Land Development Property Investment Evaluation. Windows Version 7.4

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1 Land-PIE Land Development Property Investment Evaluation Windows Version 7.4 Distributed by Real Pro-Jections, Inc. 300 Carlsbad Village Drive Suite 108A, PMB 330 Carlsbad, CA (760) Developed by Glenn L. Gessay Advanced Micro Applications, Inc Hawk View Drive Encinitas, CA (760) Copyright Advanced Micro Applications, Inc. All Rights Reserved

2 Acknowledgment Land-PIE makes use of the Prophit Application Interface, Modeling System and Processing Engine owned by Advanced Micro Applications, Inc.

3 TABLE OF CONTENTS Page INTRODUCTION Sampling of Land-PIE Features System Flow Land-PIE Reports Overview Cash Flow Forecast Loan Flow & Equity Participation Profit & Loss and Balance Sheet Forecast Sensitivity Matrix Budget Analysis Report Distribution Modification Multiple Investment Partners PLAN vs UPDATE Variance Report Cost Detail Planning Report Report Consolidations SAMPLE REPORT OUTPUT Primary Report Budget Analysis Report Executive Summary Report Cost Detail Planing Report Cost Detail Summary Report HOW TO USE Land-PIE Selecting a Data Directory (Folder) for Land-PIE Files Command Buttons Main Menu Primary Reports Command Button Detailed Planning Command Button Consolidations Command Button Auxiliary Reports Command Button View / Print Command Button Data Forms Command Button Goal Seeking Command Button Utilities Command Button Inputting and/or Calculating Assumptions Screen No Report References Automated Import Actuals Capability Data Entry Screens Input Screens Menu Bar Commands File Command

4 Page Report Command Edit Command CopyPrior, SpreadPrior, CurrTotal Commands Trends Command Calculator Command SelectScreen Command SelectSection Command Detail Accounts Command Help (F1) Command Display Grid Menu Bar Commands Print, Print Preview Commands GoTo Command Options Command Report Family Command Custom Specs Commands Report Periods Command Font Size Command Format Cells Command Sensitivity Matrix Command Goal Seek Command Graphs Command Close Command DETAILED EXPLANATION of INPUT ITEMS (Primary Report) Screens #1 - #15 -- Product Sales Modules Screens #16 - #18 -- Miscellaneous Revenue Items #1 - # Screen #19 -- Commissions / Closing Cost / To-Be-Named Sales Cost Screen #20 -- Land Acquisition / Override Cost of Sales Screen #21 -- Real Estate Tax Screens #22 - #51 -- Development Costs #1 - # Screen #52 -- Discount-% / Residual Val Profit-% / Index Int-% / Cash Reserve Screens #53 - #54 -- Purchase Note Screens #55 - #57 -- A & D Loan Screens #58 - #59 -- Misc (To-Be-Named) Loan Screens #60 - #63 -- Equity Participation REPORT LOGIC Primary Report: Product Sales Logic Revenue Receipts and Selling Costs Logic Disbursements Logic Discounted Cash Flow Analysis

5 Page Purchase Note Logic A & D Loan Logic Misc. (To-Be-Named) Loan Logic Equity Participation Logic Profit & Loss and Balance Sheet Logic Budget Analysis Report Logic Preliminary Options before Calculating the Budget Report Cost Detail Planning Report Logic and Input The Data Input Screens Two Types of Report Output Report Line Items The Consolidation Feature The Job Cost Link File ASSORTED TOPICS Template File for Primary Report Equity Funding Front Loading Line of Credit Financing at the Consolidation Level File Naming Convention INDEX

6 (BLANK PAGE)

7 Section 1: Introduction Land-PIE (Land Development Property Investment Evaluation) is an easy-to-use and comprehensive software package that addresses the unique planning requirements of the land development industry. It provides the capability of easily generating detailed and accurate cash flow, loan flow, profit & loss, balance sheet, and budget analysis projections for single and/or multiple phase development projects. The forecasts are based on fundamental input variables, and may reflect projects in the initial planning stages or already underway. Land-PIE serves the needs of builders, developers, lenders, investors, appraisers, and consultants. Sampling of Land-PIE Features Screen-by-screen input routines to guide you in the creation or modification of all input assumptions. 15 Sales Product modules each with complete flexibility regarding identification title, number of units, timing of closes, periodic pricing, and optional financing terms extended to the buyers of the product. Nine miscellaneous Revenue Items that you identify with your own titles. A combination of pre-defined cost items as well as 30 cost items that you identify with your own titles. Retention of budget totals wherein forecast budget amounts for cost items are automatically adjusted when actual values are entered so as to maintain the total for the line item as defined by the basic inputs. Time periods (report columns) may represent months, quarters, or years. Annual interest rates are converted automatically. Appropriate column labels are generated automatically corresponding to the start date. A special print routine allowing you to perform custom column totaling of your underlying report time periods. The ability to print out a screen-by-screen data input form or to print your input assumptions for a given project. The ability to assign each cost item to a particular loan or to indicate that is not drawable. The ability to override all model calculations on a period-by-period basis. Pre-financing and after-financing discounted cash flow measures (net present value and internal rate of return). Automatic calculation of equity financing which may reflect wholly owned or joint venture projects. Returns of capital are indicated as cash is available, and preferred returns on Introduction 1-1

