What is planEASe?

planEASe is a financial analysis software program designed to work from your desktop that analyzes the cash flow of commercial real estate investments, developments, leases, exchanges, loans, etc. Along with creating discounted cash flow measures like IRR, MIRR and NPV, planEASe computes and shows ratios such as cash on cash, cap rate, debt coverage ratio, and many more, all with beautiful reports and graphs.

• Sample Report (Retail Investment) ..... More PDF Samples
• Printable Brochure (PDF)
• Suggestions for Evaluating (PDF)
• Video (2:46 Minute): planEASe financial analysis software Commercial
• Video (2:20 Minute): Why to download the planEASe Trial Software?

planEASe is the most comprehensive, easy to use and sophisticated real estate analysis product on the market today. For simple properties planEASe is fast and accurate. Yet the same planEASe system can handle commercial retail development with as many tenants as you need, with accurate reimbursements and re-leasing assumptions --- all After Tax!

The beautiful reports and graphs planEASe produces will excite your customer. Instead of the spreadsheet look of an accounting program, planEASe helps you stand out. Many options produce reports (and graphs) that speak to your customer.

Every planEASe report can be saved as a web page (html format) to be sent to anyone with a web browser. Just keep appending all the reports you want to one web page file for one complete web page (beautifully formatted in colors of your choice).

planEASe comes with step-by-step screen shot tutorials and training movies for each type of analysis in this brochure. Many of the numbers are entered in a process so simple that customers have remarked 'that's how I would write it on a piece of paper'.

All spreadsheets and calculators will produce IRR's and so on. The difference is how accurate are the cash flows that the IRR is using. planEASe will create all development draw loans correctly After Tax from your spending. You can design renewal probabilities for leases that go to market with Commissions, TI's, and Reimbursements all handled automatically After Tax. The 'What-If' Capabilities that you can create in planEASe are unparalleled by any spreadsheet.

Having all the Construction Draw Loans created from your Development Spending items After Tax is not only faster and more accurate - fewer mistakes are possible. Using profiles for re-leasing, means fewer assumptions control many leases among other things.

Sure, varying the property price is sensitivity analysis. planEASe Sensitivity Analysis is so much better because of the linking of the assumptions. For instance, vary the Renewal Probability in one profile, and all the leases that go to market with that profile vary, varying the reimbursements, thence varying NOI, thence varying the loan amount (based on DCR in year 5), thence varying loan points and deductions, etc, etc. Vary a Development Spending item, and the Construction Draw Loan varies, varying the Construction Period Interest, varying the Depreciation of both the Interest and Spending item etc, etc. Many examples are shown in the brochure (with the automatic graphs produced with every Sensitivity Analysis).

Investments:

• Apartments
• Self Storage
• Moblie Home Parks
• Marina Slips
• Retail
• Shopping Centers
• Single Tenant
• Office
• Medical Office
• Office
• Industrial

Developments:

• Apartments
• Self Storage
• Moblie Home Parks
• Marina Slips
• Retail
• Shopping Centers
• Single Tenant
• Office
• Medical Office
• Office
• Industrial
• Land
• Condo
• Condo Conversion
• Subdivision

User Decision Analysis:

• Tenant Representation
• Owner Representation
• Lease vs. Buy
• Cost Comparison
• SaleLeaseback

Also Featuring:

• Partnerships
• LLC
• 1031 Exchanges
• Participating Loans
• Installment Sales
• Loan Comparison

Internal Rate of Return (IRR) Considers:

• All assumptions entered such as: Scheduled Income, Purchase Price, Down Payment, Current Debt Payment, Vacancies, Expenses, Property Taxes, Lease terms, Revenue Growth, Rent Control, Expense Growth, Property Tax Growth, Deferred Maintenance, Debt Amount (Ratio), Interest Rate, Interest Rate Changes, Payment Changes, Points, Prepayment Penalties, Depreciation, Capital Expenditures, Income Taxes, $25,000 Exemption, Passive Losses, Appreciation, Capital Gains Tax ... and all other entered assumptions.

Internal Rate of Return (IRR) Ignores:

• Only assumptions not entered

Why is Internal Rate of Return IRR useful?

The nature of the NPV is that it takes everything into account that made up the cash flow. The only weakness is that it is hard to calculate (not with planEASe of course), and that it uses all the assumption values (so, in turn, you are required to enter these assumptions, which means more work on your part).

