If you are a pro real estate broker or an individual investor that wants to do quick and easy profitability calculations with debt (re)financing, this app is for you!
User-friendly application allowing to calculate the capital gain realized on the sale of a real estate investment & related IRR, using leverage (debt quantum, interest rate, maturity) and by setting out some exit assumptions (year of sale, yearly RE market growth rate, initial purchase price of the investment). The application displays also the value at sale of the property, outstanding balance of debt at sale, monthly debt service, total debt service paid to date and the sale price ratio in currency/m2. All parameters can be set out by the user using sliders or by typing figures in text boxes. Capital gain value is re-calculated dynamically while the user is setting out our updating parameters.
- "Other expenses" item: set out as an additional monthly cost allowing to define an "all-in" budget comprising additional expenses customary for real estate assets (insurance, owners' collective expenses, etc.)
- Introduction of the notion of "rents" set out as a monthly revenue amount and allow to calculate a Net IRR and Net Capital Gain that includes the eventual total rents received from inception until sale date. You can also specify the start year of rental of your property so that you can decouple it from the acquisition year and rental start (rental can start at a later stage of the project).
- Historical simulations: store in your mobile several simulations you have tested and consult them later even in case you exit from the application, through a recap table
- debt capacity module: this module allows you to assess your indebtedness/debt capacity based upon a monthly target amount (input) that you can afford to allocate to debt service payments each month as well as upon interest rate & debt maturity assumptions
- Mail & CSV data export functionality: directly send & export by email (with CSV file generated & attached automatically) all inputs and outputs of your real estate simulation by clicking on the "SEND" button
- Calculation conventions:
- No over-leverage: i) as part of initial debt case, quantum of debt raised cannot exceed initial purchase price of the property. ii) as part of refinancing case, quantum of debt raised is equal to outstanding initial debt balance at refinancing date.
- interests are calculated upon begin of period debt balance for each period
- refinancing is assumed to occur begin of period and interests related to the year of refinancing are calculated upon the new refinancing debt interest rate
- at sale, outstanding debt balance is repaid at end of period, based upon end of period balance after annual debt service is paid
- Définitions:
- Gross capital gain post-sale = Sale proceeds - Outstanding Debt + Initial Debt Raised - Purchase Price
- New: NPV of Gross capital gain post-sale (upon user's discount rate assumption)
- Net cumulative proceeds (including capital gain post sale) and Net IRR are ultimately assessed AFTER deduction of total debt service paid to date, AFTER eventual additional other expenses (other expenses budget is set out as a monthly budget so that to be able to define an "all-in" budget comprising customary additional expenses for real estate assets like for example: insurance, owners' collective expenses, etc) and AFTER adding the eventual rents received from the property.
- New: NPV of Gross capital gain and Net cumulative proceeds post-sale (upon user's discount rate assumption that can be adjusted easily with a slider)
- Net IRR (%) = IRR based upon all annual net cash flows (debt drawdown, purchase price, sale proceeds, debt balance repaid at sale, debt service flows, breaking costs for early repayment (in case of refi), other expenses, rents received
User-friendly application allowing to calculate the capital gain realized on the sale of a real estate investment & related IRR, using leverage (debt quantum, interest rate, maturity) and by setting out some exit assumptions (year of sale, yearly RE market growth rate, initial purchase price of the investment). The application displays also the value at sale of the property, outstanding balance of debt at sale, monthly debt service, total debt service paid to date and the sale price ratio in currency/m2. All parameters can be set out by the user using sliders or by typing figures in text boxes. Capital gain value is re-calculated dynamically while the user is setting out our updating parameters.
- "Other expenses" item: set out as an additional monthly cost allowing to define an "all-in" budget comprising additional expenses customary for real estate assets (insurance, owners' collective expenses, etc.)
- Introduction of the notion of "rents" set out as a monthly revenue amount and allow to calculate a Net IRR and Net Capital Gain that includes the eventual total rents received from inception until sale date. You can also specify the start year of rental of your property so that you can decouple it from the acquisition year and rental start (rental can start at a later stage of the project).
- Historical simulations: store in your mobile several simulations you have tested and consult them later even in case you exit from the application, through a recap table
- debt capacity module: this module allows you to assess your indebtedness/debt capacity based upon a monthly target amount (input) that you can afford to allocate to debt service payments each month as well as upon interest rate & debt maturity assumptions
- Mail & CSV data export functionality: directly send & export by email (with CSV file generated & attached automatically) all inputs and outputs of your real estate simulation by clicking on the "SEND" button
- Calculation conventions:
- No over-leverage: i) as part of initial debt case, quantum of debt raised cannot exceed initial purchase price of the property. ii) as part of refinancing case, quantum of debt raised is equal to outstanding initial debt balance at refinancing date.
- interests are calculated upon begin of period debt balance for each period
- refinancing is assumed to occur begin of period and interests related to the year of refinancing are calculated upon the new refinancing debt interest rate
- at sale, outstanding debt balance is repaid at end of period, based upon end of period balance after annual debt service is paid
- Définitions:
- Gross capital gain post-sale = Sale proceeds - Outstanding Debt + Initial Debt Raised - Purchase Price
- New: NPV of Gross capital gain post-sale (upon user's discount rate assumption)
- Net cumulative proceeds (including capital gain post sale) and Net IRR are ultimately assessed AFTER deduction of total debt service paid to date, AFTER eventual additional other expenses (other expenses budget is set out as a monthly budget so that to be able to define an "all-in" budget comprising customary additional expenses for real estate assets like for example: insurance, owners' collective expenses, etc) and AFTER adding the eventual rents received from the property.
- New: NPV of Gross capital gain and Net cumulative proceeds post-sale (upon user's discount rate assumption that can be adjusted easily with a slider)
- Net IRR (%) = IRR based upon all annual net cash flows (debt drawdown, purchase price, sale proceeds, debt balance repaid at sale, debt service flows, breaking costs for early repayment (in case of refi), other expenses, rents received
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