Create multi year cash flow
Our underwriting engine is the heart of Backshop. We give you powerful tools to run multi year cash flows.
About multi year cash flows
Depending on Property Type (Major), you will use slightly different methods to create multi year cash flows. You don’t need to worry about the details because we automatically populate the fields based on property type.
|MULTI YEAR CASH FLOW METHOD||PROPERTY TYPES|
Mobile Home Park
For Sale Units
Set up multi-year (direct) cash flow assumptions
This example is for a commercial property type.
1. Click the Underwriting tab and the DCF Assumptions sublink.
Note: Each configuration of Backshop can be different. Underwriting functions might be under the Property tab. Multi Year Assumptions might be called DCF Assumptions.
2. Verify that the correct property and underwriting are selected in the menus.
3. Enter the number of years, which is required. Add more if you like. You can always come back.
4. Click the Update button to save your assumptions.
After you save your stabilized cash flow assumption, more settings become populated and available.
1. Income and Capital Assumptions: Grow/adjust lease level assumptions from the stabilized cash flow.
2. Tenant Absorption: Vacant space will be leased based on the Term.
3. Other Income and Expense Assumptions: Can be percent of EGI, straight growth or custom growth.
Review and/or edit the settings, then click the Update button. You can always come back.
View your multi year cash flow
1. To open the multi year cash flow in the same window, click the DCF (NPV) sublink in the main navigation.
2. To open the multi year cash flow in a new window, click the Open Cash Flow in New Window link. Ideal when using multiple computer monitors.
Here is the “commercial” multi year cash flow.
1. Export the multi year cash flow to Excel.
2. Change view units: all (dollars, percent and per unit) or just dollars