Portfolio Analysis

Portfolio analysis is perhaps the most exciting and useful real estate planning service offered to clients. You provide a series of portfolio reports for your clients. You are putting your clients’ property holdings into a broad detailed, financial perspective. A trusted advisor shows clients the financial side and the long term financial consequences of their decision-making in their real estate portfolios.  

Most portfolio analysis activities are essentially the same: you gather some information from your clients (see create a client profile below); then input the information into portfolio worksheets; and generate portfolio reports.That’s it. For each report, we provide instructions on how to interpret the report. 

Here are the recommended steps in offering portfolio analysis services to your clients: 

Step 1

Go to “Create a Client Profile” and make sure that the information that you need to generate portfolio reports is there. 

Step 2

Select the Report you want to generate for your client. Here are the available reports:

Asset Portfolio Report- this report paints a picture of your client’s  financial asset portfolio, including real estate holdings, stocks, bonds, retirement plans and so on. The report also shows the extent of diversification of a client’s asset portfolio. The report’s objective is to give your client a “feel” for how important a role real estate plays in his overall financial situation. It also convinces clients that property holdings are not just a place to live– they are financial assets. 

Primary Residence Report- This report paints a financial picture of your client’s primary residence, including beginning and current equity; loan balances, and other financial information related to your client’s home. The report shows how changes in mortgage loan terms (mortgage rate, fixed-rate versus variable-rate; the term  (15-year versus 30 year and so on) and property value affect the amortization of the loan and the accumulation of home equity.

Rental Property Report – This report shows clients the financial implications of purchasing a foreclosure property at a discounted price.

This report shows what a property investment would look like from a financial perspective. We purchase a simple rental property and generate both positive and negative cash flows, depending on down payment and rental rate assumptions. This report also shows the financials of a rental property investment, including rents, monthly and annual cash flows and capital gains.

Vacation Property Report- This report shows the financial performance of a vacation property including all expenses and rental income. 

Foreclosure Report- This report shows clients the financial implications of purchasing a foreclosure property at a discounted price.