8 capital may be included. Maximum flexibility is provided to control all aspects of equity participation. Optional feature of a time-phased consolidation of Cash Flow / Loan Flow / P & L / Balance Sheet reports in order to combine reports for different product types, unique financing, or multiple projects. System Flow Land-PIE is a comprehensive system of interrelated components. This structure lends great flexibility in the planning, analysis, and tracking process. It is important to note that not all of the components need be used to get meaningful results from the system. The Primary Report is the heart of Land-PIE. It is not necessary to use any of the other reporting components although much value can be derived from them. The Primary Report incorporates all of the input needed to calculate the sequence-of-events, cash flow, loan flow, equity participation, profit & loss, and balance sheet for a multiple phase project. The Budget Analysis Report and the Executive Summary are companion reports based on the Primary Report that provide useful summary and analysis information. All three of these reports are produced together as a report family, and you may toggle the report presentation from one to another. Optional Detailed Planning models are available for use at any time during the planning process. These consist of the Cost Detail Planning models wherein you define your chart of accounts for any cost category within the Primary Report followed by performing budgetary and disbursement planning for each account. The summarized results of any of these detailed reports may be accessed automatically as input into the Primary Report simply by providing the name of the report on the Report References screen within the Primary Report input routine. Additional optional reports are the Plan vs Update Variance Report, the Distribution Modification Report, and Consolidated Reports. Land-PIE Reports -- Overview The descriptions below are sections of the Primary Report: Product Sales modules available each allowing you to provide a title, and to include an unlimited number of unit closings, with prices varying by period as well as the option of providing loan finance terms for the land buyers. Cash Flow -- sales revenues, miscellaneous revenues, and cash disbursements over the months of a development project. Loan Flow & Equity Participation -- a detailed forecast of project financing including any combination of a purchase note, an acquisition & development loan, a miscellaneous loan with a title of your choosing, and equity participation to cover unfunded cash requirements either as a wholly owned or a joint venture project. Profit & Loss -- a month-by-month profit & loss proforma using generally accepted accounting principles. Development costs are capitalized, but any cost item may be tagged as a direct expense instead. Introduction 1-2

9 Balance Sheet -- a forecast of the project balance sheet displaying periodic balances for cash, capitalized costs, loans, equity, etc. Budget Analysis Report -- presents the results from a Primary Report showing all revenues, costs and profitability in report columns by Sales Product Type, Grand Total, Per Unit Average, Per Square Foot, Percent of Sales, and Percent of Cost. This report also provides some other key analytical information. Executive Summary Report -- Condenses the key results from the Primary Report or Consolidated Report onto a single page with separate highlight boxes for product summary, project cash flow summary, profit summary, loan finance summary, equity participation summary, and absorption summary. Distribution Modification -- allows for capabilities beyond the scope of the Primary Report or Consolidated Report for distribution of cash to equity participants. You may provide specifications for up to three tiers of target internal rate of return for the Investor partner, one target internal rate of return for the Developer partner, followed by up to 7 tiers of cash distribution amounts. PLAN vs UPDATE Variance Report -- Produces a report displaying the line-by-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific period in the project time-line. This report may also be used to compare different planning scenarios. Cost Detail Planning Report -- Each of the major disbursement line items contained in the Primary Report may be detailed out into as many as 150 individual accounts that you specify. Budgetary amounts and disbursement patterns are planned separately for each account. The aggregate results from any of these reports may be passed automatically to a Primary Report. Report Consolidations -- Land-PIE offers several options for report consolidation. Reports based on time-periods may be consolidated on a time-phased basis, while Budget Analysis Reports may be combined on a "cut and paste" basis. Cash Flow Forecast The Cash Flow Forecast displays the results of a detailed process by which all cost and income items are spread across the months of the project. There are 15 Product Sales modules available each allowing you to provide a title, and to include an unlimited number of unit closings, with prices varying by period as well as the option of providing loan finance terms for the land buyers. Each Product Sales module activated is displayed separately followed by being rolled up into the main Cash Flow presentation. There are also nine Miscellaneous Revenue items available using line titles of your choosing. Point of sales costs include commissions, closing costs and a cost for which you provide the title. In addition to Land Acquisition and Property Tax, there are 30 development cost items for which you provide the title. Each of these costs allow you to indicate a budget total either as a dollar amount or as a percentage of total sales revenue. By default, the budget total would automatically be disbursed straight-line from the first period through the period of the final close. However, you may indicate a date to begin the disbursements as well as specific spread percentages commencing with the start date. You may also make overriding periodic entries, and if a budget amount was entered, the non-override disbursement forecast will be adjusted in order to adhere to the budget total. Each of the costs are assumed to be drawable if loan Introduction 1-3

10 financing is activated unless a tag is set to indicate that it is not drawable. Also, for accounting purposes, the costs are capitalized and then expensed as cost of sales unless a tag is set to directly expense the particular cost item. Development Costs #29 and #30 carry default titles of Management Fee/Investor and Management Fee/Developer with additional input capabilities that lend themselves to these cost items. The line titles may be changed so that the cost items may be used for something else if desired. The Cash Flow Forecast clearly displays the project "sequence of events" and cash flows for sales revenue and all cost categories. The net cash flow before financing is then displayed, and becomes the basis for the pre-financing discounted cash flow analysis consisting of Net Present Value, Internal Rate of Return, and Land Residual Value/Cash. Loan Flow & Equity Participation Land-PIE performs detailed analyses for any combination of a Purchase Note for the acquisition of the land, an Acquisition & Development Loan for the completion of the finished lots, a Miscellaneous Loan for which you provide your own title, and Equity Financing to cover the net funding requirements. You may activate any or all of the loan categories as appropriate for the project. The amount of each loan may be determined as an input loan amount, as a percentage of costs assigned to the loan, or as a percent of sales. Each loan is subject to a separate loan fee percentage and interest rate. The interest rate may be a stated rate or may fluctuate as a stated number of points over a prediction for the index rate. Interest reserve amounts may be stated for each loan. The interest reserve will be withheld from drawable funds, and will be used to cover interest costs until the reserve is depleted. Optionally, you may request that interest draws be made without stating a specific interest reserve amount. Loan draws are made in accordance with the forecast of drawable cash flows. It is an easy matter to override the loan draw amount or to provide a positive or negative increment to add to the calculated loan draw for any period. The model provides flexibility with regard to stating the source of repayment of the loans. It is an easy matter to set up the normal sequence of loans making automatic release payments on prior loans so that no two loans are secured by the same property at the same time. The timing and amounts for the repayment schedules are handled automatically once the source of repayment is indicated. Of course, all loan draw and repayment values may be specifically overridden by input on a period-by-period basis. The Equity Financing category covers net funding requirements so as to maintain a cash balance of zero (or a stated cash reserve amount) until positive cash flows are available to repay the equity balance(s) and any return(s) on equity. Any remaining cash is distributed as available. The equity funding and distributions of cash may be on the part of the Developer alone (wholly owned project) or may represent a joint venture participation between the Developer and the Investor partner. A maximum of flexibility is provided to alter the default rules that apply to the joint venture participation. A cash flow analysis section summarizes the net cash flow before financing, and the loan fees, interest, draws, and repayments for all loans in aggregate. The report then displays net cash flow after financing, cash balance, loans outstanding, maximum equity requirement, and maximum loan exposure. Introduction 1-4

