How to Prepare Financial Statements for a Property Sale > 자유게시판

• 목록
• 답변
• 글쓰기
• 게시판 리스트 옵션
  • 수정
  • 삭제

When a property owner opts to sell, the financial statements included with the sale typically act as the conduit connecting the seller’s aims with the buyer’s confidence

A clean, accurate, and well‑structured set of statements can speed up the sale, reduce negotiation friction, and help the seller claim the best possible price

Below is a practical guide to preparing those financial statements, from the basics of what to include to the nuances of tax and regulatory compliance

1. Understand the Audience

The first step involves determining who will view the statements

Potential buyers span from individual investors and homebuyers to institutional lenders and real‑estate investment trusts (REITs)

While the core information remains the same, the depth and format may differ

For example, a real‑estate developer will want detailed cash‑flow projections, whereas a private buyer may focus on historic rent rolls and maintenance costs

Tailor the presentation to meet the expectations of your target buyer group

2. Assemble Core Information

Collect the following key data sets, ensuring you have records that cover at least the last 12–24 months

Purchase price history and significant capital improvements

end dates, escalation clauses, and security deposit balances

- Operating expense records: utilities, property taxes, insurance, property management fees, repairs, and capital reserve contributions

Mortgage statements and loan amortization schedules, if necessary

- Tax returns (both property and income) for the last few years

Insurance policies and claim history

- Any pending litigation or zoning issues

A complete data set lowers the risk of surprises during due diligence

3. Choose the Right Statement Types

You must create at least three essential statements for a property sale

Income Statement (Profit & Loss) demonstrates operating income, expenses, and net operating income (NOI)

Balance Sheet – Offers a snapshot of assets, liabilities, and equity at a specific moment

Cash Flow Statement – Shows cash inflows and outflows, especially valuable for buyers evaluating financing options

Also, think about adding a Rent Roll Summary, a Capital Expenditure (CapEx) Log, and a Tax Summary

These ancillary documents assist buyers in probing deeper without inundating them with raw data

4. Create the Income Statement

1. Start with gross rental income: total rent collected over the period

2. Subtract vacancy and credit losses: estimate a realistic vacancy rate (often 5–10% for commercial properties; 2–5% for residential) and any bad‑debt write‑offs

3. Deduct operating expenses: utilities, taxes, insurance, maintenance, property management, marketing, and any other recurring costs

4. Calculate Net Operating Income (NOI): the amount left after operating expenses but before debt service and taxes

Deduct any debt service (principal and interest payments)

6. Add or subtract any non‑operating income or expenses (e.g., sale of equipment, one‑time legal fees)

Reach Net Income: the figure that reflects profitability after all costs

Present the income statement in a clear, columnar format with amounts in the primary currency

Add footnotes for any unusual items or one‑time expenses

5. Create the Balance Sheet

Assets:

- Current assets: cash, accounts receivable, security deposits held in escrow

Fixed assets: property's fair market value less accumulated depreciation (include the depreciation schedule if the property is depreciable)

Other assets: intangible assets like leasehold improvements

Liabilities:

Current liabilities: accounts payable, accrued expenses, and short‑term debt

Long‑term liabilities include mortgage balances, deferred tax liabilities

Equity:

- Owner’s equity: purchase price, retained earnings, any capital contributions

Verify that assets equal liabilities plus equity

Include a brief narrative explaining significant items, such as pending appraisals or lease renewals

6. Create the Cash Flow Statement

Separate the cash flows into three categories

Operating activities involve cash from rents, minus operating cash outflows

Investing activities: cash used for capital improvements, purchase or sale of ancillary assets

- Financing activities: mortgage payments, new debt issuance, or equity injections

Display how cash balances shift over the reporting period and spotlight any periods of negative cash flow that could alarm buyers

7. Create the Rent Roll Summary

Detail each tenant, lease start and end dates, rent amount, escalation terms, security deposit, and any other special clauses

Highlights:

Current occupancy rate

- Proximity to lease expirations

The rent growth trajectory over time

A tidy rent roll can assure buyers of income stream stability

8. Create the CapEx Log

Provide a chronological list of all major capital expenditures in recent years: roof replacements, HVAC upgrades, parking lot resurfacing, etc.

For each entry, note the cost, date, and purpose

Buyers frequently use this to evaluate future maintenance needs and compute the replacement reserve

9. Summarize Tax Information

Provide a concise tax summary

Property tax assessments plus payment history

- Income tax returns (if the property is held in a corporate structure)

Tax credits or incentives like low‑income housing credits or energy‑efficiency rebates

Should the property be sold at a gain, include an estimate of capital gains taxes

This helps buyers factor potential tax liabilities into their offer

10. Verify Accuracy and 名古屋市東区 不動産売却 相談 Consistency

Cross‑check all figures across the statements

For example, the net cash inflow from the cash flow statement should match changes in the balance sheet’s cash account

Utilize a spreadsheet to automate these checks and detect discrepancies

11. Include Narrative Explanations

While figures represent part of the story, narrative context can offer clarity

Explain:

Reasons why expenses spiked (e.g., a costly roof replacement)

Lease renegotiations that altered rent schedules

- Market trends influencing rental rates

A clear narrative can anticipate buyer questions and show transparency

12. Ensure Readable Formatting

Stick to a simple, professional layout