Financial Analysis

Using your search results in the list, map, and summary views, you can select a specific property on which to review more details. The More Details window can include the Financial Analysis panel.

The Financial Analysis panel allows you to run different profit and loss scenarios, which may help you to decide, financially, whether a property is a good investment or not.

This panel requires your input before showing financial analysis for a property. By clicking , the Financial Analysis window is displayed, where you can enter your investment analysis information. Your selections in the Financial Analysis window will determine how the Financial Analysis panel is displayed. You can set up default data for your account to automatically use the values you want for financial analysis.

Auction Financial Analysis Panel

The fields shown in the Financial Analysis panel depend on the Analysis Type selected, and can include:

• Analysis Type: Auction, Subject To, Traditional, and Listing analysis selected.
• Bid/Offer Amount: the dollar amount you enter for your bid at auction.
• Sale Price: the amount paid for the property.
• Est. Rent: the estimated amount for monthly rent.
• Investment: the total amount invested in the property, not including the portion that was financed.
• Proceeds: sale price minus closing costs, commissions, loans, and other expenses.
• Expenses: the monthly expenses associated with holding the property.
• Resale Profit: the profit on reselling the property.
• Resale ROI: the Return On Investment shows the ROI annualized percentage for the property for resale.
• Rental Income: the monthly income on the rental property.
• Rental ROI: the Return On Investment shows the ROI annualized percentage for the property as rental income.
• Net to Seller (Listing Analysis Type): the sale amount minus the sale costs, which is the same as the short amount.

Financial Analysis Window

After clicking , the Financial Analysis window is displayed. The content provided in the Financial Analysis window is based on the Analysis Type you select.

• The Summary, Investment, Proceeds, Expenses, and Net Sheet tabs are available to enter the applicable field information.
• By clicking , your default data from My Account is set in the associated fields.
• Click to save your analysis figures.

Financial Analysis Window for an Auction Analysis Type

Analysis Types

Using the Financial Analysis window, you can choose from among the four Analysis Types including Auction, Subject To, Traditional, and Listing, which specify how the analysis, tabs, and fields will be generated.

• Auction: when the Auction analysis type is selected (by default), the financial analysis includes paying off any senior debt; including past due property taxes, and loans senior to the one to be bid on.
• Subject To: by selecting the Subject To analysis type, the financial analysis assumes that all loans will remain on the property after purchase.
• Traditional: by selecting the Traditional analysis type, the financial analysis assumes all existing loans and debts are paid by the seller.
• Listing: by selecting the Listing analysis type, a net sheet format provides a simple way to figure out the seller's equity in the property.

After selecting an analysis type, the Financial Analysis window is populated with related tabbed information. The Auction, Subject To, and Traditional analysis types provide the Summary, Investment, Proceeds, and Expenses tabs. The Listing analysis type provides the Net Sheet tab.

Summary Tab

The fields in the Summary tab change depending on the Analysis Type you select. The Summary tab provides analysis for two scenarios: Resale Flip ROI and Rental ROI.

Resale Flip ROI
The percentage for the resale return on investment is calculated by dividing the Profit by the Investment. The ROI is annualized based on the Days Held. Using the Days Held field, the value is converted to an annual ROI. By providing an annualized ROI, you can compare with other investment opportunities, which are often described as annualized.

• Investment: the total dollar amount invested in the property, not including the portion that was financed. The Investment tab is used to calculate this field value.
• Sale Proceeds: Sale price minus closing costs, commissions, loans, and other expenses. Click Sale Proceeds to link to the Proceeds tab, which is used to calculate this field value.
• Holding Costs: The costs associated with holding the property. Click Holding Costs to link to the Expenses tab, which is used to calculate this field value.
• Profit: the Profit value equals the sale proceeds minus the investment and costs. Calculations vary depending on the Analysis Type you select.
• Return on Investment (Annualized ROI): depending on the Analysis Type you select, the ROI shows the ROI annualized percentage for the property for resale.

Rental ROI
The percentage for the rental return on investment is calculated by dividing the Profit by the Investment. The ROI is annualized based on the Days Held. Using the Days Held field, the value is converted to an annual ROI. By providing an annualized ROI, you can compare with other investment opportunities, which are often described as annualized also.

