sts Available in the Loan RE template category Often times there are costs associated with purchasing property These costs aren t actually known until the loan closes but lenders must provide a Good Faith estimate beforehand This template assists in estimating those closing costs Variables Close Fees summation of incomes and expenses associated with closing a mortgage Loan Amt amount of the loan Required for calculating Origin Fee if only if Origin is entered Origin loan origination expense entered as a percentage This is used only to calculate Origin Fee If you know the loan origination fee enter it on the next line and skip this percentage Origin Fee loan origination fee Dscnt Fees discount fees Appraisal appraisal fees Cred Report fees for a credit report Process Fee processing fees Underwrite underwriting fees Flood Cert cost of flood certificate Tax Service tax service Admin Fee administrative fees Wire Fee wire fees Intrst Amt amount of interest due between the closing date and date of first payment This can be calculated with the Loan Odd 1st template Hazard Ins reserve deposits and up front payments for hazard home owner s insurance Mrt Ins PMI reserve deposits and up front payments for mortgage insurance Mortgage insurance is generally required until the principal remaining on the home is greater than 8096 of the home s value
47. t 2 33 Due 14 E Earnings 19 EBIT 19 EDR 11 12 15 17 30 31 Effective Gross Income 14 Effective Gross Rent Multiplier 14 Effective Income 7 Effective Interest Rate 14 EGI 14 EGRM 14 Employment 15 27 30 Equity 19 Equity Dividend Rate 11 12 15 17 30 31 Expenses 19 31 Amount 31 Square Feet 31 Unit 31 F Fees 13 16 26 27 Flood Certificate 13 38 1997 2005 Infinity Softworks 39 CRE Pack Manual G Gap 30 GPI 11 14 31 GRM 14 Gross Potential Income 11 14 31 Gross Rent Multiplier 14 H Height 10 How Often 22 i 1 Gross 25 Income Rate Valuation 12 Initial Costs 27 Insurance 7 13 25 27 Interest Amount 13 20 24 Interest Due 12 Interest Only Mortgage 23 Interest Payment 24 Ihterest Rat 6 20 21 22 23 24 25 26 27 33 Interest Sum 23 Internal Rate of Return 18 31 33 Invested 34 Investment 15 17 Investment Base iS Investment Value 17 IRR 18 31 33 IRV 12 J Janitorial 7 K k 21 30 L Legal 7 36 Length 9 10 Liabilities 19 Lists 2 Loan 21 Loan AmoumB 15 16 20 22 24 25 27 33 34 Loan Balance 17 21 Loan Constant 21 30 Loan To Value 21 30 31 Location Quotient 27 LTV 21 30 31 M Maintenance 7 Management Fees 7 Mini Perm 16 Miscellaneous 31 Amount 31 Square Feet 31 Unit 31 Mortgage 17 N Natural Breakpoint 30 NER 18 33 Net Effective Rent 18 33 Net Income 7 Net Operating Income 12 13 15 16 31 34 Net Present Value
48. templates and their categories From there view details on each template 3 1 Included Templates These templates are included with this pack Additional templates are included with your powerOne application or are available to download and install from Infinity Softworks web site www infinitysw com Included template are sorted into the following categories Area e A Circle A Ellipse A Rectangle A Square A Trapezoid A Triangle Econ RE e Absorption e Emp Forecast e Gap Office e Location Qtnt Finance Blended Rate DCR Eff Int Rate Financing Loan Constant LTV Proforma Invest RE Alt Cash Sales APOD CF Analysis EDR Cash Cash EGRM Equity Yield Invest Base Invest Value IRV Cap Rate Mortgage Equity Property Analysis ROI Loan RE 1997 2005 Infinity Softworks 5 CRE Pack Manual Closing Costs Loan Compare Loan 80 20 Loan ARM Loan Int Only Loan Odd 1st Loan Qualify Loan Refinance Mortgage Rent v Buy Seller s Net Manage RE Adjusted Rent Area R U Ratio BE Occ Rate Lease A Lease B Lease C Lease D Lease E Lease Compare Lease Qualify Natural Breakpoint Rent Usable SF Vacancy Uses data service See www infinitysw com dataservice for details 1997 2005 Infinity Softworks Templates 6 3 2 A This section covers templates starting with the letter A 3 2 1 Absorption Available in the Econ RE template categor
49. the tenant have enough current assets to Tot Equity meet current debts with what kinds of margin for safety Prof Mrgn Profit Margin What percentage of sales is left over after Curr Ratio subtracting all expenses except income taxes How does that compare to Prot Mrano other companies in the same industry This is expressed as a percentage Debt Asst Debt Asst Debt to Asset Ratio How much of the tenant s business is Feriis Sales reliant on debt financing versus owner s equity This is expressed as a percentage Rent Sales Rent as a Percent of Sales What percentage of a tenant s total sales will rent be Is the new space more expensive than the tenant can actually afford This is expressed as a percentage 3 4 4 Loan Comparison Available in the Loan RE template category Calculates the payment of two loans with the same loan amount and different terms A 1 or 2 next to the variable designates each loan s data Total payments and total savings are also calculated a F Loan Compare E mix Loan Type Selects between conventional loans that compound 12 timesa E E zai xi year and Canadian loans that compound twice per year Template Options Help Loan Amt Total amount of the loan Loan Type Conventional Loan Amt 0 00 Int Yr interest rate Years number of years Inter 1 0 000 Payment monthly payment Years 1 0 Total Int total interest paid over the loan s life Payment 1 Total Pmt tota
