Look at Real Estate Investment
like you would a business
ThruThink® is designed to look at Real Estate Investment a little differently; Net Income, EBITDA, Cash Flow, Annual Budgets, and then the Rate of Return.
Each property can be entered as a Project along with it's income, expenses and the debt required to acquire the property.
The Projects can be compared using the Summary report feature of ThruThink®
1. Analysis can be for a purchase of a new investment or an analysis of an existing investment
Investment can be either for a portion of the Equity or 100% of the Equity.
2. There is a choice of five time horizons for your analysis - 3, 5, 10, 15 or 20 years
3. Make an estimate for an Exit Sale at the end of your time horizon to reflect the real return
4. There can be three classes of Equity ownership
Each class can have a different percentage of Equity and a different percentage of Gain on Exit Sale of the Company. The latter is designed to provide an Operations Manager an incentive upon the Exit Sale of the Company. Multiple Projects can be saved and compared.
5. Internal Rate of Return calculations for each equity group reflecting both annual returns and the Exit Sale
6. The ThruThink Deal Score® can be used as a comparison gauge between Projects.
7. Analysis can be made using either Sales, Cost of Goods Sold (Cost of Service; food, labor, etc.) inputs or alternatively just direct EBITDA inputs
Along with these inputs, debt levels and repayment options and an array of Subordinated Debt options along with PIK Interest and Warrants. There is a Performance Earn Out provision for either the Seller or strategic investor.
All of this information will then be organized into a Snap Shot Summary, a Balance Sheet, Income Statement, and Cash Flow for each year of your Horizon and Transaction Sheets for your deal.
See all of the reports here
Check out the ThruThink Deal Score®
