The Right Tool For Winning CRE Deals

What do you get with a subscription to TheAnalyst PRO? 

Short answer, A Lot.

Long answer, well that’s going to take a moment. 

Financials

First and foremost, you get access to unrivaled financial analytics for evaluating cash-flowing commercial real estate assets. From discounted cash flow reports to Pro Forma and Comparative Lease Analyses, you can measure the financial health of any potential deal. 

Due Diligence

With TheAnalyst PRO, you can run FEMA floodplain reports, pull FBI crime statistics, dive into ESRI demographics, and even evaluate potential environmental issues before putting a dime into feasibility.

Marketing for Your Listings & Potential Listings

TheAnalyst PRO gives you access to a vast array of Offering Memorandums, Flyers, Brochures, Email Campaign Templates, and can even create a Property Website with NDA functionality. Tie this all together with our brand new iframe widget for displaying your inventory of listings on your website and you have every tool you could possibly need for showcasing your client’s assets to the world. 

Even More Features

Finally, there are an array of additional features including a property tour and rating system that automatically calculates the best route between sites and allows you to take pictures and document your notes as you do your walkthroughs. Be sure to download our iOS or Android app for the best experience with this one! 

Better yet - it's the best value of its kind in the market!

All of these powerful and time-saving features can be had for the incredibly low price of $599.99 per year!

That's less than $2/day!

Mastering Lease Analysis with TheAnalyst PRO

Training Recap:

Mastering Lease Analysis with TheAnalyst PRO

The value of an investment property is the income from that property. The income from that property is generated by leases. So an understanding of leases is paramount in this industry, no matter which realm of real estate you operate in. 

Key Takeaways:

Lease analyses are crucial for making informed decisions, mitigating risk, and enhancing your negotiation power. 

In this training, we use TheAnalyst PRO's Comparative Lease Analysis tool to dive into the fundamentals of commercial leases, from Gross Leases to Absolute Net Leases and everything in between. We discuss key details like the difference between usable and rentable square footage, key calculations and cashflow measures, as well as other considerations that every landlord and tenant representative needs to be aware of. 

All of these facets of commercial leases are accounted for in TheAnalyst PRO, ensuring your calculations are complete and reliable. 

Finally, this webinar also illustrates how you can incorporate a comparative lease analysis into a comprehensive offering memorandum with a complete due diligence report. A process that takes mere minutes using TheAnalyst PRO. With just a few clicks, you can also create a property website, Flipbook, and even an email campaign template to market your listing to the world.

Download the Comparative Lease Analysis Sample Report

View the Offering Memorandum Created in this Training

Interested in a one-on-one demonstration of this dynamic platform? 

Schedule a demonstration with one of our amazing team members today!

Schedule a Demo

Investment Metrics Decoded: IRR vs. MIRR

Internal Rate of Return (IRR)
vs. 
Modified Internal Rate of Return (MIRR)

Written by: Bryce Berta, M.A.

Sales and Marketing Specialist for TheAnalyst PRO

When assessing investment opportunities, two critical metrics take center stage, IRR (Internal Rate of Return) and MIRR (Modified Internal Rate of Return). These metrics, though related, offer unique insights into a project's potential profitability. Let's delve into their key distinctions.

IRR, a long-standing industry standard, signifies the discount rate at which an investment's net present value (NPV) reaches zero. Essentially, it reveals the rate at which an investment appreciates or depreciates over time. A higher IRR generally indicates a more promising investment prospect. However, IRR has its limitations, particularly in dealing with complex cash flow patterns that can lead to multiple or no solutions, making it challenging to interpret.

Enter MIRR, a refined version of IRR engineered to address its drawbacks. MIRR assumes that positive cash flows are reinvested at the reinvestment rate, mirroring real-world scenarios more faithfully. This eliminates the possibility of multiple IRRs and guarantees a single, dependable rate of return. Unlike IRR, MIRR also acknowledges that negative cash flows are calculated at the finance rate, a more pragmatic consideration.

While IRR and MIRR provide a relative measure of investment performance, it's crucial to consider an additional metric to gauge the actual increase in cash. Accumulated Capital, also known as Equity Accumulation, measures the total equity an investor accumulates in a real estate investment over time. IRR and MIRR indicate relative increases in percentage terms, whereas accumulated capital quantifies the actual growth in investor equity.

In summary, both IRR and MIRR are indispensable tools for evaluating investments. While IRR has been the historical benchmark, MIRR offers a more realistic and dependable assessment by factoring in practical reinvestment and financing rates. Incorporating both metrics into your investment analysis toolkit empowers you to make well-informed decisions, minimizing risks and maximizing returns.

TheAnalyst PRO offers an array of incredibly easy to use investment analysis tools, including MIRR and Accumulated Capital reports that can be run in mere minutes. If you are a broker or investor needing to analyze a commercial real estate investment property, TheAnalyst PRO is the tool for the job. 

Leveraging TheAnalyst PRO for Cutting-Edge CRE Marketing

 

Take-aways from our Webinar:

Master the New Property Listing Website Widget & Office Admin Panel

Watch the Recorded Webinar Here

Significant enhancements have been added to TheAnalyst PRO, raising the bar for property marketing and significantly boosting efficiency at the office level!

Let's dive right in!

Property Listing Website Widget

This allows you to now market all of your active properties in one display, which can be placed on your professional website.

--- Feed listings to any website, whether an individual, a team or an entire company.

--- Create multiple widgets, depending on the need (i.e. currently active, closed successes, pending-taking-backups, etc.).

--- Lead generation! Capture potential clients right when they are actively looking.

