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Investment Property Analysis (IPA)The purpose of Investment Property Analysis (IPA) is first to analyze and summarize the performance of your current real estate holding-sfrom a return on invested capital/equity standpoint. From there "options" will be evaluated to see where improvements (higher returns) canbe attained. The Investment Property Analysis (IPA) will provide a starting point and road map. Let us help you improve your returns withour proven real estate investment strategies. Equity Growth Cash Flow Tax Benefits Debt Analysis Mike CarlsonFounder, President & Principal Real Estate [email protected] x100www.RealtyYield.comRealty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Table of ContentsInvestment Property Analysis Report Overview, “the process”Investment Property Analysis (IPA) Report Foreword Performance summary and assessment of current real estate holding-s The opportunity summary (options outlined)Investment Property Analysis (IPA) Wealth Building Summary Performance (investment-financial analysis) of current holding-s summarized Projections (investment-financial analysis) of recommended strategy summarized Comparison of current holding-s “as-is” to recommended strategy summarizedInvestment-financial Analysis of Each Currently Owned Property Pre-tax cash flow, after-tax cash flow, yield after loan pay down and overall return analyzedRealty Yield Recommendations Performance recap of current real estate holding-s Recommendation-s summarized Property example of recommended strategy Recommended action plan & to-do’sBio of Realty Yield’s Founder & PresidentRealty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Investment Property Analysis (IPA)To start, Realty Yield will analyze and summarize the current performanceof your real estate holdings from a return on invested capital (equity)standpoint. A one- (1) and five- (5) year projection is made detailing pretax cash flow, income tax implication, debt (loan) impact on yield, andany projected appreciation. If your current holdings include multipleproperties each property will be analyzed individually. A cumulativesummary will also be prepared.Next, two fundamental strategic approaches are evaluated; the first iscash-out refinancing with the reinvestment of “pulled” net proceeds; andthe second is the selling of current properties and reinvesting the net saleproceeds. A combination of both approaches will also be evaluated. Theinvestment returns from each strategy (and a combination of theseoptions) are then compared to the current returns being generated todetermine if there is an opportunity to improve the financial performance(increase investment returns) of invested capital (equity). STEP 1: The operating data (income and expenses) for each property, anydebt (mortgage) information, as well as property acquisition data is to beprovided by the owner/investor. STEP 2: This data will be used by Realty Yield to generate a “Quick View”Investment Property Analysis (IPA) of the investment return on investedcapital (equity) for each property in the investor’s portfolio. Then, thecumulative investment returns of all owned properties are convenientlyillustrated in our Real Estate Wealth Building Analysis Summary report.The analysis will cover the four- (4) primary engines impacting investmentreal estate returns (pre-tax cash flow, income tax implication, debt/loanimpact on yield and any projected appreciation will be factored). A taxbasis computation will also be computed. STEP 3: Reallocation options of invested