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Argus cash flow modeling?

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shaxton24

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Idaho
Do any commercial appraisers outsource their Argus modeling? I know many brokers do this. Since Argus is such a complex and non-logical program one needs to be well-practiced to use it.

I can provide this service to appraisers - using all of your figures and assumptions. I do very competent, careful work. I am a former commercial appraiser (7 years) and got a lot of practice with Argus while doing acquisitions for a large multi-million dollar investment real estate buyer.

I do believe Argus is accurate and often needed for many big multi-tenant valuations. I have crosschecked the results with my complex Excel model.

I am also very familiar with the limitations of Argus. It is such an unfriendly and unhelpful tool for analysis and presentation of figures that I think most users resort to exporting the output to their own Excel models.
 

PL1957

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Do any commercial appraisers outsource their Argus modeling? I know many brokers do this. Since Argus is such a complex and non-logical program one needs to be well-practiced to use it.
Argus is a piece of cake compared to Dyna and much more user friendly than older programs such as Pro-Ject. (Does Pro-Ject even exist anymore?)
I can provide this service to appraisers - using all of your figures and assumptions. I do very competent, careful work. I am a former commercial appraiser (7 years) and got a lot of practice with Argus while doing acquisitions for a large multi-million dollar investment real estate buyer.
IMO, any appraiser who is including an Argus analysis in their report needs to be versant with the program. Outsourcing the most significant part of your analysis isn't something I would suggest.
 

shaxton24

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Idaho
IMO, any appraiser who is including an Argus analysis in their report needs to be versant with the program. Outsourcing the most significant part of your analysis isn't something I would suggest.[/quote]

Very good point. But an appraiser who is less-practiced with this program could outsource the data input, then check all the Argus model themselves, or check the inputs/assumptions for accuracy and crosscheck results with their other valuation models. This would not be necessary if the program wasn't so illogical and filled with "black boxes". The program truly works the user so much harder than is necessary.
 

Howard Klahr

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Oct 4, 2004
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Certified General Appraiser
State
Florida
shaxton24 said:
This would not be necessary if the program wasn't so illogical and filled with "black boxes". The program truly works the user so much harder than is necessary.

As a user of DCF modeling software going back to the DOS days, I do not agree with your position about Argus being overly difficult at all. It only requires on to have a thorough understanding of the principles involved in DCF anlysis and commercial lease structures.

PL1957 said:
older programs such as Pro-Ject

I do miss the old DOS version as I could enter tenants 5 times faster compred to the windows version of either Pro-Ject or Argus. Altghough I can remeber when it used to take hours to re-calc for downtown office buildings or regional mall projects.
 

PropertyEconomics

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Certified General Appraiser
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New Mexico
IMO, any appraiser who is including an Argus analysis in their report needs to be versant with the program. Outsourcing the most significant part of your analysis isn't something I would suggest.

Very good point. But an appraiser who is less-practiced with this program could outsource the data input, then check all the Argus model themselves, or check the inputs/assumptions for accuracy and crosscheck results with their other valuation models. This would not be necessary if the program wasn't so illogical and filled with "black boxes". The program truly works the user so much harder than is necessary.[/quote]


Being in Idaho its doubful much business will be outsourced to you. Haven't you heard, all outsourcing must be done overseas and perferrably in India or Pakistan. Bummer about your location man.
 

Boonders

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Oct 31, 2006
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Certified General Appraiser
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Iowa
I've heard stories about these old CF programs...they'd recalc before leaving for lunch or an inspection because it took so long.:rof:
 

john snyder

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Michigan
I see where "Report Builder" and Argus are hooking up.

jbs
 

David Bailey

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Texas
The DCF outsourcing is only a bad thing if the appraiser is solely relying upon the expertise of the third-party. But, it's not a bad way to self-check yourself and maybe also learn a thing or two along the way, particularly if you're in a smaller shop and/or don't have opportunity to use it on a regular basis.

As for the Report Builder and Argus relationship, I see plenty of signage on Snapwire's site, but nothing yet on Argus' site.


I've heard stories about these old CF programs...they'd recalc before leaving for lunch or an inspection because it took so long.:rof:

Ah yes, I remember it well. Argus' predecessor (aka Relay) was exactly that...recalc and go to lunch!
 

shaxton24

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Feb 24, 2008
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Real Estate Agent or Broker
State
Idaho
Exactly. Thanks David Bailey for your input!

I would love to work for a startup company and build the ultimate valuation software - 80% of which I would base on Excel!!! Maybe it would be an attachment and work with Excel. We would have to give out the software for free for a while before we could start charging - but this would be feasible because Argus is so bad and so expensive! Users would welcome an alternative with open arms! Any angel-investors want to make run of it??
 
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xm4yb7

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Apr 28, 2006
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General Public
State
Florida
First off, I wish you the best in attempting something new. However, I have to agree with some of the others here. Argus is pretty easy if you take a day or two to learn it. Plus, we have several clients who will not accept a DCF done with anything other than Argus or DYNA. Even if the program was free, we would lose money by not getting assignments because we don’t use Argus.

If you wish to take on a bad service that costs too much, take on CoStar. They are driving me crazy. :)
 
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