REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade – to analyze your property quickly and accurately. Fast, comprehensive real estate investment analysis to make a sound investment decision in 15-minutes.
REIF creates financial metric scores based on the value outputs relative to target metrics. To adjust your scoring (and conditional formatting), go to the "Report Settings" tab under "Financial Metric: Score and Conditional Formatting Settings" to set "Neutral" and "1 Point" values for Financial Metrics. Input target metric hurdles that will create a score for that metric based on the output values to identify if those metrics are great, good, average, poor, or awful.
Neutral = value that would generate an average outcome (e.g. target bogey)
1 Point = amount from "Neutral" in order to generate a positive or negative outcome
Return Example: Neutral = 20% | 1 Point = 5%
Great > 30% = Score 5; Green Highlighted
Good > 25% = Score 4; Green Bold
Average = 15% to 20% = Score 3; No Change to Formatting (Black)
Poor < 15% = Score 2; Red Bold
Awful < 10% = Score 1; Red Highlighted
As you adjust these Financial Metric settings and/or change your data inputs, so will the colors of the cell values.
Project Grade and Score
REIF creates a 1-5 score for each Financial Metric based on the targets you set ("Neutral" and "1 Point")
You can choose up to 15 Key Financial Metrics and up to 5 Key Years
You then weight each of those Financial Metrics and Key Years you selected to generate the Project Score and subsequent Project Grade
Project Score and Project Grade = single, all-encompassing data point based on your investor preferences to make your investment decisions efficiently and holistically
The Project Score and Project Grade can be viewed throughout the model at the top of each worksheet so you can see how changes in Inputs change the Project Score and Project Grade
There is also a separate Project Score and Project Grade report where you can see the details behind the calculation
Additionally, at the top of most worksheets you can see your Project Grade so as you change your assumptions and inputs you can see how those changes will impact your Project Score and Project Grade