Real Estate

Solution

The JMI team analyzed the property from various parameters which included:

• JMI team created test advertisement of the property and analyzed the response of potential tenant on Zillow to understand the demand of the property.
• Performed area and price analysis to get better understanding of nearby spots like shopping mall, tourist spots, big retailers and other points of interest.
• Understood the demographics and figured out other key parameters like population growth, unemployment rate, household income, gross rent, top employers, crime rate and historical home price appreciation etc.
• Performed Surrounding manufactured home listings of both single and multi-family accommodation, flood zone assessment, detailed unit breakdown, historical billing and occupancy.
• Performed Property tax review and tax assessments, permits and licenses review, insurance review and vendor’s list.
• Retrieved flood zone information, crime report, hurricane data, sex offenders, opportunity zone data for the target property.
• Analyzed tenant turnover, reconciled tenant rent billed and collected amount, occupancy rate, electricity and water utilization across each lot.

Solution

• The JMI Team re-worked the entire data inflow process for data processing by building a data lake for quick and easy access of requisite data.
• Performed extensive data pre-processing steps to convert unstructured and semi-structured data coming in from various sources into a structured human readable format for data processing.
• Derived intelligent KPIs based on current and historical financial data and build interactive visual dashboards.
• Individual property-wise profile rich dashboards were built based on clustering techniques. These dashboards also helped to understand tenant behavioural patterns at the granular level. Predictive analytics based on ML were employed to classify tenants based on propensity to make late payments and default on loans.

Solution

• The JMI Team through extensive research and market analysis found that properties like that were in high demand and low supply which made it a lucrative opportunity.
• The JMI team collated aerial drone shots and ground photos to present them in the deck to help better understand the surrounding locality.
• Carried out extensive market research of the surrounding area and found out the median income, largest employers, demographics of the locality.
• Analyzed the surrounding area and found out the key centers such as big retailers, shopping malls and other points of interest in and around the area.
• Evaluated comparable apartments in the area and analyzed the rents and prices of such properties to gauge the fair value of the portfolio property.
• Highlighted the Business plan of the property and listed the key business risks.

Solution

• The JMI team conducted detailed fundamental research to understand the key drivers for rental revenue and the operating cost associated with the project.
• We produced an appropriate Cap rate and projected the cap rate going forward using our in-house research databases along with calculated well thought assumptions.
• Developed a 5-year monthly financial statement by incorporating the historical numbers and the forecasted the financials.
• Performed return analysis with different scenarios and assumptions such as LTV ratio, Interest rates, Maturity and Amortization time frame, Capex expense etc.
• Evaluated and ascertained the various sources and uses of cash, total capex and operating budgets.
• Prepared a detailed equity waterfall structure and calculated the levered and unlevered IRR of the project.

Solution

• JMI team first gathered all the client’s accounting records for their diverse range of assets and put each into an analogous format, making them all comparable.
• Financial information was then integrated into JMI's proprietary digital platform for our client to get insights on their asset performance across geographies.
• The digital dashboard displayed the summary of the client’s assets performance, assets, and liabilities. It also provided the ability to track these assets in relation to income and expense findings, thus providing a clear representation of their profitability at any given time.
• JMI team identified that their investments in the real estate assets in the European region were underperforming benchmarked to its index from the last eight months.
• The platform has succeeded in consolidating information into an easy-to-use, digestible format and has improved the client’s ability to communicate with family members about their overall wealth.
• By taking all qualitative and quantitative data and adding in advanced technology, the client had access to a comprehensive, insightful, and intuitive turnkey solution that returned control to them.