| FREQUENTLY ASKED QUESTIONS: Are there recurring charges for using this software? No. We do not charge monthly/annual renewal fees for the software license. You pay one time and one time only. That being said, we are committed to providing ongoing support to our customers as long as they own and use Rental Valuator. What version of Excel is Rental Valuator compatible with? Rental Valuator is compatible with the XP, 2003, and 2007 versions. We recommend you run it on 2007 because all of our future upgrades to the software will be done on this platform, and some may be incompatible with earlier (outdated) versions of Excel. Do I need to have knowledge of Microsoft Excel to use Rental Valuator? Not at all. Rental Valuator is an extremely easy to use software program based in Excel. User inputs are clearly identified and explained. Discount Cashflow Analysis is performed automatically based on user inputs. Sensitivity Analysis is done with a click of one single button, and printing customized reports is just as easy. As long as you have Microsoft Excel installed on your computer (1997 edition or newer), you're all set! What experience level of investor is this software most appropriate for? Rental Valuator will fit the needs of a novice and seasoned investors alike. For someone that is just looking to do a quick comparison of a few properties based on Cap Rates, Cashflow, or a Cash on Cash Return, Rental Valuator provides the "Performance Snapshot" tool. All user inputs and outputs are on one page and the analysis can be performed in matter on seconds. Just as easy to use is the Sensitivity Analysis, which allows users to quickly calculate, among other things, the right price to pay for a property based on their target Cap Rate, or projected Rent- Roll. For the more sophisticated investor that would like to create pro-forma statements, evaluate tax consequences, analyze potential resale value in the future based on various scenarios, and create customized reports and presentations, Rental Valuator provides all the necessary tools with just a few clicks of a mouse. What kind of support will I receive along with my purchase? First and foremost, we offer something that virtually no other software provider (especially ones retailing packages for under $100) offers: a complementary 30-minute walk-through of the software via telephone. Though we feel that Rental Valuator is very easy to use and comes with a helpful instructions and definitions tabs, it's always easier for some users to have a live person guide them through using the software. Secondly, our customer service reps will be available via email and phone to answer any additional questions going forward. How important is it to use such software? Why can't I just use a napkin and a calculator? Well sure you could. We were doing it for years! Calculating a Cap Rate or $/square foot can be done with nothing but a calculator. But even there things get a bit more complicated when it comes to multiple units, or many different operating expenses. And then you have to realize that measures such as Cap Rate or GRM don't even begin to tell the whole story about an investment. To really evaluate the projected return on a rental investment, you must look beyond the static one-year measures of performance. You must look at the potential growth of your cash flow, at the principal reductions in your mortgages, at the tax implications of your yearly income or losses, at the projected value of your property from year to year, and your tax liability when you sell. Knowledgeable investors always look at measures such as Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR), as well as Net Present Value (NPV). Any investment analysis software that you purchase should contain these performance metrics. What is Discounted Cashflow Analysis and Valuation? The basic objective behind DCF Analysis is to project the future cash flows of your investment and then discount them back to the present in order to account for the time value of money. The rate used to discount the cash flows is usually the cost of capital or a required rate of return for a particular investor. The sum of the discounted cash flows is called the Present Value of the investment. If this figure is larger than the initial investment (Net Present Value is positive), then generally the investment is viewed favorably. Why is Discounted Cashflow Analysis important? The value of any given investment is the sum of the cash flows it will generate in the future. In adding up these cash flows, it's extremely important to take into account the "time value of money", because, to put it in simple terms, a dollar received five years from now is less valuable than a dollar received now. In analyzing your investment property, the most relevant measure of performance is the cash flow you will receive from the investment, whether it's the monthly cash left over after paying the mortgage, insurance, and taxes, the tax benefit of yearly losses, or the cash proceeds you take home when you sell the property, and the value of these cash flows to you at the present moment. What features should I look for in property investment analysis software? Any software package or analysis tool that you purchase should provide a comprehensive way to look at your real estate investment. This includes, but not limited to:
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| RENTAL VALUATOR Real Estate Investment Analysis Software |