Welcome to this video. In this video, I will cover the Executive Summary tab in the ARGUS Multi Family Model. Let’s get into it.
The first section is the basic information. This section contains some basic facts about the property like total net rentable square feet, numbers of units, numbers of units renovated and going-in cap rate. I can see how many units plan to be renovated in the first year and the second year. 100% of the units will be renovated in the next 2 years. This helps me assess potential risk of the property. I can see assumptions in the senior debt, mezz, disposition, and the refinance sections. There are the same assumptions as I fill out in the Input tab.
Return Analysis Section
Moving down to the return analysis section. There are three return profiles: deal level, general partner, and limited partner. I can see the net operating income, cash flow, and cash on cash numbers on the deal level. Important return metrics are IRR, multiple and net profit. Usually, the GP’s IRR and multiple is greater than the deal level’s and the LP’s IRR and multiple is less than the deal level’s because of the way waterfall works. I can also see the promote in each tier.
Everything looks good on the Executive Summary tab. Thanks for watching this video. I will see you in the next one.