• Investment: the total dollar amount invested in the property, not including the portion that was financed. The Investment tab is used to calculate this field value. This value depends on the Analysis Type you select.
• Rent Monthly: estimated monthly rental value for the property. May be based on HUD Fair Market Rents or other sources.
• Expenses: the monthly expenses associated with holding the property. The Expenses tab is used to calculate this field.
• Operating Income: the rent minus expenses.
• Return on Investment (Annualized ROI): depending on the Analysis Type you select, the ROI shows the ROI annualized percentage for the property as rental income.

Investment Tab

The Investment tab enables you to enter analysis information for the associated Investment fields in the window. The fields in the Investment tab change depending on the Analysis Type you select; Auction, Subject To, or Traditional.

Auction Analysis Type Investment Selections

• Investment: the total amount invested in the property, not including the portion that was financed.
• Bid Amount: the dollar amount you enter for your bid at auction.
• Loan Bid On: the loan bidding on at trustee sale, use this to take into account, the fact that senior loans must still be paid when bidding on a junior loan. Be sure to fill in all loan information for this to adjust the analysis accordingly.
• Repairs: total repair costs necessary to prepare the property for sale or rent.
• Past Due Property Taxes: amount due for all outstanding property tax bills. For counties that have the information available online, the Tax Assessment panel provides a link to the website of the county tax collector. Clicking this link opens a new tab or window and accesses a site outside of ForeclosureRadar where you can look up public tax records.
• Eviction: the cost to evict the current homeowner, if necessary, can also be used for cash-for-key allotment.
• Past Due Existing Loans: amount due for all outstanding loans on the property.
• New Financing: the details of a new loan taken to finance the purchase of a property.
• Amount: the amount borrowed on a new loan taken to finance the purchase of a property.
• Points & Fees: the points and fees taken on a new loan taken to finance the purchase of a property.
• Payment: the monthly payment taken on a new loan to finance the purchase of a property.

Subject To Analysis Type Investment Selections

• Investment: the total amount invested in the property, not including the portion that was financed.
• Cash to Seller: the amount given to the seller, over and above the debt outstanding on the property, which will remain outstanding after the sale.
• Repairs: the total repair costs necessary to prepare the property for sale or rent.
• Past Due Property Taxes: amount due for all outstanding property tax bills. For counties that have the information available online, the Tax Assessment panel provides a link to the website of the county tax collector. Clicking this link opens a new tab or window and accesses a site outside of ForeclosureRadar where you can look up public tax records.
• Past Due Existing Loans: amount due for all outstanding loans on the property.
• New Financing: the details of a new loan taken to finance the purchase of a property.
• Amount: the amount borrowed on a new loan taken to finance the purchase of a property.
• Points & Fees: the points and fees taken on a new loan taken to finance the purchase of a property.
• Payment: the monthly payment taken on a new loan to finance the purchase of a property.

Traditional Analysis Type Investment Selections

• Investment: the total amount invested in the property, not including the portion that was financed.
• Offer Amount: the dollar amount you enter for your bid at auction.
• Repairs: total repair costs necessary to prepare the property for sale or rent.
• New Financing: the details of a new loan taken to finance the purchase of a property.
• Amount: the amount borrowed on a new loan taken to finance the purchase of a property.
• Points & Fees: the points and fees taken on a new loan taken to finance the purchase of a property.
• Payment: the monthly payment taken on a new loan to finance the purchase of a property.

Proceeds Tab

The Proceeds tab enables you to enter analysis information for the associated fields in the window. The fields in the Proceeds tab change depending on the Analysis Type you select; Auction, Subject To, or Traditional.

Auction Analysis Type Proceeds Selections

• Sale Proceeds: sale price minus closing costs, commissions, loans, and other expenses.
• Sale Price: the amount for which the property is resold.
• Sale Cost: the costs associated with the sale of the property.
• Closing Costs Percentage with total amount: percent allocated for title, escrow, notary, and other costs associated with closing escrow; the amount is calculated based on the percentage entered.
• Commissions Percentage with total amount: percentage allocated in commissions for the property; the amount is calculated based on the percentage entered.
• New Finanacing Amount: the amount borrowed on a new loan taken to finance the purchase of a property.
• Senior Loan Balance: the total amount owed on loans senior to the loan being bid on at auction, as these will remain outstanding after the purchase at auction.
• Position: First, Second, Third, Other, and IRS rows pertaining to the Balance, Past Due, and Payment fields. These are the estimated positions of the loan shown versus other loans (for example, first, second, or third mortgages).
• Balance: the estimated principal balance. Initially this field is filled with the original loan amount. The actual balance may be higher if the loan had negative amoritization, or lower if the borrower had been paying down the principal.
• Past Due: the amount to bring the loan current. Initially this field is filled with the default amount from the Notice of Default.
• Payment: monthly payment due on the loan.
• Reset: click to return to the original amount shown in the Balance, Past Due, and Payment fields for any of the loans.
  