11 The loan flow forecast section of the report shows a summary for each loan activated. A summary for each equity partner is also displayed including the net present value and internal rate of return for the cash participation. Profit & Loss and Balance Sheet Forecast The Profit & Loss Forecast produces a period-by-period income statement for the project based on generally accepted accounting principles. Point of sale costs are expensed directly as incurred at closes of escrow. By default, all other costs are capitalized and posted as Cost of Sales when sales occur based on a calculated ratio of total capitalized costs to total sales revenue. However, any cost item may be tagged to be directly expensed as incurred instead of being capitalized. Balance Sheet assets include cash as well as capitalized cost balances. Liabilities and capital include all loan balances, accrued property tax, net cash invested, and cumulative profit. Sensitivity Matrix: This analysis begins with a Primary Report that is loaded in the display grid. This Primary Report is considered as the Base Case. You initiate the analysis by simply clicking the Sensitivity Matrix selection on the menu bar in the display grid. The Sensitivity Matrix form then appears offering you a selection of different variables that you wish to isolate for your sensitivity analysis. After you have selected your desired matrix variable, you will indicate the number of scenarios (from 1 to 12) that you wish to include in the matrix, followed by entering the incremental adjustments for your scenarios. The resulting report presents report columns with key results for the Base Case and for each scenario. Budget Analysis Report The Budget Analysis Report accesses its input information from a corresponding Primary Report, and presents each line item with a separate column for each Product Type (based on the Sales Product modules activated in the Primary Report) and additional columns for Grand Total, Per Unit Average, Per Acre, Percent of Sales, and Percent of Cost. Land-PIE calculates costs for each budgeted cash flow line item and allocates them to each Product Type on a per-unit basis. The default allocation method is based on relative sales value, but alternative allocation methods of relative acreage or per-unit average may be triggered separately for each line item, if desired. Each column presents per-unit acreage, average sales revenue, number of units, number of acres, per-unit cost allocations, and per-unit net profit. The report includes a Budget Analysis page which displays summary information on a product-by-product and grand total basis. This section presents key profit and product mix ratios. Introduction 1-5

12 Distribution Modification The Primary Report and the Consolidated Report (with re-calc of equity participation) offer complete flexibility in the equity participation area pertaining to payments of returns on equity, returns of equity and profit distributions. Accounts are paid off in accordance with various defaults or alternate switch settings. This command allows for capabilities beyond the scope of the Primary Report. Your inputs dictate the order of cash distribution to the respective partners with the accounts being paid off as cash is distributed to each particular account. You may indicate up to three tiers of target internal rate of return to be received by the investor partner (optional), followed by a target internal rate of return to be received by the developer partner (optional), followed by up to seven tiers of payouts with different percentages going to each partner within the given tier. The report output from this command is exactly the same format as the equity participation in the Primary Report or Consolidated Report, so the modified output may be substituted for the corresponding page(s) of either of those reports. Multiple Investment Partners Land-PIE offers extensive flexibility for simulating equity capital participation between a Developer Partner and an Investor Partner. This participation may be calculated within a Primary Report or a Consolidated Report (with re-calculation of equity participation). Furthermore, the Distribution Modification command may be used to alter the proceeds distribution rules to be based on cash preference rather than account preference. However, the participation for the Developer and the Investor is represented as if each partner is a single entity. Of course, there may be multiple partners within either entity who each participate equally or based on some differing criteria. This command, Multiple Partners, is one of the selections available as part of the Auxiliary Reports command button. This command produces a new report by accessing the overall participation of either the Developer or the Investor from another report that you specify followed by allocating that participation (both capital contributions and distribution of proceeds) among up to 3 partners according to criteria indicated by your inputs. Each of the partners activated will be identified by your own descriptor, and the line item format for each partner s cash flow participation will be identical to that of original overall presentation. PLAN vs UPDATE Variance Report This command produces a report displaying the line-by-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific period in the project time-line. In addition to comparing the actual results for a given project against the original approved plan, this report is useful for comparing results of different planning scenarios before the final plan is submitted for approval. The only thing you have to do to get this pre-formatted report is to select the names of the Primary Reports for the "Plan Report" and for the "Updated Report" and indicate which sequential period represents the "to-date" period. For each line from the Primary Report, the Variance Report displays columns for plan total, update total, over/under plan, and percent over/under plan. These columns are presented for the to-date time horizon as well as for the total project time horizon. A column is also displayed that indicates the "amount to complete" for each line item. This is the updated total amount minus the to-date total amount. Introduction 1-6