capital (equity) are examined.The first alternative analyzed will focus on a cash-out refinance scenarioutilizing the available “pulled” net cash proceeds for reinvestment into anew properties. The cumulative returns of the current properties with newloans PLUS the new properties projected returns are compared to thecurrent as-is situation. The second alternative analyzes the option ofselling existing property-(s) and reinvesting the total net sale proceeds. Acomparison is once again made between the proposed new property- (s)and the current as-is situation. The next comparison made is between therefinance and reinvest; and the sell and reinvest strategies. As mentionedabove a combination of incorporating both strategies will also be analyzed.The result is that the optimum allocation of invested capital (equity) is foundto maximize overall leveraged returns. All relevant tax basis, depreciation anddebt/loan issues are carefully examined and considered. And mostimportantly, all strategic options analyzed and recommended will beconsistent with an investor’s goals and risk/return tolerance.We recommend this type of analysis annually; the market andopportunities are ever changing. Owning investment real estate is adynamic situation.Realty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

EXAMPLE: Investment Property Analysis (IPA) Report ForewordPrepared for XYZ Client – January XX, 20XXIntroductionWe have found by first introducing the key elements, findings andconclusions of the IPA report in a prelude narrative better facilitates theunderstanding of the specific conceptions and “strategic actions” beingpresented and recommended in each of the report sections to follow.The financial-investment summary below will be supported later in this report.General Comments(Current holding-s “as-is” summary and assessment)Moreover, since future appreciation is always somewhat subjective, RealtyYield likes to first evaluate any investment real estate holding-s on theobjective return metrics first. That is; cash flow, income tax implications onoperating income and the effect on yield of any loan in place (leverage).These calculations are just math and can be more accurately assessed andprojected.As is typically found with owners of smaller multi-plex rentals the followingwas calculated and concluded with the data provided:Pre-Tax Cash Flow:Analyzed properties are cumulatively generating 4.52% on investedcapital/equity (best-case projections). SEE ANALYSIS.For the most part, your multi-plexes are performing like the "norm", that isAfter-Tax Cash Flow:returns are in line with what other investors are realizing with similarThe net operating income is being taxed at investor-s effective tax rate,holdings. The challenge for investors with significant capital/equity inlessening after-tax returns, projected to be 3.83%. The absence of almostsmaller income-properties is that though positive cash flow is beingany interest expense deduction and nominal depreciation remaining aregenerated, the CASH-ON-CASH return (%) on invested capital is typically lowthe main factors. SEE ANALYSIS.single digits. And, depending on the effective tax rate of the investor, theafter-tax return on cash flow is almost always to some degree even lower.Debt/Loan Impact:The low level of debt (LTV 4.2%), hence no leverage in play (positive,In the current market to realistically realize annualized double-digit returnsneutral or negative) equates too little impact on either pre-tax, after-tax oron smaller income-properties would require strong year-over-yeartotal leverage