Subject To Analysis Type Proceeds Selections

• Sale Proceeds: sale price minus closing costs, commissions, loans, and other expenses.
• Sale Price: the amount for which the property is resold.
• Sale Cost: the costs associated with the sale of the property.
• Closing Costs Percentage with total amount: percent allocated for title, escrow, notary, and other costs associated with closing escrow; the amount is calculated based on the percentage entered.
• Commissions Percentage with total amount: percentage allocated in commissions for the property; the amount is calculated based on the percentage entered.
• New Finanacing Amount: the amount borrowed on a new loan taken to finance the purchase of a property.
• Existing Loan Balance: the amount owed on the existing loan.
• Position: First, Second, Third, Other, and IRS rows pertaining to the Balance, Past Due, and Payment fields. These are the estimated positions of the loan shown versus other loans.
• Balance: the estimated principal balance. Initially this field is filled with the original loan amount. The actual balance may be higher if the loan had negative amoritization, or lower if the borrower had been paying down the principal.
• Past Due: the amount to bring the loan current. Initially this field is filled with the default amount from the Notice of Default.
• Payment: monthly payment due on the loan.
• Reset: click to return to the original amount shown in the Balance, Past Due, and Payment fields for any of the loans.

Traditional Analysis Type Proceeds Selections

• Sale Proceeds: sale price minus closing costs, commissions, loans, and other expenses.
• Sale Price: the amount for which the property is resold.
• Sale Cost: the costs associated with the sale of the property.
• Closing Costs Percentage with total amount: percent allocated for title, escrow, notary, and other costs associated with closing escrow; the amount is calculated based on the percentage entered.
• Commissions Percentage with total amount: percentage allocated in commissions for the property; the amount is calculated based on the percentage entered.
• New Finanacing Amount: the amount borrowed on a new loan taken to finance the purchase of a property.

Expenses Tab

The Expenses tab allows you to enter analysis information for the associated Expenses fields. The fields in the Expenses tab change depending on the Analysis Type you select; the Auction and Subject To Analysis Types contain the fields below, and the Traditional Analysis Type does not include the Existing Loans Payments field:

• Expenses: the monthly total of all costs.
• Insurance: monthly insurance costs.
• Utilities: monthly utilities costs.
• Property Management: monthly fees for property management services.
• Property Taxes: monthly property taxes. For counties that have the information available online, the Tax Assessment panel provides a link to the website of the county tax collector. Clicking this link opens a new tab or window and accesses a site outside of ForeclosureRadar where you can look up public tax records.
• HOA Dues: homeowner association fees, if applicable.
• Existing Loans Payments: the monthly payments for the existing loans on the property. (This field is available with Auction and Subject To analysis types).
• New Financing Payment: the monthly payment on a new loan taken to finance the purchase of a property.

Net Sheet

After selecting the Listing Analysis Type, the Net Sheet tab is displayed with fields enabling you to figure out the seller's equity in the property.

• Short Amount: the amount obtained by subtracting the loan payoff and the sale cost from the sale price.
• Sale Price: enter the amount at which the property can be sold.
• Sale Cost: the cost obtained by adding the closing and commission costs.
• Closing Costs Percentage with total amount: percent allocated for title, escrow, notary, and other costs associated with closing escrow; the amount is calculated based on the percentage entered.
• Commissions Percentage with total amount: percentage allocated in commissions for the property; the amount is calculated based on the percentage entered.
• Loan Payoff: amount for loan payoff, which is the total of all balances plus any past due amounts.
• Position: First, Second, Third, Other, and IRS rows pertaining to the Balance, Past Due, and Payment fields. These are the estimated positions of the loan shown versus other loans.
• Balance: the estimated principal balance. Initially this field is filled with the original loan amount. The actual balance may be higher if the loan had negative amoritization, or lower if the borrower had been paying down the principal.
• Past Due: the amount to bring the loan current. Initially this field is filled with the default amount from the Notice of Default.
• Payment: monthly payment due on the loan.
• Reset: click to return to the original amount shown in the Balance, Past Due, and Payment fields for any of the loans.