RE530 Investment Memo Format (9 9 23) In analyzing real estate investments at the detailed property level, it is critical to consider all the factors that influence value Certainly, rent levels are key determinants of value, but many other factors are also very important and must be considered to get a complete picture of the investment In this course, students are asked to evaluate a number of investment opportunities and make recommendations in the form of an Investment Memo to their clients These Investment Memos are to be 4 6 pages in length, plus exhibits, and use EXACTLY the format below The Memo must be in business memo format, properly formatted with 11 pt type and 1 line spacing with name, project name and page numbers on every page Also, do not use person pronouns (I, we, us, my and our) at all, as they are not considered appropriate in professional writing EXECUTIVE SUMMARY this should summarize your entire investment analysis and recommendations and be totally self contained, so that the reader doesnt have to read any more to know all of your key findings PROPERTY ANALYSIS Property Summary and Location Demographics Current and Future Market Current and Future Site Building Analysis including deferred maintenance where applicable (listed as an item in the Investment Memos, but not include for this course) FINANCIAL ANALYSIS Assumptions Broker Proforma Adjustments Proposed Financing Best Case Analysis Worst Case Analysis Probable Case Analysis Partitioned IRR RECOMMENDATIONS you must make a recommendation for each investment opportunity tell why you are making the recommendation and do not hedge EXHIBITS exhibits should contain all the supporting documents that you have made reference to in the written analysis above For CoStar, you should only present the key market data outputs used For STDB, you should only present the key demographic data outputs used Be sure that you TAB the different exhibits to allow for easy review by the reader As a hint, if you to do a 4 page Investment Memo, the Executive Summary might be 1 page, the Property Analysis might be 1 pages, the Financial Analysis might be 1 pages and the Recommendations might be 1 page, all plus the Exhibits

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RE530 - Investment Memo Format (9/9/23) In analyzing real estate investments at the detailed property level, it is critical to consider all the factors that

RE530 - Investment Memo Format

(9/9/23)

In analyzing real estate investments at the detailed property level, it is critical to consider all the factors that influence value. Certainly, rent levels are key determinants of value, but many other factors are also very important and must be considered to get a complete picture of the investment. In this course, students are asked to evaluate a number of investment opportunities and make recommendations in the form of an Investment Memo to their clients.

These Investment Memos are to be 4-6 pages in length, plus exhibits, and use EXACTLY the format below. The Memo must be in business memo format, properly formatted with 11 pt type and 1 line spacing with name, project name and page numbers on every page. Also, do not use person pronouns (I, we, us, my and our) at all, as they are not considered appropriate in professional writing.

EXECUTIVE SUMMARY this should summarize your entire investment analysis and recommendations and be totally self-contained, so that the reader doesnt have to read any more to know all of your key findings.
PROPERTY ANALYSIS
1. Property Summary and Location
2. Demographics Current and Future
3. Market - Current and Future
4. Site/Building Analysis including deferred maintenance where applicable (listed as an item in the Investment Memos, but not include for this course)
FINANCIAL ANALYSIS
1. Assumptions/Broker Proforma Adjustments
2. Proposed Financing
3. Best Case Analysis
4. Worst Case Analysis
5. Probable Case Analysis
6. Partitioned IRR
RECOMMENDATIONS you must make a recommendation for each investment opportunity tell why you are making the recommendation and do not hedge.
EXHIBITS exhibits should contain all the supporting documents that you have made reference to in the written analysis above. For CoStar, you should only present the key market data outputs used. For STDB, you should only present the key demographic data outputs used. Be sure that you TAB the different exhibits to allow for easy review by the reader. As a hint, if you to do a 4 page Investment Memo, the Executive Summary might be 1 page, the Property Analysis might be 1 pages, the Financial Analysis might be 1 pages and the Recommendations might be 1 page, all plus the Exhibits.