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ProCash, an Economic Model for Income Properties


A project can be analyzed as a "pro forma setup" or as "cash flow over time." The construction period and the operating periods may be of any length (monthly, quarterly, annual). Construction and operating periods may overlap. The projection period can be virtually unlimited (e.g. 50 years). All timing factors can be input as dates, so that permanent or equity funding can be available during construction or long after opening date.

ProCash© will assume the user desires an annual projection of operating accounts unless otherwise instructed. If a quarterly projection is desired, then MV[19] should be set to 4. If a monthly projection is desired, then MV[19] should be set to 12.

A fifteen year operating projection will be made unless the user otherwise instructs ProCash© through MV[13]. Setting MV[13] to a value of 5 would instruct ProCash© to make a five year projection provided that MV[19] has the default value of 1 for annual.

If the project includes a development or construction process, then these periods will be additional to the operating periods projected. The default value for the definition of development periods up front is annual. (This is so that the acquisition of existing projects will be represented as a time period prior to operating results in order to give a reasonable calculation of internal rate of return.) If a construction process is to be simulated, the user will probably wish to set the value of MV[18] to 4 for a quarterly simulation of the construction process, or to 12 for a monthly simulation of the construction process. Of course, QTR and MV[5] must be defined accordingly.

Unless ProCash© is otherwise instructed, it will print column headings as sequential numbers starting with zero or one. If the user wishes column headings to be years, MV[31] can be set to identify the first year. If MV[19] indicates other than an annual projection, the system will adapt headings appropriately.

AVI[89]When equity contribution available 380  3
AVI[142]No.Periods to project (MV[19] period definition) 380  3
AVI[26]Mortgage close (mos.after opening, % rented, or date) 380  2
AVI[24]Start of construction loan availability 380  1
AVI[10]Date of costs to date (CM[;6]) 380  
AVI[23]Opening date for property 380  
AVI[25]Date permanent mortgage deal made 380  
AVI[95]When land sale-leaseback transacted 380  
MV[19]Periods/Year for Operations 380  
AVI[177]Project Opening Staggered(.5=halfway thru AVI[28]) 380  
MV[57]Cash Advances End of Period (0) Midway (.5) Beginning (1) ° 380  

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