If you are a current user of ProAPOD Executive 10.0 real estate investment software, then you might be interested in knowing that several extra options have been added to the software program that will make your revenue projections more meaningful.
Here’s what we recently added: You are now given the option to “step” the vacancy allowance, income stream, and operating expenses several times over a ten-year period.
In other words, rather than just choosing a “flat” increase that would apply over the course of every year over a ten-year period for each measure, you can now stagger (or step) each measure several times over the course of ten years.
For example, whereas before our real estate investment software would take the vacancy rate you entered on the Expenses form (say 5%) and apply it to each year in the Proforma Income Statement you are now given the option to add two additional “steps” for Vacancy Rate. This is helpful if the property currently has a high vacancy rate (say 15%) but you anticipate a lower rate the following year (say 10%) and a still lower rate for each year after that (say 5%).
The same was true for income and operating expenses. Whereas before you would tell the program to inflate the current value of income and expenses say 3% annually, which ProAPOD in turn did over the course of each future year, you now have the option to add two additional inflation rates for each of those amounts starting in the year that you select. In other words, you might choose to inflate income at 3% for the first 3 years but want it to inflate at 6% beginning in the sixth year, and so on.
You will find this option on the Proforma form. Of course, it is totally optional. If you do not add additional steps, ProAPOD Real Estate Investment Software will just apply whatever appreciation you indicate primarily as a flat amount across-the-board over the course of the Proforma as it always has.
