pdfactionscovid renter distress_ucla lewis usc lusk_aug2020 B u s i n e s s F i n a n c e
- Each group will write a recommendation
letter regarding the property that they are
considering using graphs, charts, tables,
and text. - This should be considered a professional
document, not academic. - All group members are responsible for
ALL the content in the document. - Special attention should be made to
ensure that the letter flows and is not
several individual topics combined into a
longer, but disjointed document.
- The letter will contain:
- the DCF calculations
- a recommendation of how much to
purchase the property for - a sensitivity analysis for the significant
variables - an explanation of the selection of
variables - an explanation of the assumptions used
- the analysis performed
- a description of the pros and cons that
support the recommendation
- The letter must be written using
professional language and formatting. - The letter must be in PDF format and must
include the necessary tables and
calculations. - The text portion of the letter must not be
more than ten pages. However, charts and
tables should be incorporated and may
make the overall length of the letter longer. - Additionally, one Excel file showing all
the calculations and tables must be
submitted. - Proper citation must be used.
This is a group project that requires each
group to analyze an apartment complex that
is available for sale. Each group will perform
a 10-year discounted cash flow analysis
(DCF) that will need to consider many
differing factors. Depending on the property,
there may be consideration of an assumable
loan, section 8 units, rent control, or any
number of other characteristics. Groups will
be provided with a market overview that they
may use in the analysis of the property.
Students may not contact anyone involved in
the property listing and may not visit the
property. Students must rely on publicly
available data and the data provided by the
professor. Market research beyond what is
provided by the professor should be minimal.
Client Details
- The client has an income tax rate of 23%.
- The property tax rate is 1.25%.
- The capital gains tax rate is 15%.
- Financing terms should be market.
- The land makes up 40% of the value.
Recources
HudUser Data resources (Links to an external site.)
20_08 National Multifamily Outlook – Beyond the Health Crisis Special Report pdf.pdf
20_09 2Q Rent Collections – Beyond the Health Crisis Special Report pdf.pdf
20_09 California Proposition 15 – Beyond the Health Crisis Special Report pdf.pdf
2019 USC Casden Multifamily Forecast Report.pdf
COVID Renter Distress_UCLA Lewis USC Lusk_Aug2020.pdf
expectations-and-market-realities-in-real-estate-2020.pdf
multifamily-market-research-los-angeles-2020-2q.pdf
Q2 2020 US Multifamily Figures.pdf
Q4 2019 LA Multifamily – Market Figures _8ZK0.pdf
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