returns. After-tax returns after factoring pay-down onappreciation (minimum 3%) plus some level of structured leverage (loans inprincipal are projected at 4.12%. SEE ANALYSIS.place). The math is straightforward. With smaller income-properties,investors usually must make a strategic choice whether cash-flow ORAppreciation Projections:growth of capital/equity is the primary goal, it is just not arithmeticallyAn annual rate of 3.0% is subjectively being projected for the next five-5probable to optimize/maximize both at the same time. The exception wouldyears. Based on this assumption, overall projected leveraged returns onbe if current loan rates were low enough that the loan constant is less than thecurrent holdings “as-is” are projected at 7.25% (and per above, 4.12% notcalculated capitalization rate on a given property (very unlikely on smallerfactoring appreciation). SEE ANALYSIS.multi-plexes).Realty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

EXAMPLE: Investment Property Analysis (IPA) Report ForewordThe OpportunityFor investors with enough capital/equity for real estate investment (typically 250,000 /- minimum, 350,000 ideal), there are usually better options thansingle-family rentals and/or small multi-plexes. Better balance across the 4-engines that drive overall returns becomes not only feasible but readily doablewith proper strategic planning and execution. The simple fact is that larger multi-family properties (apartment buildings), mixed-use properties and retailbuildings sell/trade at capitalization rates that offer investors’ greater yield assuming sufficient capital is available for investment (many/most investorssimply don’t have the capital to buy these properties). When combined with the prudent use of leverage, real estate investment returns can likely besignificantly accelerated over the current “as-is” position.There are basically two primary options identified that would improve both overall investment returns and cash flow. These would be:1. Sell existing properties and reinvest in higher yielding properties (1 or more). By investing in replacement properties with higher capitalization rates (allcash return comparison metric), incorporating positive leverage (loan rates/loan constant lower than cap rates), structuring with greater tax advantageand owning more value in property (appreciation upside) improved performance of invested capital/equity can reasonably be forecasted.Based on the data provided, the net improvement (over current) is projected as follows (SEE ANALYSIS):Pre-TaxCash FlowChange ( /-)42,061 3.19%After-TaxCash FlowChange ( /-)38,604 2.90%After-TaxCash Flow ( ) Pay DownChange ( /-) 86,704 6.13%TotalProjected ReturnChange ( /-)170,704 12.0%* The specifics and particulars of reallocating current invested equity/capital to generate the above projected return progresses will be covered in the reportpages to follow and financial/investment analysis completed.2.Leverage current properties and reinvest cash-out into additional properties. What is lost in cash-flow on current properties (due to servicing newloans) would be more than made-up in generated cash-flow from new properties. Plus, by increasing the total value of real estate owned, anyappreciation would accelerate the growth on invested capital (net wealth gain). Finally, there would be incremental tax benefits realized throughmore favorable interest expense deductions and the depreciation of new properties.NOTE: This report does not cover this scenario (option 2). It is this adviser’s opinion that option 2 would improve overall returns from the current hold (“asis”) position. However, option 1 would likely generate superior returns and be easier and less “hands-on” to oversee as owners. This option (2.) wouldrequire ongoing management of existing properties as you are doing today versus option 1 that has the expense of full professional property managementfactored in the projections.Realty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Investment Property Analysis (IPA) Wealth Building SummaryPrepared For: XYZ Client - As of January 20XXCURRENT REAL ESTATE HOLDINGS SUMMARY (4 Analyzed Properties): Approximate Total Current Value 1,700,000 Approximate Total Current Equity (Invested Capital) 1,629,142 Approximate Total Current Debt 70,858LTV 4.2%CURRENT PROPERTY PORTFOLIO PERFORMANCE SUMMARY & PROJECTIONS:(1-YEAR PROJECTION on Total Current Equity (Invested Capital)After-TaxTotalCash FlowPre-TaxAfter-TaxCash FlowProjected ReturnProposed(cash-on-cash)Cash Flow( ) Pay Down(@ 3.0% n BalanceEquityLTV1) 4-Plex NE XXth 650,000 0 650,0000.0%35,481 5.46%30,107 4.63% 30,107 4.63%49,607 7.63%SELL2) Tri-Plex NE XXth 400,000 0 400,0000.0%18,434 4.61%15,895 3.97% 15,895 3.97%27,895 6.97%SELL3) 4-Plex SE XXth Ave. 500,000 0 500,0000.0%23,627 4.73%19,692 3.94% 19,692 3.94%34,692 6.94%SELL 1,368 1.73%5,868 7.41%SELL 67,062 4.12%118,062 7.25%Property Description4) Condo W. BurnsideTOTALSTRATEGIC OPTION #: 150,000 70,858 79,14247.2% 1,700,000 70,858 1,629,1424.2%(3,976) -5.02%73,566 4.52%(3,363) -4.25%62,331 3.83%1PROJECTED PROPERTY PORTFOLIO PERFORMANCE SUMMARY (after reallocation of equity/capital) :(1-YEAR PROJECTION on Reinvestment of Equity Capital of Approximately 1,500,000*)* 1.5 million would be the approx. net proceeds available after the sale of properties marked "SELL" above, less 7% in sale costs, less est. loan fees/closing costs on acquisition-s.LoanProperty DescriptionRepresentative Multi-familyAfter-TaxTotalCash FlowPre-TaxAfter-TaxCash FlowProjected Return(cash-on-cash)Cash Flow( ) Pay Down(@ 3.0% Appreciation)Approx.AmountApprox.Valueor BalanceEquityLTV 4,500,000 3,000,000 1,500,00066.7%115,627 7.71%100,935 6.73% 153,766 10.25% 288,766 19.25% 4,500,000 3,000,000 1,500,00066.7%115,627 7.71%100,935 6.73% 153,766 10.25% 288,766 19.25%and/or Mixed-use properties(6.25% Cap @ 66.7% LTV)TOTALCOMPARISON OF CURRENT (as-is) VERSUS PROJECTED (after reallocation of equity/capital) - Net Difference ( /-)Approx.LoanApprox.ValueAmountEquityChange ( /-) Change ( /-) Change ( /-) 2,800,000 2,929,142- 129,142LTV( /-)62.5%Pre-TaxAfter-TaxAfter-TaxTotalCash FlowCash FlowCash Flow ( ) Pay DownProjected ReturnChange ( /-)42,061 3.19%Change ( /-)38,604 2.90%Change ( /-) 86,704 6.13%Change ( /-)170,704 12.00%Realty Yield Your One-Stop Investment Real Estate Service Provider Portland Bend, Oregon 503-303-8393 [email protected] RealtyYield.comBUY

Multi-Plex Property Investment Analysis"QUICK VIEW" INVESTMENT ANALYSIS (including Partnership scenario, if applicable) - As of January, XXXXPROPERTY DESCRIPTION:NE XXth, Portland, ORMonth/Yr. Acquired: Yrs. Owned:Jan-9520.0Price Paid: Est. Current Value: 180,000 650,000Est. Current Equity: Loan to Value: 650,0000.0%6.6%Annual Compounded Apprec. Rate:# of Units: Value Per Unit:4 162,500GRM 12.75CAP RATE (CURRENT) 5.34%Operating Expenses & Reserves:Year-1 Marginal Tax Calculation (general analysis):Property Taxes: 6,000Net Operating Income 35,481Property Insurance: 1,200Less: Depreciation Expense( 8,612)Owner Paid Utilities: 4,400Less: Interest ExpenseRepairs, Maintenance & Related: 3,598 Taxable IncomeGross Rent-s (mo. Avg.): 4,250Monthly Income (other): 258Capital/Replacement Reserves & Misc.:5.0%INVESTOR (est. "effective" tax rate):Tax Rate (general analysis) 753,528Tax Rate (investor specific)Annual Depreciation Expense (est.):Projected Value 5 Years:Year-1Proj. Annual Value Change ( /-): 500HOA & Misc., if applicable: 8,612Vacancy/Credit Loss Allowance:Year-23.0%PROJ CAP RATE (5 YRS) 5.15%3.0%Year-33.0%Year-4Est. Effective Tax Rate 1,000G20%15%Year-53.0%20%Income Taxes Saved (Paid)P24% 0 26,869CURRENT INCOME & EXPENSE DATA (annual)Effective Gross Income: 51,395Operating Expenses( 16,698)Net Operating Income: 34,697Proj. /- (%): EGI Expenses3.0%( 5,374)1-YEAR PROJECTION (on current equity)2.5%3.0%5-YEAR PROJECTION (on current equity)Loan Data (1)50.00%50.00%Loan Data (1)50.00%50.00%Effective Gross Income (Rents Other Income - Vacancy/Credit Loss): 52,680 26,340 26,340 276,903 138,451 138,451Total Operating Expenses & Reserves:( 17,199)( 8,599)( 8,599)( 91,312)( 45,656)( 45,656)Net Operating Income (EGI less Total Expenses & Reserves): 35,481 17,740 17,740 185,591 92,796 92,796 0 0 0 0 0 0 35,481 17,740 17,740 185,591 92,796 92,796( 5,374)( 3,224)( 2,015)( 28,506)( 17,104)( 10,690)(2) After Tax Cash Flow-( ): 30,107 14,516 15,725 157,085 75,692 82,106(3) After Tax Cash Flow Plus Principal Pay Down-( ): 30,107 14,516 15,725 157,085 75,692 82,106 19,500 9,750 9,750 103,528 51,764 51,764 49,607 24,266 25,475 260,613 127,456 133,870(1) Pre-Tax Cash Return on Current Equity-(%):5.46%5.46%5.46%28.55%28.55%28.55%(2) After-Tax Cash Return on Current Equity-(%):4.63%4.47%4.84%24.17%23.29%25.26%(3) After-Tax Return Plus Principal Pay Down on Current Equity-(%):4.63%4.47%4.84%24.17%23.29%25.26%(4) Total Return (After-Tax Return Principal Pay Down %End Yr.Less Debt Service (see Loan Information below):(1) Pre Tax Cash Flow-( ):Income Taxes Saved (Paid):see above: Rate (general analysis)Projected Appreciation-( ):(4) Total Return (After-Tax Return Principal Pay Down Appreciation)-( ):LOAN INFORMATION (1st Year Summary):(1) Loan DataLoanOrig. LoanInterestAmort.Months LeftMonthlyAnnualEnd Yr. Loan1 Year1 YearProj. End Yr.Orig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%300 0 0 0 0 0 669,5000.00%LoanOrig. LoanInterestAmort.Months LeftMonthly5 YearLoan5 Year5 YearProjectedProjectedOrig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%30-60 0 0 0 0 0 753,5280.00%LOAN INFORMATION (5 Year Summary):Realty Yield Your One-Stop Investment Real Estate Service Provider Portland Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Multi-Plex Property Investment Analysis"QUICK VIEW" INVESTMENT ANALYSIS (including Partnership scenario, if applicable) - As of January, XXXXPROPERTY DESCRIPTION:NE XXth, Portland, ORMonth/Yr. Acquired: Yrs. Owned:Jan-9520.0Price Paid: Est. Current Value: 120,000 400,000Est. Current Equity: Loan to Value: 400,0000.0%6.2%Annual Compounded Apprec. Rate:# of Units: Value Per Unit:3 133,333GRM 13.07CAP RATE (CURRENT) 4.51%Operating Expenses & Reserves:PROJ CAP RATE (5 YRS) 4.33%Year-1 Marginal Tax Calculation (general analysis): 4,000Property Taxes:Net Operating Income 18,434Less: Depreciation Expense( 5,741)Property Insurance: 900Owner Paid Utilities: 2,870Less: Interest ExpenseRepairs, Maintenance & Related: 2,974 Taxable IncomeGross Rent-s (mo. Avg.): 2,550HOA & Misc., if applicable: 200Est. Effective Tax RateMonthly Income (other): 58Capital/Replacement Reserves & Misc.: 750Income Taxes Saved (Paid)5.0%INVESTOR (est. "effective" tax rate): 5,741Tax Rate (general analysis) 463,710Tax Rate (investor specific)Vacancy/Credit Loss Allowance:Annual