40

Detailed Commercial Real Estate Video Library

These commercial real estate videos that detail how to use and understand planEASe are also availible from within the planEASe Software using the "Movie" menu items.

Assumption Set Specifications
Switching Models
Import using EzEntry
Investment
Investors
Depreciation
Loans
Revenue
Revenue Existing Leases
Revenue Lease Up
Revenue Owner Representation
Revenue Tenant Representation
Expenses
Reimbursements
Market Profiles
Development Spending Dialog
Development Unit Sales
Portfolio
Partnership/LLC
'What if' Sensitivity
'What if' Risk
Reports
Charts
Graphs
Presentation
Measures
Ratios
  • Capitalization Rate
  • Cash on Cash
  • Debt Coverage Ratio
  • Adj Capitalization Rate
  • Adj Cash on Cash
  • Breakeven Occupancy
  • Gross Income Multiple
  • NOI - Property Value
  • Operating Expense Ratio
  • Loan Balance - Property Value
  • Current Rate of Return
  • Accounting Rate of Return

Video Title: Ratios Adj Cash on Cash

  • video duration: 2:42 minutes
  • direct link to this video: https://www.planease.com/commercial-real-estate-video-training.aspx?1=MeasuresRatios&2=
  • video note:

    AdjCashonCash.mp4

    How is the Adj Cash on Cash calculated for commercial real estate investments and developments? What are the factors that the Adj Cash on Cash takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Adj Cash on Cash useful for investment real estate?

    Considers:
    • Down Payment, Scheduled Income (Current Year Only), Debt Payment (Current Year Only), Vacancies (Current Year Only), Expenses (Current Year Only), Capital (Development) Spending (from Previous Years), and Additional Investments and Dispositions (from Previous Years)
    Ignores:

    Why is Adjusted Cash on Cash useful?

    If you are a developer you can think of the Adjusted Cash on Cash as a Developer's Cash on Cash. If you are looking at an investment that is a development, rehab, or has major vacancies that need to be leased up, the traditional Cash on Cash might not give you a valid perspective. Using the Adjusted Cash on Cash for a year that has a stabilized Net Operating Cash Flow typically yields a better number. This is what the Adjusted Cash on Cash is designed for. It can be looked at in years beyond the first year, and it adds any additional spending items to the price. Some of those spending items might include tenant improvements, commissions, rehab construction items, development construction items, and so on. It also takes into account any partial sales and refinancing.

    What is the Adjusted Cash on Cash Sensitive to:

    Price, Expenses, and Revenue Items (Rent Increase/Decrease, Vacancy, Reimbursements, Free Rent), Tenant Improvements, Commissions, Rehab Construction Items, Development Construction Items, Partial Sales and Refinancing

    The Adjusted Cash on Cash is shown in these planEASe Reports:

    Author: