**Please note: All highlighted fields in WHITE are modifiable to suit your needs, allowing you to structure the deal as needed. Point cursor to cell for explanation on field entry on the Parameters-Options screen.
All parameters’ fields have been pre-filled for you as an example. Replace all parameters’ fields with applicable information.
PAES v2.16 © will allow you to determine if a deal is profitable in minutes. However, it is crucial to do your due diligence first to get accurate numbers to determine the projected return on any deal. If the information entered in the parameters page is nonfactual the result will not be accurate nor reliable.
PAES v2.16 © is designed to make the evaluation of a subject property acquisition fast and easy. PAES v2.16 © is an automated evaluation application, which requires minor input from the investor. Additionally, it is dependable and allows modification within reason to develop different scenarios. It allows for adjustment of interest rate and financing scenarios, such as, private investor funding, HML (Hard Money Lending), Conventional Financing and the use of credit cards, and more.
Further, it provides a snap shot of potential cash flow in the event that the subject property is rented, seller financed, Hold or Sandwich Leased Optioned. In addition, the cash flow snap shot provides you with visual graphs, NOI (Net Operating Income), DCR (Debt Coverage Ratio) and DS (Debt Service).
Moreover, it predetermines three (3) possible lease option scenarios to be presented to the end buyer. It provides the investor with a structured deal for Hold Lease Option and Sandwich Lease Option. In addition, PAES v2.16 © allows the investor to modify the distribution of the Return On Investing (ROI) among three different investors or partners on any deal.
Although, PAES v2.16 © is a simple and basic evaluation application, it does provide the investor with a thorough analytical approach to cover most out of pocket expenses before, during and after acquisition including a projected holding period of three (3) months (default- it can be modified). Furthermore, PAES v2.16 © provides a clear ROI goal reflecting if the acquisition is a sound financial investment by meeting or exceeding expected rate of return (ROI) before taxes.
The application provides for contingency allowance to minimize possible unforeseeable expenses on holding cost and repairs estimates. Consequently, the investor shall consider this safety feature when deciding on the MOA (Max Allowable Offer). The recommended MAO range reflects, depending on the purchase discount percentage chosen, the ROI. The recommended ROI shall always be between 15 and 20 percent. However, the investor has full control to structure the deal depending on specific variants only known to the investor.
The difference in results from the Acquisition Evaluation sheet and the Financial Assessment sheet is due to different variables. Some of the variables that affect the calculations are down payment amount, assignment fee and contingency factors. Further, the Acquisition Evaluation sheet is based on a combination of conventional financing, private investor’s money, and credit cards, whereas, the Financial Assessment sheet is based on HML lending.