Depreciation Expense (est.):Projected Value 5 Years:Proj. Annual Value Change ( 3.0%3.0%3.0%15% 0 12,69320%( 2,539)CURRENT INCOME & EXPENSE DATA (annual)Effective Gross Income: 29,735Operating Expenses( 11,694)Net Operating Income:Proj. /- (%): EGI Expenses1-YEAR PROJECTION (on current equity) 18,0412.5%3.0%5-YEAR PROJECTION (on current equity)Loan Data (1)50.00%50.00%Loan Data (1)50.00%50.00%Effective Gross Income (Rents Other Income - Vacancy/Credit Loss): 30,478 15,239 15,239 160,204 80,102 80,102Total Operating Expenses & Reserves:( 12,045)( 6,022)( 6,022)( 63,948)( 31,974)( 31,974)Net Operating Income (EGI less Total Expenses & Reserves): 18,434 9,217 9,217 96,257 48,128 48,128 0 0 0 0 0 0 18,434 9,217 9,217 96,257 48,128 48,128( 2,539)( 1,523)( 952)( 13,510)( 8,106)( 5,066)(2) After Tax Cash Flow-( ): 15,895 7,694 8,265 82,746 40,022 43,062(3) After Tax Cash Flow Plus Principal Pay Down-( ): 15,895 7,694 8,265 82,746 40,022 43,062 12,000 6,000 6,000 63,710 31,855 31,855 27,895 13,694 14,265 146,456 71,877 74,917(1) Pre-Tax Cash Return on Current Equity-(%):4.61%4.61%4.61%24.06%24.06%24.06%(2) After-Tax Cash Return on Current Equity-(%):3.97%3.85%4.13%20.69%20.01%21.53%(3) After-Tax Return Plus Principal Pay Down on Current Equity-(%):3.97%3.85%4.13%20.69%20.01%21.53%(4) Total Return (After-Tax Return Principal Pay Down %End Yr.Less Debt Service (see Loan Information below):(1) Pre Tax Cash Flow-( ):Income Taxes Saved (Paid):see above: Rate (general analysis)Projected Appreciation-( ):(4) Total Return (After-Tax Return Principal Pay Down Appreciation)-( ):LOAN INFORMATION (1st Year Summary):(1) Loan DataLoanOrig. LoanInterestAmort.Months LeftMonthlyAnnualEnd Yr. Loan1 Year1 YearProj. End Yr.Orig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%300 0 0 0 0 0 412,0000.00%LoanOrig. LoanInterestAmort.Months LeftMonthly5 YearLoan5 Year5 YearProjectedProjectedOrig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%30-60 0 0 0 0 0 463,7100.00%LOAN INFORMATION (5 Year Summary):Realty Yield Your One-Stop Investment Real Estate Service Provider Portland Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Multi-Plex Property Investment Analysis"QUICK VIEW" INVESTMENT ANALYSIS (including Partnership scenario, if applicable) - As of January, XXXXPROPERTY DESCRIPTION:SE XXth Ave., Portland, ORMonth/Yr. Acquired: Yrs. Owned:Price Paid: Est. Current Value:Est. Current Equity: Loan to Value:Jan-8827.0 72,000 500,000 500,0000.0%7.4%Annual Compounded Apprec. Rate:# of Units: Value Per Unit:4 125,000GRM 10.16Operating Expenses & Reserves:Year-1 Marginal Tax Calculation (general analysis): 9,000Net Operating Income 23,627Property Insurance: 1,400Less: Depreciation Expense( 3,952)Owner Paid Utilities: 7,000Less: Interest ExpenseRepairs, Maintenance & Related: 4,674 Taxable Income 4,100Monthly Income (other): 0Capital/Replacement Reserves & Misc.:Projected Value 5 Years:Proj. Annual Value Change ( /-): 500HOA & Misc., if applicable:5.0%INVESTOR (est. "effective" tax rate): 3,952Tax Rate (general analysis) 579,637Tax Rate (investor specific)Annual Depreciation Expense (est.):PROJ CAP RATE (5 YRS) 4.41%Property Taxes:Gross Rent-s (mo. Avg.):Vacancy/Credit Loss Allowance:CAP RATE (CURRENT) 4.63%Est. Effective Tax Rate %3.0%3.0%20%Income Taxes Saved (Paid)P24% 0 19,67515%( 3,935)CURRENT INCOME & EXPENSE DATA (annual)Effective Gross Income: 46,740Operating Expenses( 23,574)Net Operating Income:Proj. /- (%): EGI Expenses1-YEAR PROJECTION (on current equity) 23,1662.5%3.0%5-YEAR PROJECTION (on current equity)Loan Data (1)50.00%50.00%Loan