Definition of Purchase/Sale tab items

PURCHASE/SALE
Note: to learn how to change purchase and sale details, see here

Purchase box

Fiscal Year 1 Begins = the day after Time 0, when operation of the asset begins. Time 0 is the point of acquisition. Changing the inputs here will override the Fiscal Year 1 Begins input on the Cash Flows tab, and vice versa.

Purchase Price = negotiated property purchase price, exclusive of any transaction costs. Changing the Purchase Price here will override the Purchase Price input on the Dashboard, and vice versa.

Capital Reserve = 
capital amounts, if any, escrowed at point of acquisition for capital projects past Year 1


Renovation Budget = amount identified, if anything, which will be spent towards property renovation after closing

Closing Costs = anything that does not fit into the other input fields related to closing

Year 1 Capital = capital amount, if anything, escrowed at point of acquisition for capital projects to occur during Year 1 of holding period

Due Diligence = acquisition costs related to study of the property prior to closing (legal, environmental, other consultants, etc.)



Fees & Taxes box

Acquisition Fee = Fee amount paid to Sponsor at point of acquisition

Broker Fee = Debt and/or equity broker fee(s) paid at point of acquisition

Recording Fees/Misc. = Fees paid at closing to jurisdiction for updating of land records

Transfer Tax = Tax paid at closing to jurisdiction for transfer of title

Total Leveraged Uses of Funds = total acquisition costs including any Loan Fee



Sale box

Holding period = 
the length the property is held from acquisition through sale. Changing the Holding period here will override the Holding period input on the Dashboard and Cash Flows tabs, and vice versa.

Sale Capitalization NOI =
the NOI off of which the sale year Gross Valuation is calculated. Choices are Sale Year, or Forward Year (the year after the year in which the sale occurs). Changing the input here will override the input for Sale Capitalization NOI on the Dashboard, and vice versa.


Sale Capitalization Rate = the rate by which the Sale Year or Forward Year NOI is divided to calculate the Gross Valuation (sale price) of the property. Changing the value here will override the Sale Cap Rate input on the Dashboard, and vice versa.

Click here to understand how Sale Cap Rates work in Valuate

Net Sales Proceeds = Gross Valuation - Selling Costs

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