The Value & Financing section of IntellCRE’s Analysis form is where you can price a deal, test financing scenarios, and forecast exit strategies. By combining sales comps, financing assumptions, and sensitivity analysis, you can determine whether a deal meets your investment criteria and set an optimal property value.
Follow this tutorial to price a deal:
1. Getting Started
Navigate to the Analysis section.
Go to the Value & Financing section.
This is where you’ll define deal pricing, financing, and acquisition and sale assumptions.
2. Selecting Sales Comparables
There are three ways to add comps:
Quick Suggest → AI auto-selects recent comparable sales in the market.
Import Comps → Upload your own comp library or create comps individually.
Search Sales Comps (Map View) → Use filters, map view, or polygon drawing to narrow down your search and cherry-pick the best comps.
3. Acquisition & Sale Assumptions
This section lets you define purchase and exit assumptions:
Acquisition: acquisition date, working capital, acquisition fee, and closing costs.
Sale: hold term, closing costs, and most importantly the Exit Cap Rate.
Exit Cap Rate methods:
Rule of Thumb → Stabilized cap rate + 0.1 per year of hold.
Manual Entry → Define your own cap rate.
IntellCRE AI → Uses historical market data to model appreciation and exit cap rate.
You can also choose whether to calculate exit value using pre-sale or post-sale 12 month NOI.
4. Deal Valuation Methods
In addition to comps, you can enable other algorithms to determine deal value:
Comparable-Based Estimate → Uses selected comps to calculate property value range.
Minimal Cap Rate Estimate → Uses market cap rate and current NOI to calculate price range.
Enable both methods for a blended “optimal value” range. Buyers may target the lower end, while sellers aim for the higher end. Always review the return metrics in the right side bar to ensure equilibrium (i.e. returns on the deal should be above market and deal type specific standards.)
5. Financing Scenarios
In this section, you can model different financing structures for your deal:
Existing Loan → Assume debt by entering original loan, remaining term, and loan details.
Acquisition Financing → Define terms such as loan amount, interest rate, amortization, fees, LTV, and DCR.
Refinancing & Additional Financing → Add scenarios for refinancing, bridge loans, or other capital injections throughout the hold period.
All-Cash Purchase → Disable financing if no debt will be used.
Assuming Loan → Enter purchase price minus the remaining existing loan balance into Acquisition Equity input.
Refinancing → Make sure the timeline for refi and acquisition loan term are aligned so that the refi is used to cover acquisition financing loan payoff fully. Carefully set the refinancing cap rate (i.e. property value at refi).
6. Sensitivity Analysis
Use Sensitivity Analysis to test how changes to key assumptions affect deal performance and returns:
Enable grids for Exit Cap Rate and/or Purchase Price.
Adjust increments in key assumptions and number of steps to model multiple scenarios.
Results display in the bottom panel and can be included in reports for all enabled sensitivity analyses.
See the full tutorial on Sensitivity Analysis for a detailed walkthrough.
7. Equity Waterfall Modeling
For partnership or syndication deals, you can model equity structures:
Define GP/LP equity splits.
Set acquisition, management, and disposition fees for the GP.
Set preferred return Hurdles (e.g., 8% IRR).
Add GP promotes at higher return hurdles.
Automatically calculate GP/LP IRR, equity multiples, and cash flow splits.
Make sure to have non-zero GP equity split and at least two hurdles with non-zero GP promote for the equity waterfall to work correctly. For different waterfall structures with claw-backs, catch-ups, and other provisions or non-standard terms reach out to our team for equity waterfall customization options.
8. Reviewing and Finalizing
Hover over return metrics in the right side bar to see year-by-year breakdowns.
Use the bottom panel to review detailed cash flow, NOI, financing, and return projections.
Ensure the deal passes your preset decision criteria (green = passes, red = fails).
Add narrative notes or assumptions in the Deal Notes Section for context.
Click Create Deal to finalize your analysis.
If you have any questions while working through this section, click the Support button in the platform or reach out to our team—we’re here to help!