We formulate a BFFM for investors to estimate the Maximum Investment Value of a real estate asset. We encourage you to contact Edgard Asensio, MBA (edgard@asensiorealestate.com) to generate a model for your real estate acquisition.
GPI
- Vacancy
GEI
- Operating Expenses
NOI
NOI/DSCR = Annual Debt Service
Annual Debt Service Capacity/K = Maximum Mortgage Loan Possible
NOI
-Annual Debt Service
Cash Flow to equity (Before taxes)
Equity Cash Flow/Required ROE = Maximum Equity Investment
Maximum Equity Investment + Maximum Mortgage Loan Possible = Maximum Investment Value