Learn more about the IRR

The Internal Rate of Return IRR is shown in these planEASe reports:

• Basic Analysis (IRR, NPV, MIRR)
• Sensitivity Analysis ('What if')
• Risk Analysis (Monte Carlo Simulation)
• Proforma Income Statements
• Annual Statements
• Cash Flow Analysis

Net Present Value NPV Considers:

• All assumptions entered such as: Scheduled Income, Purchase Price, Down Payment, Current Debt Payment, Vacancies, Expenses, Property Taxes, Lease terms, Revenue Growth, Rent Control, Expense Growth, Property Tax Growth, Deferred Maintenance, Debt Amount (Ratio), Interest Rate, Interest Rate Changes, Payment Changes, Points, Prepayment Penalties, Depreciation, Capital Expenditures, Income Taxes, $25,000 Exemption, Passive Losses, Appreciation, Capital Gains Tax ... and all other entered assumptions

Net Present Value NPV Ignores:

• Only assumptions not entered

Why is Net Present Value NPV useful?

NPV is the foundation of the discounted cash flow (DCF) process. With NPV you enter a discount rate which is the yield you would like to get. The NPV is the amount you need to adjust the beginning amount (ie purchase) by to equal that yield. The nature of the NPV is that it takes everything into account that made up the cash flow. The only weakness is that it is hard to calculate (not with planEASe of course), and that it uses all the assumption values (so, in turn, you are required to enter these assumptions, which means more work on your part).

Learn more about the NPV

The Net Present Value NPV is shown in these planEASe reports:

• Basic Analysis (IRR, NPV, MIRR)
• Lease Analysis (PV, Rentable Square Feet)
• Sensitivity Analysis ('What if')
• Risk Analysis (Monte Carlo Simulation)
• Proforma Income Statements
• Annual Statements
• Cash Flow Analysis

Considers: Down Payment, Scheduled Income (Current Year Only), Debt Payment (Current Year Only), Vacancies (Current Year Only), Expenses (Current Year Only)

Ignores: Time Value of Money , Sale Proceeds, Loan Balance repayments, Other Years NOI and Debt Service.

... and a lot of other things

Why is Cash on Cash useful?

Cash on Cash is a very popular ratio in commercial investment real estate, and is typically produced in most investment analysis. I like to think of the Cash on Cash ratio as telling me how much cash I receive on my cash investment. Because the Cash on Cash ratio takes financing into account, the investment used in the calculation is how much the owner had to invest of his own money, and the cash received is the amount less the debt payment, which is the amount the owner actually gets. For this reason the ratio can be really helpful when the owner is looking for an investment that to produce income during the period that it is owned.

A good example might be an investor who has decided to move from one property to another through the exchange process to avoid the capital gain taxes from a sale. In this case, the owner is probably more interested in the amount of yearly income that will be produced by the new property rather than any appreciation (although having both is best). In this case the Cash on Cash ratio is very helpful when comparing alternatives.

However, since the ratio does not take into account the amount of sale proceeds or losses or Time Value of Money', it, in essence, assumes that you receive your exact cash investment back at the end of the investment. This of course is never true. If you did sell your property in one year or any year after the sale price will almost certainly be different (hopefully higher), and there will be costs involved in the sale.

Learn more about the Cash on Cash

Considers:

• Price, Scheduled Income(Current Year Only), Vacancies (Current Year Only), Expenses (Current Year Only)

Ignores:

• Time Value of Money, Sale Proceeds, All Financing (Loans), Other Years NOI, All Taxes
  
  ... and a lot of other things

Why is Capitalization Rate useful?

The Cap Rate is a core ratio in commercial real estate investments and is very useful because it is so simple. All you really need is a reliable 1-year Net Operating Income (NOI) number. For this reason it is often used to create a beginning purchase price and ending sale price. Also, it can be used as a Return on Investment (ROI) or Profitability Ratio as shown in the example above.

Learn more about the Capitalization Rate

Considers: Scheduled Income, Vacancies (Current Year Only), Expenses (Current Year Only), Debt Payment (Current Year Only)

Ignores: Time Value of Money, Sale Proceeds, Loan Balance repayments, Other Years NOI and Debt Service.

... and a lot of other things

Why is Debt Coverage Ratio (DCR) useful?

The Debt Coverage Ratio is very commonly used in real estate investment analysis where leverage is used. Loan, Debt, Debt Service, Financing, Leverage all mean receiving money with a repayment plan with the property or more as collateral. There are so many different ways to structure a loan that I won't begin to go through the different methods, but they all have a loan amount and debt service. The institution usually uses two methods to figure out how much to loan on a commercial real estate property. Loan to Value (LTV) and Debt Coverage Ratio (DCR), and usually picks the method that creates the lowest initial loan amount. The Loan to Value is based of a percentage of the purchase price. The Debt Coverage Ratio creates a ratio that represents how much net operating income there is to cover the debt created by all the loans on the property.

Learn more about the Debt Coverage Ratio