It’s budgeting season! Are you currently running budget scenarios across your portfolio? Have you started pulling together your budgeting reports? LoanBoss has the ability to replicate and automate any internal report including reports that make budgeting/reporting season easier for you. We've compiled a list of the top 5 commercial real estate budgeting reports that LoanBoss offers.
How do you keep track of your cashflows?
There are many different ways our reporting function can help you keep track of your outflow. Here are 2:
Aggregate Cashflows provides a high-level overview of your entire portfolio. It shows the sum of your portfolio's projected debt service out until the maturity of your longest loan. Principal Payment Cashflows provides a granular view. You can see principal payment deal by deal so you know exactly how much debt service you have to pay for each year for each loan.
Track your outflows either from a portfolio view or deal by deal.
Closing Cost and Other Fees
How many deals do you think you're going to close in the next year?
We know you can never be sure about the exact amount you should be allocating toward closing costs and other fees but our report helps you get a ballpark number based off of historical data such as previous closing cost ratio and average broker fee.
Focus on closing deals. The report's analysis will tell you how much you'll likely owe in fees.
Don't forget to keep these fees in mind while budgeting.
DSCR Projections with NOI Shocks
How does a 5%, 10%, or even 15% shock to your NOI affect your DSCR?
Based on property projections and forward curves, LoanBoss projects your DSCR for the life of each deal so you can proactively manage your expectations. You can also see your DSCR (debt service coverage ratio) projections with NOI (net operating income) shocks. Evaluate how a 5%, 10%, or even 15% shock to your NOI will affect your covenants and prepare for the future.
It's easier to be prepared when you know what you're preparing for.
Do you have to manage a reserve account?
While mainly applicable for Agency borrowers, the Reserve Accounts report allows you to see your reserve details for each deal that has them. From interest amount to covenants, it'll even be able to tell you if you can get some cash back for meeting certain requirements.
How much money do you have as backup if you fall short on principal and interest payments? How much do you have to deposit into a reserve account and when?
This report will give you all of the details you need and then some.
Are you still pulling forward curves to assess your interest rate risk?
Instead of asking for a forward curve to run budget projections for each loan, the Interest Expense report provides deal by deal projections for the life of each loan all at once.
Particularly valuable for floating rate debt, it's easy to see just how much you should be setting aside for interest expenses. Is your interest rate going to be higher than ideal in the future? How can you plan around it so you don't go over budget?
Stop examining your interest expense deal by deal.
And as a bonus, we also have the Shocked Interest Budgeting report.
How does a shock to your interest expense affect your DSCR?
Like the Interest Expense report, this is particularly valuable for floating rate debt. Find out how much more you'll be paying in interest with a 50bps, 75bps, or 100bps increase to rates.
Calculate how that increase in interest expense would affect your DSCR covenants and plan for it ahead of time. How much more in NOI do you need to keep your DSCR the same?