Data (1)50.00%50.00%Effective Gross Income (Rents Other Income - Vacancy/Credit Loss): 47,909 23,954 23,954 251,823 125,911 125,911Total Operating Expenses & Reserves:( 24,281)( 12,141)( 12,141)( 128,912)( 64,456)( 64,456)Net Operating Income (EGI less Total Expenses & Reserves): 23,627 11,814 11,814 122,911 61,455 61,455 0 0 0 0 0 0 23,627 11,814 11,814 122,911 61,455 61,455( 3,935)( 2,361)( 1,476)( 20,630)( 12,378)( 7,736)(2) After Tax Cash Flow-( ): 19,692 9,453 10,338 102,280 49,077 53,719(3) After Tax Cash Flow Plus Principal Pay Down-( ): 19,692 9,453 10,338 102,280 49,077 53,719 15,000 7,500 7,500 79,637 39,819 39,819 34,692 16,953 17,838 181,917 88,896 93,537(1) Pre-Tax Cash Return on Current Equity-(%):4.73%4.73%4.73%24.58%24.58%24.58%(2) After-Tax Cash Return on Current Equity-(%):3.94%3.78%4.14%20.46%19.63%21.49%(3) After-Tax Return Plus Principal Pay Down on Current Equity-(%):3.94%3.78%4.14%20.46%19.63%21.49%(4) Total Return (After-Tax Return Principal Pay Down %End Yr.Less Debt Service (see Loan Information below):(1) Pre Tax Cash Flow-( ):Income Taxes Saved (Paid):see above: Rate (general analysis)Projected Appreciation-( ):(4) Total Return (After-Tax Return Principal Pay Down Appreciation)-( ):LOAN INFORMATION (1st Year Summary):(1) Loan DataLoanOrig. LoanInterestAmort.Months LeftMonthlyAnnualEnd Yr. Loan1 Year1 YearProj. End Yr.Orig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%300 0 0 0 0 0 515,0000.00%LoanOrig. LoanInterestAmort.Months LeftMonthly5 YearLoan5 Year5 YearProjectedProjectedOrig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVN/A 00.000%30-60 0 0 0 0 0 579,6370.00%LOAN INFORMATION (5 Year Summary):Realty Yield Your One-Stop Investment Real Estate Service Provider Portland Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Single-Family Property Investment Analysis"QUICK VIEW" INVESTMENT ANALYSIS (including Partnership scenario, if applicable) - As of January, XXXXPROPERTY DESCRIPTION:Condo West Burnside, Portland, ORMonth/Yr. Acquired: Yrs. Owned:Feb-112.0Price Paid: Est. Current Value: 105,000 150,000Est. Current Equity: Loan to Value: 79,14247.2%19.5%Annual Compounded Apprec. Rate:# of Units: Value Per Unit:1GRM 10.00Operating Expenses & Reserves: 500Property Insurance: 6,400( 3,818)Less: Interest Expense( 2,662) Taxable Income( 3,063)Misc., if applicable: 500Est. Effective Tax Rate 250Income Taxes Saved (Paid)Monthly Income (other): 0Capital/Replacement Reserves & Misc.:Proj. Annual Value Change ( /-): 3,417Less: Depreciation Expense 713 1,250Projected Value 5 Years:Net Operating IncomeRepairs, Maintenance & Related:Gross Rent-s (mo. Avg.):5.0%INVESTOR (est. "effective" tax rate): 3,818Tax Rate (general analysis) 173,891Tax Rate (investor specific)Annual Depreciation Expense (est.):PROJ CAP RATE (5 YRS) 2.03%Year-1 Marginal Tax Calculation (general analysis): 2,500Property Taxes:Owner Paid Utilities HOA: 150,000Vacancy/Credit Loss Allowance:CAP RATE (CURRENT) %3.0%PG20%24%15%20% 613CURRENT INCOME & EXPENSE DATA (annual)Effective Gross Income: 14,250Operating Expenses( 10,863)Net Operating Income:Proj. /- (%): EGI Expenses1-YEAR PROJECTION (on current equity) 3,3872.5%3.0%5-YEAR PROJECTION (on current equity)Loan Data (1)50.00%50.00%Loan Data (1)50.00%50.00%Effective Gross Income (Rents Other Income - Vacancy/Credit Loss): 14,606 7,303 7,303 76,775 38,388 38,388Total Operating Expenses & Reserves:( 29,702)( 11,189)( 5,594)( 5,594)( 59,403)( 29,702)Net Operating Income (EGI less Total Expenses & Reserves): 3,417 1,709 1,709 17,372 8,686 8,686Less Debt Service (see Loan Information