getting started with valuate
Copyright 2009-2017 by Real Estate Financial Modeling, LLC. All rights reserved.
Creating a new analysis file
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Changing the equity structure
Changing purchase and sale details
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Pasting detailed cash flows into Valuate
Using the home screen
Defining the acquisition loan
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Table of Contents
User interface overview
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Setting the waterfall structure
Welcome to Valuate
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2 LOREM.COM/MAGAZINE
The Valuate login screen at app.getrefm.com
welcome to valuate
When you first log in to your Valuate account, you will be automatically placed onto your account dashboard. Don’t be overwhelmed! There are guides to help you, and this document will also help orient you. Read on!
Header navigation bar - the main navigation of the application, with buttons for the individual main input screens, reports, file actions and account management Screen, page or tab - each of the main screens of Valuate, accessed primarily via the the header navigation bar: Dash (Dashboard) Home (unlevered analysis) Levered Analysis Cash Flow Purchase/Sale Sources of Funds Reports. Box - any of the rectangular boxed components of a page, such as the Sale box Input field - any field into which a bold blue input is made, whether numeric or text. Input fields also include selectable “radio buttons†(though they are not blue) and drop-down menus
user interface overview
using the HOME SCREEN
The Home screen brings together key inputs and calculations, allowing you to quickly explore various settings for the property you are analyzing. You can change input values presented in bold blue by clicking in the input field, entering a new value, then pressing the Tab or Enter keyboard keys, or by clicking the Enter button. For example, in the Unlevered Summary table, you can change the Cap Rate values.
creating a new analysis file
Creating a new file is simple: Click the File menu item at the top of the application Select New from the menu that drops down, and then select File from the sub-menu that fans out to the left Follow the steps on the New File screen
pasting DETAILED cash flows into valuate
(scroll down to see the full directions) To run a Detail Load analysis in Valuate, you need to paste in monthly operating cash flow projections. These can come from either Excel or ARGUS. If coming from Excel, the cash flows need to be in a particular format for Valuate to be able to digest them. Once they are in the proper format, you can paste them into the cash flow box as part of the new file creation process flow, and then click the orange Submit button. Alternatively, once the file is created, you can paste the cash flows into the cash flow box on the Cash Flow page. If you are taking cash flows directly from ARGUS, generate the monthly property-level operating cash flow report, select the entire area of the report, and copy to the clipboard with Ctrl + C. Then paste into the cash flow box as described above.
Once you’ve uploaded the cash flow details, you will likely want to go to the Purchase/Sale tab to change details such as purchase price and closing costs, sale cap rate and selling costs, etc. A renovation budget can be included or excluded from the loan sizing. By default renovation amounts are included in the loan sizing equation.
changing purchase and sale details
changing the equity structure
On the Sources of Funds tab: Choose One, Two or Three players; for each player, specify a name Use the slider bar to specify the equity percentage for each player, or key in the percentage amounts for each player's "share of total"
setting the waterfall structure
On the Sources of Funds tab: To set the waterfall structure(s), select the Residual Cash Flow Splitting type (Single Residual Split or Multi-Tier Waterfall) and if applicable, specify the number of tiers In the cash flow splits boxes on the right, define the IRR thresholds and promote amounts
(scroll down to see the full directions) On the Sources of Funds tab: To size the senior acquisition loan, use the Debt box on the Sources of Funds page and select the radio button for the desired sizing method (Loan To Value or Debt Service Coverage). The Loan Amount that results from each sizing method appears in the Loan Amount row immediately beneath the Year 1 Debt Service Coverage row. The currently applied loan Amount appears in the tan bar beneath the Loan Amount row. Regardless of the sizing method being applied, validation warning exclamation mark icons will appear if the Loan Amount calculated by the currently selected sizing method exceeds the Loan to Value Test Maximum Loan Proceeds. These warning icons can be suppressed by following the instructions given in the tool tip that appears when you hover your mouse over the warning icon. The Year 1 Debt Service Coverage ratio input in the top-most section of the Debt box is tied to Minimum Debt Service Coverage ratio input in the bottom-most section of the Debt box. Whichever one is updated last, that value will override the value in the other input box.
defining the acquisition loan
To learn more and for video tutorials, visit the valuate support center