13 NOTE: In order to make use of this command, it is important that you maintain a separate Primary Report on your disk that represents the original "plan." The best way to accomplish this is to provide an alternate filename the first time that you modify the "plan" with actual results. Thereafter, you would continue to modify against the updated filename as future actual results are provided. Cost Detail Planning Report This option allows you to plan disbursement amounts for any of the 30 development cost items (where you provided the title) in the Primary Report broken down to the individual account level which may match the accounts from your job cost system, if desired. To avoid double keying of data, certain entries may be accessed automatically via a link file output from your job cost system. For each of the major cost item that you wish to explode into greater detail, you start by custom installing your own model consisting of up to 150 accounts for that cost item. For each account you merely supply the account title and, optionally, the account number from your job cost system if you wish to include the ability to access certain data values that have already been entered. Your custom installed models then serve as the basis for creation or modification of input data as well as the printing of data input forms and/or hard copy of your already entered input data. Of course, you may still use the "Install Model" command to add or modify accounts included in the model. When you install a model for any one of the cost items, you will be given the opportunity to provide a title for that Cost item. Thereafter, that title will be displayed in the directory window anytime the cost categories are displayed. Your title should be the same as the title that you provide for the corresponding cost item in the Primary Report input process. The original cost estimate as well as the disbursement pattern may be planned individually for each account followed by aggregating the accounts to the major category level that may then be automatically passed along to the Land-PIE Primary Report. The original planning process may be updated by making changes to the original cost estimates and by providing actual disbursements. Where actual disbursements are provided, the system will re-forecast the remaining cost to complete. There are two types of reports provided: the first is the Detail Report which presents report columns as the period-by-period detail of key line items for each account followed by all accounts rolled together to the category level. The second report, referred to as the Summary Report, presents one line per account and for the total category with columns labeled "Original Estimate", "Net Change", "Revised Estimate", "To-Date Planned", "To-Date Paid", "To-Date Over/Under", and "Cost to Complete." The data and resulting reports are normally related to a single phase of activity. Since there may be multiple phases of activity for the particular cost category related to a single project, this module offers a convenient time-phased consolidation feature so you can observe the information across the total project horizon in addition to automatically passing the project-level cash flow to the Primary Report. Introduction 1-7

14 Report Consolidations Consolidate Cash Flow -- There are two options for performing a time-phased consolidation of multiple Primary Reports and/or Consolidated Primary Reports. The options differ with regard to whether the Equity Participation cash flow should be consolidated or recalculated. The first option performs a simple additive consolidation wherein the time-phased values from each line item are added together including the results of the equity participation. The discounted cash flow measures are the only values that are recalculated with this option. The second option recalculates the entire equity participation based on the consolidated cash flow after loans and the input parameters that you provide regarding equity participation. In addition to consolidating Primary Reports, Sales & Construction Planning Reports and Detail Cost Reports may also be consolidated on a time-phased basis. Executive Summary -- You may produce an Executive Summary from a Consolidated Report. Consolidated Mix Report: This report is calculated automatically in addition to the Consolidated Primary Report and the Consolidated Executive Summary Report as part of the Consolidation Report Family. This report presents individual lines from each Primary cash flow report that is called into the consolidation allowing you to observe the project-byproject contributions in each period that result in the consolidated total for major line items. The major line items detailed in the report are Units Closed, Gross Sales Revenue, Net Revenue, Total Disbursements Before Loans, Cash Flow Before Loans, Cash Flow After Loans, Total Loan Fees, Total Loan Interest, Total Loan Balance, IRR All Cash, IRR Leveraged, Gross Profit $, Gross Profit %, Profit Before Tax $, and Profit Before Tax %. Since you may call for up to 50 reports into a single consolidation, the number of individual line items that print may be as many as 50. (Note that a report called into a Consolidation may be a Primary or a Consolidated report, so ultimately the Consolidation is virtually unlimited.) The line title for each individual project line is taken from the first report heading that was provided for that Primary or Consolidated Report. Merge Budget Analysis Reports -- The results from the Budget Analysis Reports associated with Primary Reports may be combined into a single report. This "electronic cut and paste" operation accesses the Grand Total column form each selected Budget Analysis Report and places it as a column in the new report with a column label of your choosing. An overall Grand Total column is then computed along with the other standard columns for Per Unit Average, Per Square Foot, Percent of Sales and Percent of Cost. Introduction 1-8

15 Section 2: Sample Report Output Sample Report Output 2-1

16 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL Sgl Family Village A Units Closed Cumulative Closings Acres Closed Price Per Unit 40,000 40,000 40,000 Gross Sales 2,080,000 1,040,000 1,040,000 Closings 2,080,000 1,040,000 1,040,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Sgl Family Village B Units Closed Cumulative Closings Acres Closed Price Per Unit 38,000 38,000 Gross Sales 2,014,000 2,014,000 Closings 2,014,000 2,014,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Office Pads Units Closed 6 6 Cumulative Closings Acres Closed Price Per Unit 100, ,000 Gross Sales 600, ,000 Closings 120, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Amount(s) Financed 480, ,000 Interest Income 17,022 4,200 4,237 4,274 4,311 Interest Received 17,022 17,022 Interest Receivable 4,200 8,437 12,711 Principal Received 480, ,000 Note(s) Receivable 480, , , ,000 **Terms: Financed (%) Annual Interest(%) Accrue Interest= Compound Interest= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Graded Parcel Units Closed 1 1 Cumulative Closings Acres Closed Price Per Unit 250, ,000 Gross Sales 250, ,000 Closings 50,000 50,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Amount(s) Financed 200, ,000 Interest Income 8,904 1,750 1,765 1,781 1,796 1,812 Interest Received 8,904 8,904 Interest Receivable 1,750 3,515 5,296 7,092 Principal Received 200, ,000 Note(s) Receivable 200, , , , ,000 **Terms: Financed (%) Annual Interest(%) Accrue Interest= Compound Interest= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/26/07 09:33:15 1/1

