REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade. Each Financial Metric is detailed below.
From these Financial Metrics and additional data inputs, we generate a variety of reports. You can download samples of each report here. If you would like a custom report or metrics built to your specifications, please email us at info@buildreif.com.
REIF creates a 1-5 score for each Financial Metric based on the targets you set ("Neutral" and "1 Point"; see Visualize and Score Data Through Target Metrics and Conditional Formatting)
You can choose up to 15 Key Financial Metrics and up to 5 Key Years
You then weight each of those Financial Metrics and Key Years you selected to generate the Project Score and subsequent Project Grade
Project Score and Project Grade = single, all-encompassing data point based on your investor preferences to make your investment decisions efficiently and holistically
Fast, comprehensive real estate investment analysis to make a sound investment decision in 15-minutes
The Project Score and Project Grade can be viewed throughout the model at the top of each worksheet so you can see how changes in Inputs change the Project Score and Project Grade
There is also a separate Project Score and Project Grade report where you can see the details behind the calculation
Additionally, at the top of most worksheets you can see your Project Grade so as you change your assumptions and inputs you can see how those changes will impact your Project Score and Project Grade
See example below at the bottom of the post.
Rates of Return
Return on Investment: Total, Annualized; + Real = Total Value Net of Debt / Capital Contributions
Internal Rate of Return: + Real
Cash on Cash: Per Year, Total, Annualized; + Real = Cash Generated / Capital Contributions
Total Equity Multiple = (Cash Generated + Property Value Net of Debt) / Capital Contributions
Cash Multiple = Cash Generated / Capital Contributions
Valuation: Forward
Cap Rate = EBITDA / Total Development Cost
Price to Earnings = Total Development Cost / EBITDA
Revenue to Value (Annual) = Revenue / Total Development Cost
Revenue to Value (Monthly)
Gross Rent Multiplier = Total Development Cost / Revenue
Discounted Cash Flow = 5 Discount Rates at Target Year
Market Comparison % Premium/Discount = Cost per Square Foor or Acre / Comparison Properties
Opportunity Cost
Total Value Multiple = Project Total Value Net of Debt / Opportunity Cost Total Value
Gain/Loss Multiple = Project Total Gain/Loss / Opportunity Cost Total Gain/Loss
Total Value Net of Debt Difference: + REAL = Project Total Value Net of Debt - Opportunity Cost Total Value
Debt Ratios
Debt Coverage Ratio = Adjusted EBITDA / Debt Service
Loan to Property Value = Debt Balance / Property Value
Loan to Total Value = Debt Balance / Total Value
Efficiency Ratios: Per Year, Total, Annualized
Return on Assets = Net Income / Total Assets
Return on Equity = Net Income / Equity
Return on Invested Capital = NOPAT / Invested Capital
Cash Flow Breakeven = Year After Total Cash Generation > Total Capital Contributions
Profit Margins
Gross Margin = Gross Profit / Revenue
Operating Margin = Operating Income / Revenue
EBITDA Margin = EBITDA / Revenue
Net Margin = Net Income / Revenue
Project Value: +Real
Property Value = Cap Rate or Growth Rate
Cash Account Value
Total Value = Property Value + Cash Account Value
Total Value Net of Debt
Net Equity = Total Value / Total Value Net of Debt
Total Gain/Loss = Total Value Net of Debt – Total Capital Contributions
Income Statement
Revenue
Gross Profit = Revenue – Gross Expenses (COGS)
Operating Income = Revenue – Gross Expenses (COGS) – Operating Expenses
EBITDA = Revenue – Gross Expenses (COGS) – Operating Expenses – Other Expenses
Net Income = EBITDA – Interest – Taxes – Depreciation
Cash Flow Statement
Operating Cash Flow = EBITDA +/- Other Cash Flows +/- Credit Card Expenses/Payments
Free Cash Flow: + Real = Operating Cash Flow +/- Investing Cash Flow +/- Financing Cash Flow
Investing Cash Flow = Property Purchase/Sale, Capital Improvements
Financial Cash Flow = Capital Contributions/Distributions, Interest Income, Loan Proceeds/Payments, Income Tax
Growth Rates: Year-Over-Year, Total, Annualized
Revenue
EBITDA
Net Income
Operating Cash Flow
Free Cash Flow
Gross Expenses
Operating Expenses
Project Grade and Score Examples: Score Data Input | Report