--- Advanced search options for both you (ease of organizing), and your site visitor (ease of finding what they want)

In iframe format, you can insert the HTML coding into any website coding. From there update your properties from within TheAnalyst PRO account, and they update your feed automatically.

Provide eye-catching property packages (as detailed or minimal as you choose), change them as needed, add any additional informative documents.

Price Sensitivity Analyses

 

Acquisition • Disposition

Price Sensitivity: Explained

Written by: Bryce Berta

Sales Executive for TheAnalyst PRO and Commercial Real Estate practitioner

Every broker and investor wishes they had a crystal ball that could show them exactly how every deal was going to go. Unfortunately for us mere mortals, prophecy is not quite feasible at the moment. However, the next best thing is easily attainable and it's called a Price Sensitivity Analysis.  Let's say you are looking at a cash flowing property like a small multifamily development. To understand how this investment will perform, there are three key areas that we need to look at. First, how much money are we going to pay for this asset? Second, how much is this investment going to pay us every month? Lastly, how much are we going to sell this property for? For the most part, the market tends to dictate rental rates. So, figuring out cash flows is fairly straightforward. We can look at the current rental market and find comparable properties upon which to base our assumptions. However, we still need to figure out what we can pay for this property. We probably know what the seller wants for it. It's usually in bold on the front page of their OM. But, how much can we negotiate and still get the return we are looking for? The same goes for the disposition. If the market goes haywire in a few years, are we still going to meet our investment targets?

sample created by Bryce Berta

  

Looking at this matrix, we can see that the asking price of $16,000,000 gives us a CAP rate of 8.52% based on our assumed cash flows. But what if we get into a bidding war and have to pay 5% or 10% above ask? Well, that would push CAP rates down to 8.11% and 7.74% respectively. Looking down the line, we can see that our IRR and Cash on Cash would be impacted fairly significantly. On the other hand, if we can negotiate the price down by 5% or 10%, the reverse would be true.  

sample created by Bryce Berta

   

What about when we go to sell this asset? What does the future hold? Well, we can set a range of possibilities and project what the impact of those possibilities would be. In this instance, I set our assumed disposition CAP rate to 8% and set the matrix to a half a percent and full percent both above and below. If I thought there was going to be more volatility, I could set this range to be as wide or as narrow as I want. 

Now, we can see what would happen if we sold this asset at each of these given CAP rates over the next five years. We can see the appreciation or depreciation of this property’s value. We can see what the actual sales price would be as well as our overall Internal Rate of Return. 

If you are a sophisticated investor and have a hard drive full of Excel models, this may be something you could do in an afternoon. But, for someone with a subscription to TheAnalyst PRO, this is a 20 minute task. No finance degree required. 

1-Year Proforma Cash Flow Projections

 

Maximizing CRE Investment: 

The Key Role of 1-Year Proforma Cash Flow Projections

TheAnalyst PRO's new 1-Year Proforma Cash Flow Summary report is crucial for real estate investments for several reasons, three of which we examine here:

 

Investment Evaluation:

Download Sample Report

This report provides a detailed look at the expected cash flows from the property over a year. By considering both the income generated (like rent, parking fees, etc.) and the operating expenses (such as taxes, insurance, maintenance, utilities, property management fees, etc.), it allows potential investors to estimate their net operating income (NOI). This is a critical metric in determining whether the property can provide a satisfactory return on investment.  

Risk Assessment:

The Proforma Cash Flow Summary report allows investors to assess the risk associated with a potential real estate investment. By examining the expected cash flow, investors can gauge the property's financial stability. If the projected cash flows are inconsistent or negative, it might suggest higher financial risk. Therefore, this report is a crucial tool for investors in making risk-adjusted decisions.  

Investment Comparison:

Proforma Cash Flow Summaries allow investors to compare different real estate investment opportunities side-by-side. They can examine the projected cash flows of various properties and make investment decisions based on expected returns.

Remember, though the Proforma Cash Flow Summary report is an important tool, it's based on estimates and assumptions. It's therefore crucial to use conservative estimates and to couple this tool with a thorough physical inspection of the property and a comprehensive market analysis.

DOWNLOAD a Sample Report Here

Schedule a demo to learn how you can create this report in as little as 5 minutes.

1031 Exchange: Regulations and Calculations

 

Recap from our Webinar:

1031 Exchange Regulations & Tax Deferred Calculations: Simplified

In this collaboration webinar we navigated 1031 Exchange regulations, presented by Asset Preservation and TheAnalyst PRO by CRE Tech. Our aim was to equip attendees with the knowledge and tools needed to master these complicated yet crucial aspects of the real estate industry.

Scott Saunders, Senior VP at Asset Preservation, a seasoned veteran with unparalleled expertise in 1031 Exchanges, provided an in-depth understanding of the associated rules and regulations. Explaining how to maximize the benefits of this tax-deferral strategy while staying fully compliant with the IRS rules.

In the second half of the this session, Todd Kuhlmann, CCIM, Founder of TheAnalyst PRO by CRE Tech, demystified tax-deferred calculations. This innovative platform is transforming how real estate professionals approach complex financial calculations.

Through an interactive session, attendees were guided through easy-to-understand methodologies, helping to streamline the calculation process, saving time and improving accuracy. We provided the opportunity to gain valuable insights and actionable skills, helping attendees prosper in the world of real estate investment. Whether a seasoned professional or new to the industry, this session offered a wealth of knowledge and tools that are not only useful but indispensable in today's competitive market.

Webinar recording available now in our Training Center!

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to your account today to access the recording.

To learn more about how TheAnalyst PRO can help speed up your 1031 calculations, reach out for a live demo.