17 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL CASH FLOW REPORT: Total Units Total Acres Units Closed Cumulative Units Acres Closed Cumulative Acres Gross Sales Revenue 4,944, ,000 1,040,000 2,014,000 1,040,000 Receipts: Closings 4,264, ,000 1,040,000 2,014,000 1,040,000 Principal Payments 680, , ,000 Interest Payments 25,926 17,022 8,904 (User Titled Receipts #1) 49,440 8,500 10,400 20,140 10,400 (User Titled Receipts #2) 123,600 21,250 26,000 50,350 26,000 (User Titled Receipts #3) 173,040 29,750 36,400 70,490 36,400 Less: Commissions 98,880 17,000 20,800 40,280 20,800 Closing Costs 123,600 21,250 26,000 50,350 26,000 (User Titled Sales Cost) 24,720 4,250 5,200 10,070 5, Net Receipts 5,068, ,000 1,060,800 2,551,302 1,269,704 Disbursements: Land Acquisition 2,000,000 2,000,000 Property Tax Payments 13,151 7,975 5,175 (User Titled Cost #1) 85,000 25,500 34,000 25,500 (User Titled Cost #2) 20,000 8,000 8,000 4,000 (User Titled Cost #3) 29,664 7,416 7,416 8,899 5,933 (User Titled Cost #4) 40,541 6,081 4,865 6,081 4,865 6,081 6,081 6,487 (User Titled Cost #5) 48,946 6,992 6,992 6,992 6,992 6,992 6,992 6,992 (User Titled Cost #6) 69,216 6,922 13,843 20,765 27,686 (User Titled Cost #7) 59,328 5,933 5,933 8,899 5,933 7,119 5,933 11,866 7,713 (User Titled Cost #8) 90,475 90,475 (User Titled Cost #9) 79,598 11,371 11,371 11,371 11,371 11,371 11,371 11,371 (User Titled Cost #10) 98,880 19,776 19,776 19,776 19,776 19,776 (User Titled Cost #11) 118,656 14,832 14,832 14,832 14,832 14,832 14,832 14,832 14,832 (User Titled Cost #12) 113,712 56,856 56,856 (User Titled Cost #13) 143,376 43,013 28,675 14,338 11,470 28,675 17,205 (User Titled Cost #14) 128,544 20,567 21,852 21,852 21,852 20,567 21,852 (User Titled Cost #15) 281,808 48,885 43,134 48,885 34,507 34,507 28,756 34,507 8,627 (User Titled Cost #16) 187,872 18,787 37,574 18,787 46,968 22,545 37,574 5,636 (User Titled Cost #17) 171, ,744 51,319 (User Titled Cost #18) 192,816 57,845 77,126 57,845 (User Titled Cost #19) 169,085 21,136 21,136 21,136 21,136 21,136 21,136 21,136 21,136 (User Titled Cost #28) 99,869 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 Mgmnt Fee/Investor 49,440 8,500 10,400 20,140 10,400 Mgmnt Fee/Developer 98,880 17,000 20,800 40,280 20, Net Disbursements 4,389,919 2,062, , , , , , , , ,200 Cash Flow Before Loans 678,888-2,062, , , , , , ,735 2,303,577 1,112,504 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Property Tax Expense 13,151 2,083 2,083 2,083 1,725 1,725 1,725 1, /26/07 09:40:42 1/1

18 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL CASH FLOW ANALYSIS Cash Flow Before Loans 678,888-2,062, , , , , , ,735 2,303,577 1,112,504 Loan Fees -39,061-39,061 Interest Paid -130,539-13,487-16,193-21,225-15,175-18,040-25,467-15,862-5,089 Loan Draws 4,006,093 1,701, , , , , , , , ,089 Loan Repayments -4,006,093-1,161, ,206-1,372, , Cash Flow B4 Equity 509, , , ,289 1,118, ,299 Equity Contributions 1,399, , ,771 Return On Equity Paid -61,795-50,827-10, Returns of Equity -1,399, ,462-1,108, ,940 Profit Distribution -447, , Net Cash Flow Cash Balance ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Discounted Cash: Discount Rate (%) N.P.V. All Cash 426, ,781 2,493,354 2,777,513 3,294,438 3,624,259 3,933,298 4,188,206 3,371,353 1,101,490 I.R.R. All Cash N.P.V. Leveraged 403, , , , ,596 1,831,603 1,849,919 1,868,418 1,648, ,831 I.R.R. Leveraged ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Land Residual Value Assumed Profit (%) Developer Profit 494,400 85, , , ,000 Adj'd Flow/Cash 2,184,488-62, , , , , , ,735 2,102,177 1,008,504 Adj'd Flow/Leveraged 2,014,888 1,600,000-1,084, , , ,299 Residual Value/Cash 1,947,212 1,947,212 2,028,989 2,308,505 2,820,740 3,230,823 3,535,928 3,786,862 3,069, ,519 Residual Val/Leveraged 1,939,621 1,939, , , ,898 1,438,168 1,452,549 1,467,075 1,347, ,860 Beg.Loan To Value-% ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Finance Summary: Net Proj Cost Outstandin -514,393 2,101,366 2,374,079 2,879,422 3,197,524 3,485,496 3,719,111 2,880, , ,393 Loans & Eqty Outstandin 2,001,366 2,274,079 2,779,422 3,097,524 3,385,496 3,619,111 2,936, ,057 Less Equity Outstanding 400, , ,000 1,399,771 1,399,771 1,399,771 1,212, , Secured Lns Outstanding 1,601,366 1,874,079 2,379,422 1,697,753 1,985,725 2,219,340 1,724, ,116 Max Cost Outstanding 3,719,111 3,719,111 Max Total Equity 1,399,771 1,399,771 Max Loan Exposure 2,379,422 2,379,422 Max Purchase Note 1,541,276 1,541,276 Max A&D Loan Balance 1,120,004 1,120,004 Max Developer Equity 559, ,908 Max Investor Equity 839, ,863 09/26/07 09:42:52 1/1