50. ty leases Use these in connection with the Lease Comparison template which summarizes Lease data Variables Period Type whether the entries are in total dollars or dollars per square foot PSF with entries on either a monthly or yearly basis isl x Template Options Help Term total months or years for the lease depending on the Period Type Period Type PSP month Tenant Imps improvement dollars paid Term 0 00 Commission commission dollars paid Tenant Imps 0 00 Other other concessions e g relocation costs lease buy outs etc Commission 0 00 Cther 0 00 Payment periodic rental ments Column 1 is the amount an lumn 2 i ayment periodic rental payments Colu s the amount and colu S Payment aS the number of times that payment will be made Disc Rate annual discount rate entered as a percentage ne ______ Disc Ratet 0 000 Error Check Term Match Calculations Per Rate 0 833 Error Check whether the months for payment and the entered term match NPY 48 48 Per Rate discount rate expressed on a periodic basis as determined by MPM Term O8 the Period Type MLISAnnty 1 03 NPV net present value IRR 8 231 NPV Term net present value per term MER LIS 1 16 NUS Annty net uniform series of payments or annuity NER Can 15 00 IRR internal rate of return expressed as an annual rate IRR requires initial cash outflows e g If Tenant Imps plus Commission plus Other is 0 then
51. ue LTV96 percentage of the loan being financed E Big ayment l Blin r 5 Financing Payment monthly payment amount Use the Financing template to calculate SE Blln Yr 5 the balloon amount following the 5th year Use the Financing commi template to calculate Cap Rate D Reversion Rent sF 0 00 Commsns commissions paid at sale entered as a percentage Esc 0 Cap Rate capitalize rate entered as a percentage vacancy m D Misc sF 0 00 Rent SF Rent Unit Rent Amt rent entered in square feet units or as an Fact D amount as indicated by the label This should be yearly amount See Entry Exp aF 0 000 Type to change the setting Esc 0 Esc yearly rent escalator entered as a percentage Em Vacancy percentage of property vacant GPL ES Misc SF Misc Unit Misc Amt miscellaneous income entered in square feet Wm EJ units or as an amount as indicated by the label This should be yearly poem Ea amount See Entry Type to change the setting MOE ES Esc yearly miscellaneous income escalator entered as a percentage ADE 2 Exp SF Exp Unit Exp Amt expenses entered in square feet units or as an BTCF E amount as indicated by the label This should be yearly amount See Entry DCR EN Type to change the setting EDR556 ea Esc yearly expense escalator entered as a percentage BES o ROIS ES Year year to analyze Each variable below is calculated based on the CF Data E selected ye
52. ue 14 21 31 Variable 1 Calculate 1 Data 1 Label 1 W Width 9 Y 11 YBanst 16 20 21 22 23 24 25 26 27 31 33 Yield 15 40 1997 2005 Infinity Softworks
53. unded by a dotted border and exist for one of two MEM MEM reasons e Select a Table some templates require a table and offer the ability to use any table including those already created using My Data Examples are 2 variable statistics and ANOVA templates See the Types of Variable Data section for more information on selecting and using a table e Change the Data View some variable s can be entered or viewed in multiple ways For example the variable Diff H MM in the Time template In this case select the variable s label to enter and calculate the same data item a different way In the Time template the difference in time can be entered in hour minute Diff H MM or fractional hour Diff Hrs format ete rr re C Variable Data the value or data for the variable To enter data select its value and enter it The data can be entered if it is underlined otherwise it can only be calculated Data can be shown in multiple ways See the Types of Variable Data section for more information D Calculate indicates that the variable can be calculated Select it to perform the calculation E Buttons while there may be more than two buttons these two exist in every template e Done or OK exits the template e Clear or C clears the contents of the template This reverts the data to its defaults 1997 2005 Infinity Softworks Interface Overview 2 2 Types of Variable Data There are 5 variable data types curre