below): 7,393 3,697 3,697 36,965 18,483 18,483(1) Pre Tax Cash Flow-( ):( 3,976)( 1,988)( 1,988)( 19,593)( 9,797)( 9,797) 613 368 230 2,618 1,571 982(2) After Tax Cash Flow-( ):( 3,363)( 1,620)( 1,758)( 16,976)( 8,226)( 8,815)(3) After Tax Cash Flow Plus Principal Pay Down-( ): 1,368 745 607 8,619 4,571 3,982 4,500 2,250 2,250 23,891 11,946 11,946(4) Total Return (After-Tax Return Principal Pay Down Appreciation)-( ): 5,868 2,995 2,857 32,510 16,517 15,928(1) Pre-Tax Cash Return on Current (2) After-Tax Cash Return on Current (3) After-Tax Return Plus Principal Pay Down on Current Equity-(%):1.73%1.88%1.53%10.89%11.55%10.06%(4) Total Return (After-Tax Return Principal Pay Down %End Yr.Income Taxes Saved (Paid):see above: Rate (general analysis)Projected Appreciation-( ):LOAN INFORMATION (1st Year Summary):(1) Loan DataLoanOrig. LoanInterestAmort.Months LeftMonthlyAnnualEnd Yr. Loan1 Year1 YearProj. End Yr.Orig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVFeb-11 84,0003.875%15144 616 7,393 66,127 4,731 2,662 88,37342.80%LoanOrig. LoanInterestAmort.Months LeftMonthly5 YearLoan5 Year5 YearProjectedProjectedOrig. DateAmountRateTermOn LoanPaymentPaymentBalancePay DownInt. Exp.EquityLTVFeb-11 84,0003.875%1584 616 36,965 45,263 25,595 11,370 128,62826.03%LOAN INFORMATION (5 Year Summary):Realty Yield Your One-Stop Investment Real Estate Service Provider Portland Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Realty Yield RecommendationsCommunicated Client Goals & Real Estate Investment ObjectivesClient has communicated an interest in BOTH improving real estate investment returns AND taking a more passive role in the day-to-day propertymanagement of owned properties. Client has a low risk tolerance.Projected Performance (Investment Returns) of Current Real Estate HoldingsBased on the property acquisition and operating data provided, Realty Yield is projecting the following (1-YEAR PROJECTION):Realty Yield RecommendationSeveral factors are present with currently owned properties that make improving overall returns and cash-flow readily doable. Plus, by reallocating capital(equity) to larger properties, professional management is factored relieving owner of day-to-day property management. Sum of capital (equity) spread across several smaller investment properties should be pooled to acquire a property-s yielding higher returns(apartments, mixed-use and/or retail). Realty Yield recommends replacement property-s have a value total of somewhere between 3,000,000(minimum) and 4,500,000 (example next page).SEE ANALYSIS OF REPRESENTATIVE MARKET “EXAMPLE” TO FOLLOW. Introduce some level of leverage (secure loan-s on replacement property-s). Low current borrowing costs afford prudent investors manyadvantages; owning more value in property (potential for accelerated capital growth), improved cash-flow (positive leverage) and tax advantagesthrough interest expense and depreciation deductions.SEE ANALYSIS OF REPRESENTATIVE MARKET “EXAMPLE” TO FOLLOW. Realty Yield recommends any ownership of investment real estate be via LLC /like mitigate liability/risk exposure.NOTE: Please refer-back to Investment Property Analysis (IPA) Wealth Building SummaryRealty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com

Multi-Family (Apartments) Investment Analysis (Representative Example

EXAMPLE: Investment Property Analysis (IPA) Report Foreword Realty Yield Your One-Stop Investment Real Estate Service Provider Portland & Bend, Oregon 503-303-8393 [email protected] RealtyYield.com Prepared for XYZ Client – January XX, 20XX Introduction We have