19 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL LOAN FLOW REPORT: Purchase Note: (%) of Assigned Cost Total Note Amount 1,590,595 1,590,595 Annual Interest(%) Interest Reserve 2,309 74,689 62,057 49,319 36,475 27,465 18,379 9,218 2,309 Loan Fee 15,906 15,906 Begin Note Balance 1,515,906 1,528,539 1,541,276 1,081,241 1,090,251 1,099, , ,120 Draw Interest 74,689 12,633 12,738 12,844 9,010 9,085 9,161 6,909 2,309 Draw Costs 1,515,906 1,515,906 Repayment -1,590, , , , ,429 End Note Balance 1,515,906 1,528,539 1,541,276 1,081,241 1,090,251 1,099, , ,120 Interest Payment 74,689 12,633 12,738 12,844 9,010 9,085 9,161 6,909 2,309 Loan (%) Project Cost Lender I.R.R ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= A & D Loan: (%) of Assigned Cost Total Loan Amount 2,315,498 2,315,498 Non-Phase Funding 73,899 73,899 Phase Funding 2,241,599 2,241,599 Annual Interest(%) Interest Reserve 2,780 50,744 49,890 46,434 38,053 31,888 22,933 11,733 2,780 Loan Fee 23,155 23,155 Begin Loan Balance 85, , , , ,474 1,120, , ,997 Draw Interest 50, ,455 8,381 6,165 8,955 11,200 8,953 2,780 Draw Costs 2,264,754 85, , , , , , , , ,000 Repayment -2,315, , , , ,777 End Loan Balance 85, , , , ,474 1,120, , ,997 Interest Payment 50, ,455 8,381 6,165 8,955 11,200 8,953 2,780 Loans (%) Project Cost Lender I.R.R ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Investor Loan Annual Interest(%) Begin Loan Balance 100, , , , , ,000 Loan Advances 100, ,000 Repayments -100, ,000 End Loan Balance 100, , , , , ,000 Interest Expense 5, Interest Paid 5,105 5,105 Accrued Interest Bal 833 1,674 2,521 3,375 4,237 Lender I.R.R Investor Loan= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/26/07 09:46:50 1/1

20 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL Developer Participation: Return Annual-% Begin Equity Balance 160, , , , , , ,908 51,970 Equity Contribution 559, , ,908 Return of Equity 559, ,938 51,970 End Equity Balance 160, , , , , , ,908 51,970 Return Accrual 25, ,333 1,333 3,000 4,666 4,666 4,666 4, Return Paid 25,430 20,331 4, End Accrued Return 667 2,000 3,333 6,333 10,999 15,665 End Combined Balance 160, , , , , , ,908 51,970 Profit Distribution 223, ,746 Net Cash Flow 249, , ,908 20, , ,149 Net Cash Balance 249, , , , , , , ,578-26, ,176 Net Present Value 202, ,119 Internal Rate of Return ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Investor Participation: Return Annual-% Begin Equity Balance 240, , , , , , ,400 51,970 Equity Contribution 839, , ,863 Return of Equity 839, , ,430 51,970 End Equity Balance 240, , , , , , ,400 51,970 Return Accrual 36,366 1,000 2,000 2,000 4,499 6,999 6,999 6,999 5, Return Paid 36,366 30,496 5, End Accrued Return 1,000 3,000 5,000 9,499 16,498 23,497 End Combined Balance 241, , , , , , ,400 51,970 Profit Distribution 223, ,746 Net Cash Flow 260, , , , , ,149 Net Cash Balance 260, , , , , , , ,904-16, ,112 Net Present Value 201, ,216 Internal Rate of Return ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Loan Participation Net Cash Flow 5, , ,105 Net Cash Balance 5, , , , , , ,000 5,105 5,105 5,105 Net Present Value Internal Rate of Return Combined: Net Cash Flow 265, , , , , ,149 Net Cash Balance 265, , , , , , , ,799-10, ,217 Net Present Value 200, ,240 Internal Rate of Return ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/26/07 09:48:40 1/1

21 Land-PIE Demonstration File: lp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL PROFIT & LOSS: Sales 4,944, ,000 1,040,000 2,014,000 1,040,000 Cost of Sales 4,351, , ,442 1,772, , Gross Profit 592, , , , ,558 (%) of Sales Direct Expense: Commissions 98,880 17,000 20,800 40,280 20,800 Closing Costs 123,600 21,250 26,000 50,350 26,000 (User Titled Sales Cost) 24,720 4,250 5,200 10,070 5,200 Misc Direct Expenses 207,648 5,933 5,933 34,399 5,933 7,119 37,133 72,286 38, Total Direct Expense 454,848 5,933 5,933 76,899 5,933 7,119 89, ,986 90,913 Interest Income 25,926 5,950 6,002 6,055 6,108 1,812 Total Misc Receipts 346,080 59,500 72, ,980 72,800 Profit Before Tax 509,288-5,933-5,933 84, , , , ,257 Profit Margin(%) ======== = ======== = ======== = ======== = ======== = ======== = ======== = ======== = ======== = ======== = BALANCE SHEET: Assets: Cash Notes Receivable 680, , , , ,000 Interest Receivable 5,950 11,952 18,007 7,092 Capitalized Costs 2,103,450 2,373,146 2,875,480 2,592,582 2,877,201 3,106,283 2,378, , Total Assets 2,103,450 2,373,146 2,875,480 3,272,582 3,563,151 3,798,235 3,076,297 1,004,333 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Liabilities & Equity: Purchase Note 1,515,906 1,528,539 1,541,276 1,081,241 1,090,251 1,099, , ,120 A & D Loan 85, , , , ,474 1,120, , ,997 Investor Loan 100, , , , , , Total Loan Balance 1,701,366 1,974,912 2,481,096 1,800,274 2,089,100 2,323,577 1,724, ,116 Accrued Property Tax 2,083 4,167 6,250 1,725 3,450 4,737 5,175 Total Liabilities 1,703,450 1,979,079 2,487,346 1,800,274 2,090,825 2,327,027 1,729, ,292 Net Cash Invested -509, , , ,000 1,399,771 1,399,771 1,399,771 1,161,482 43, ,288 Cumulative Profit/(Loss) 509,288-5,933-11,866 72,537 72,555 71, , , ,288 Total Liabilities & Equity 2,103,450 2,373,146 2,875,480 3,272,582 3,563,151 3,798,235 3,076,297 1,004,333 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== 09/26/07 09:49:56 1/1

