Your clients rely on you to determine what investments are smart for them to make and which investments aren’t. Your clients trust that you will put together an investment analysis report that will show them that they are making the right decision when investing in property. Whether this is their first real estate investment property or their tenth, the information you provide - and the format in which you present it - will fuel their decision-making process.
To make sure that you are presenting your client with the smartest investment, there are 3 must-haves you need in your investment analysis report.
#1: Rent Roll
The rent roll is a critical part of an investment analysis report, as it shows the potential investor the income that is being generated by the property. This includes the location of the property or properties, whether the property is occupied, and the rental rate. Some rent rolls will even include information on the lease of a property, including when the lease expires. Some may highlight recent updates and upgrades to the property, which provides the investor with a reference as to the condition of the property and what future improvements may be needed in the short-term.
The rent roll is extremely helpful, because the rent roll is an ongoing document that shows the property’s rental history. The potential investor can see how much the money the property generates with each unit as well as the status of any rental leases, and the rent amount for every unit. This information is vital in determining the significance of the potential investment.
#2: Time Value Calculations
Buying any type of property or land is a big investment that is long-term, meaning the buyer will want to know what the future value of the property or land is going to be. The future value of a property may make or a break a sale depending on the number. Time value calculations are important and a must-have in your investment analysis report, because buyers can’t make the decision as to whether a property is a good investment if they don’t have the numbers to prove it.
#3: Cash Flow
A successful real estate transaction only happens when the property offers a positive cash flow. Including this number in your investment analysis report will show potential buyers that they are purchasing a property that doesn’t have a negative cash flow and will be a good investment both short-term and long-term.
Understand a property’s cash flow with a comprehensive analysis of rate of return, cash flow and equity with metrics and investor reports. You can include a break-even analysis of an income property to see if the property is sustainable and viable for a long-term investment.
RealNex offers a flexible solution for you to help clients determine whether they are making the right investment with a comprehensive analysis report including rent roll, time calculations and more. As a real estate broker, your clients look to you to help them make the decision in purchasing a property, and RealNex can help you present that information in a highly professional and organized manner.