Rental Agreements.

[CANative]

Eggzactly. A lot of appraisers have gotten in trouble over the years for not making these distinctions.

PS - I would usually favor a DCF for the situation you describe because it's easier to show the moving parts in each year individually. But the result will be about the same.

I did one initially but after getting into it more I came to a different conclusion about a final phase that had been scrapped due to excessive costs of grading and earth moving.

 

[Mountain Man]

That is one cool spreadsheet.

 

[CANative]

lol... It's my one-size-fits-all spreadsheet. Denis Desaix helped with it a long time ago. We used a spreadsheet we found in a hotel appraisal.

 

[Mountain Man]

Stealin' like you own it, the appraiser way.
Understand, had ours borrowed too. But, there is one further south that I wish would at least change the fonts.

 

[George Hatch]

The one I use is based off a DCF that was written for Lotus 1-2-3 and was part of a collection of about a dozen analytical worksheets including files for building cap rates via Akerson method and other techniques that nobody uses anymore in real life. Obviously I rewrote it several times in other software formats but it's plenty flexible for up to about 20 leases or so.


As I recall the whole collection of 10 or 12 worksheets cost the shop I was working for something like $400 back in 1988 - we bought it from Dynamic Computing, the company that was also selling appraisal form softare by the piece. $350 each:

DC-Sketch
DC-URAR
DC-Condo
DC-2-4s, etc

You were big time if you owned all of them.

A couple years later, alamode came out with TOTAL and that basically ended the practice of buying formsware piecemeal.