22 Land-PIE Demonstration File: lb-demo.rep Sgl Family Sgl Family Office Graded Grand Unit Per (%) of (%) of BUDGET REPORT: Village A Village B Pads Parcel Total Average Acre Sales Cost Product Mix: Sales Units Total Acres Units per Acre Revenue: Sales Revenue 40,000 38, , ,000 4,944,000 44,143 66, Interest Income 2,837 8,904 25, (User Titled Receipts #1) ,000 2,500 49, (User Titled Receipts #2) 1, ,500 6, ,600 1,104 1, (User Titled Receipts #3) 1,400 1,330 3,500 8, ,040 1,545 2, Less: Commissions ,000 5,000 98, , Closing Costs 1, ,500 6, ,600 1,104 1, (User Titled Sales Cost) ,250 24, Total Net Revenue 40,800 38, , ,904 5,068,806 45,257 68, Disbursements: Land Acquisition 16,181 15,372 40, ,133 2,000,000 17,857 27, Property Tax Payments , (User Titled Cost #1) ,719 4,298 85, , (User Titled Cost #2) ,011 20, (User Titled Cost #3) ,500 29, (User Titled Cost #4) ,050 40, (User Titled Cost #5) ,475 48, (User Titled Cost #6) ,400 3,500 69, (User Titled Cost #7) ,200 3,000 59, (User Titled Cost #8) ,830 4,575 90, , (User Titled Cost #9) ,610 4,025 79, , (User Titled Cost #10) ,000 5,000 98, , (User Titled Cost #11) ,400 6, ,656 1,059 1, (User Titled Cost #12) ,300 5, ,712 1,015 1, (User Titled Cost #13) 1,160 1,102 2,900 7, ,376 1,280 1, (User Titled Cost #14) 1, ,600 6, ,544 1,148 1, (User Titled Cost #15) 2,280 2,166 5,700 14, ,808 2,516 3, (User Titled Cost #16) 1,520 1,444 3,800 9, ,872 1,677 2, (User Titled Cost #17) 1,384 1,315 3,460 8, ,062 1,527 2, (User Titled Cost #18) 1,560 1,482 3,900 9, ,816 1,722 2, (User Titled Cost #19) 1,368 1,300 3,420 8, ,085 1,510 2, (User Titled Cost #28) ,020 5,050 99, , Mgmnt Fee/Investor ,000 2,500 49, Mgmnt Fee/Developer ,000 5,000 98, , Loan Fees/Interest 1,372 1,304 3,430 8, ,600 1,514 2, Total Disbursements 36,889 35,045 92, ,558 4,559,519 40,710 61, Net Profit 3,911 3,715 12,614 33, ,288 4,547 6, ======== ======== ======== ======== ======== ======== ======== ======== ======== Profit Margin (%) /26/07 09:58:00 1/2

23 Land-PIE Demonstration File: lb-demo.rep Sgl Family Sgl Family Office Graded Grand Unit Per (%) of (%) of BUDGET REPORT: Village A Village B Pads Parcel Total Average Acre Sales Cost Product Totals: Product Sales Total 2,080,000 2,014, , ,000 4,944,000 Product Profit Total 203, ,903 75,682 33, ,288 Profit As: (%) of Costs (%) of Sales Dollars Per Acre: Sales Price 80,000 77,462 50,000 25,000 66,811 Net Profit 7,821 7,573 6,307 3,335 6,882 Product Mix As: % of Total Units % of Total Profit Maximum Balances: Cumltv Cost Outstndng 3,719,111 33,206 50, Secured Loans 2,379,422 21,245 32, Total Equity 1,399,771 12,498 18, Before Loans: Net Present Value 426,781 3,811 5, Internal Rate Return Land Residual Value 1,947,212 17,386 26, After Loans: Net Present Value 403,334 3,601 5, Internal Rate Return Land Residual Value 1,939,621 17,318 26, Discount Rate (%) /26/07 09:58:00 2/2

24 Land-PIE Demonstration File: le-demo.rep PRODUCT SUMMARY LOAN FINANCE SUMMARY Avg Total Price/ Sub- Misc. Units Price Revenue Acres Acre Purchase A & D Totals Finance ======== Sgl Family Village A 52 40,000 2,080, ,000 Max Loan Amt 1,590,595 2,315,498 Sgl Family Village B 53 38,000 2,014, ,462 Max Bal Outst 1,541,276 1,120,004 2,379, ,237 Office Pads 6 100, , ,000 Graded Parcel 1 250, , ,000 Loan Fees ($) 15,906 23,155 39,061 Loan Fees (%) Interest Rate (%) Interest Paid 74,689 50, ,434 5,105 Interest Draws 74,689 50, ,434 5,105 Non-Int Draws 1,515,906 2,264,754 3,780, ,000 Total Draws 1,590,595 2,315,498 3,906, ,105 Total Repaid 1,590,595 2,315,498 3,906, ,105 Lender IRR (%) Loan-to-Val (%) Loan-to-Cost(%) Totals ,143 4,944, ,811 PROJECT CASH FLOW EQUITY PARTICIPATION Without Loans After Loans Developer Investor Total Net Cash Flow 678, ,288 Total Equity Advanced 559, ,863 Max Net Cost Outstanding 3,595,929 3,719,111 (%) of Total Equity Internal Rate of Return (%) (%) of Total Cost Net Present Value 426, ,334 Maximum Equity Balance 559, ,863 Land Residual Value 1,947,212 1,939,621 Discount Rate (%) Return Annual (%) Return on Equity Received 25,430 36,366 Profit Distribution 223, ,746 (%) of Profit Distribution PROFIT SUMMARY Management Fee Received Net Profit before Returns on Equity 509,288 Net Present Value 202, ,216 (%) of Gross Sales Revenue Discount Rate (%) (%) of Total Costs Internal Rate of Return (%) Net Profit after Returns on Equity 447,492 ABSORPTION (%) of Gross Sales Revenue 9.05 (%) of Total Costs 9.31 Average Unit Absorption per Sales Month 18.7 Project Duration (months) 9 09/26/07 10:00:17 1/1