54. urce Freddie Mac Avg 5 1 Year ARM average interest rate charged to those with 5 1 year hybrid ARM mortgages during the last week source Freddie Mac 1 Year OMT Index 1 Year Constant Maturity Treasury index the most widely used index used for roughly half of all ARMs especially those with annual rate adjustments To reach the interest rate charged by a lending organization enter or choose a margin as well source Federal Reserve COFI Index 11th Federal Home Loan Bank District cost of funds index which is primarily used for ARMs with monthly rate adjustments To reach the interest rate charged by a lending organization enter or choose a margin as well source Federal Home Loan Bank of San Francisco Fannie Mae LIBOR Index 6 Month London Inter Bank Offering Rate as computed at the end of each month To reach the interest rate charged by a lending organization enter or choose a margin as well source Fannie Mae Avg ARM Margin average margin charged to those with ARM mortgages during the last week source Freddie Mac Custom enter your own interest rate or margin 3 4 9 Loan Interest Only Available in the Loan RE template category A popular financing option is interest only loans This means only interest is paid until a designated date At that time the loan is paid off balloon payment 1997 2005 Infinity Softworks Templates 24 With the powerOne Data Service interest rates are
55. y Absorption is used to reflect the amount of leasing activity over a period of time typically one year By knowing absorption for a submarket one can determine the leasing velocity of a particular building based upon that property s market share Variables are in units typically expressed as Square Feet for commercial FT Absorption E ici xi leases or Apartments for multifamily residential leases E Template Options Help Variables Absorption Absorption units absorbed Beg Sac Beg Vac unit vacancy at the beginning of the analysis period Mew Const New Const units of new construction during the analysis period Demo Demo units of property that have been literally demolished and removed End Vac from the market and or the units of property whose use has been changed and thus removed from the market End Vac unit vacancy at the end of the analysis period 3 2 2 Adjusted Rent Available in the Manage RE template category Calculates a new rental rate based on the effect of inflation as expressed by a change in the Consumer Price Index CPI Variables E E Ix Adj Rent adjusted rent juste E ici xl Curr CPI CPI index for the current month of the calculation Base CPI CPI index for the base year of the lease as defined in the lease Adj Rent U agreement Curr CPE 0 Base Rent rental rate as expressed in the lease for the base year Base CPI Base Rent 0 Template Options Help Done
56. year 2x Month payments made 24 times per year Monthly payments made 12 times per year Quarterly payments made 4 times per year 2x Year payments made 2 times per year Yearly payments made 1 time per year Note Odd Days is calculated using the day count method set in Template Prefs available on the Options menu It defaults to Actual days 3 4 11 Loan Qualification Available in the Loan RE template category Calculates the amount of home one can afford based on income and debt 1997 2005 Infinity Softworks Templates 26 eee F Loan Qualif E goj x Income gross income per month A E il x Debt monthly debt payments Record in the table Debt Amt sum of the debts entered in the table Income 0 00 Debt percentage of income used to pay debt Debt Table 1R x16 Debt Amt Home maximum percentage of monthly income that can be used for the Debts mortgage payment and taxes PITI Total maximum percentage of monthly income that can be used to pay all debt including mortgage and taxes Template Options Help H rmet Totals Total Prt Total Pmt maximum monthly payment amount for mortgage insurance and taxes PITI or escrow payment Loan Type select between conventional loans compounds monthly and Canadian loans compound twice per year Intrst Yr interest rate for the loan expressed as a percentage Years number of years for the m
57. yment is removed from the Beg Month price End Month Tax Savings Beg Month beginning month to calculate tax savings This must be greater than zero and less than the total amount of months Done Clear End Month ending month to calculate tax savings This must be greater than zero and less than the total amount of months Tax Savings total amount saved in income tax over the selected time Assumptions Payments are made at the end of every month 3 5 9 Return On Investment ROI Available in the Invest RE template category Divides the net operating income by the total dollars invested This is often referred to as ROI Variables NOI net operating income Invested total amount invested ROI return on investment expressed as a percentage MOI 0 00 Invested 0 00 o x Template Options Help ROl O 0000 Done Clear 3 5 10 Seller s Net Available in the Loan RE template category Calculates the net amount a seller could receive from the sale of real estate Also useful for calculating the commission owed to a real estate agent 1997 2005 Infinity Softworks 35 CRE Pack Manual Variables Price sales price of the property Comm commission percentage paid Loan Amt amount owed on any loans on the property Other Costs other costs including closing costs Net net proceeds from the sale Comm Amt amount paid as commission 3 5 1

Infinity powerOne CRE 2 (669449305208)

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