25 Land-PIE Cost Detail Demonstration Offsite Improvement (Sample Accounts) File: 1p-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL OFFSITE IMPROVEMEN Grading: Original Estimate 550, ,000 Revised Estimate 550, ,000 Planned Payments 550, ,985 99,990 99,990 99, ,045 Actual / Re-Forecast 550, ,985 99,990 99,990 99, ,045 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Storm Drain: Original Estimate 400, ,000 Revised Estimate 400, ,000 Planned Payments 400, , ,000 Actual / Re-Forecast 400, , ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Sewer: Original Estimate 340, ,000 Revised Estimate 340, ,000 Planned Payments 340, ,000 Actual / Re-Forecast 340, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Water: Original Estimate 200, ,000 Revised Estimate 200, ,000 Planned Payments 200, ,000 Actual / Re-Forecast 200, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Reclaimed Water: Original Estimate 145, ,000 Revised Estimate 145, ,000 Planned Payments 145, ,000 Actual / Re-Forecast 145, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Street Improvement: Original Estimate 580, ,000 Revised Estimate 580, ,000 Planned Payments 580, , , , ,000 Actual / Re-Forecast 580, , , , ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Utilities: Original Estimate 260, ,000 Revised Estimate 260, ,000 Planned Payments 260,000 65,000 65,000 65,000 65,000 Actual / Re-Forecast 260,000 65,000 65,000 65,000 65,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Landscape: Original Estimate 740, ,000 Revised Estimate 740, ,000 Planned Payments 739, , , ,666 Actual / Re-Forecast 740, , , ,667 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= OFFSITE IMPROVEMEN TOTALS: Original Estimate 3,215, , , ,000 1,140, , ,000 Net Change Revised Estimate 3,215, , , ,000 1,140, , ,000 Planned Payments 3,214, ,985 99,990 99, , , , , , ,666 Actual Payments Actual / Re-Forecast 3,215, ,985 99,990 99, , , , , , ,667 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/26/07 13:58:11 1/1

26 Land-PIE Cost Detail Demonstration Offsite Improvement (Sample Accounts) File: 1p-demo.rep Original Net Revised To-Date To-Date To-Date Cost To Estimate Change Estimate Planned Paid Ovr/Undr Complete OFFSITE IMPROVEMENT: Grading: 550, , ,000 Storm Drain: 400, , ,000 Sewer: 340, , ,000 Water: 200, , ,000 Reclaimed Water: 145, , ,000 Street Improvement: 580, , ,000 Utilities: 260, , ,000 Landscape: 740, , , Totals 3,215,000 3,215,000 3,215,000 09/26/07 13:58:53 1/1

27 Section 3: How to Use Land-PIE Selecting a Data Directory (Folder) for Land-PIE Files Your Land-PIE input data files and calculated report files may reside in the same directory (folder) as the Land-PIE program files or in any other directory of your choosing. It is often desirable to maintain one or more data directories distinct from the program directory for easier file management and back-up purposes. You may maintain separate data directories for separate projects and/or users. When you first enter Land-PIE, you will be presented with a dialogue box to either approve the last data directory used, to select a different data directory, or to make a new data directory. This dialogue box may also be called by clicking the Change Data Directory (Folder) command under the Utilities Command Button. You also change the default path if you select a different directory for Open or SaveAs while in the data input mode. Hint lines appear at the bottom of the dialogue box depending on the area that has focus. Any changes you make are accepted if you click OK, while the original directory displayed by the dialogue box will be retained if you click Cancel. The dialogue box for selecting a data directory is shown below: How to Use Land-PIE 3-1

28 Command Buttons -- Main Menu The Main Menu consists of a series of Command Buttons with descriptive labels displayed to the right. This is where you choose the area and function of Land-PIE that you wish to invoke. There is a pop-up menu of commands that is displayed when you activate a Command Button either by clicking on the button or its label or by pressing the letter that is underlined on the button. The various commands on the pop-up menu are activated similarly by clicking on a selection or by pressing the letter that is underlined in the command description. You may call a brief Help Screen that describes the role of the Command Button by pointing the mouse cursor at the button and pressing the F1 key, or by clicking Help on the menu bar and selecting the What s This Pointer which can then be clicked on any of the Command Buttons. The Main Menu is shown below: How to Use Land-PIE 3-2

29 Primary Reports Command Button The Primary Report is the heart of Land-Pie. It contains the calculated period-by-period results for sequence of events, cash flow, loan flow, equity participation, profit and loss statement and balance sheet. The Budget Analysis Report and Executive Summary are additional reports based on the results contained in the Primary Report and, as such, are part of a Family of Reports for a given development scenario. Clicking this button takes you directly to the input mode for creating or modifying assumptions prior to calculating a given Primary Report along with its associated Budget Analysis Report and Executive Summary. This process will Save the data files to your disk and calculate the family of reports which are also written to disk. You will be able to view and/or print any of the reports in the report family at any time, and when you close the view/print mode, you will be returned to the input screen you were on when you launched the Calculate process. Detailed Planning Command Button Cost planning in considerably greater detail than is available or appropriate within the Primary Report may be performed for an extensive list of Product Revenue areas or for any of the 30 development cost which are identified by your own titles. The summarized results of this planning process may be accessed automatically for inclusion within the calculated Primary Report. 50 Product Sales Modules -- The Primary Report offers 15 Product Sales Modules to represent the sales revenue aspect of your development projects. In the event that you may wish to have more than 15 modules, you may accommodate an unlimited number of Product Sales Modules in reports of up to 50 modules (the summary sections of these reports may then be consolidated). This capability is in the form of a separate report (or reports to be consolidated) available from the Detail Input Command Button. Each of the 50 Product Sales Modules within this report is identical to the modules within the Primary Report regarding the input items (one input screen per module), the calculation logic, and the printed output. The summary results from this report (or a consolidation of multiple reports) may be called out to be imported as input to a Land-PIE Primary Report. Cost Detail Planning -- Allows you to define a custom chart of accounts for any major cost item contained within the Primary Report. Once the chart of accounts is defined, the planning for each account includes the budget amount, planned disbursement pattern, and actual to-date disbursements. Results are displayed for each account and for the aggregate of all accounts. The aggregate disbursement flow may be passed on to the Primary Report. You may also perform time-staged consolidations of other reports for the same cost item in order to achieve overlays of different planning increments. How to Use Land-PIE 3-3

30 Consolidations Command Button Consolidate Cash Flow -- There are two options for performing a time-phased consolidation of multiple Primary Reports and/or Consolidated Primary Reports. The options differ with regard to whether the Equity Participation cash flow should be consolidated or recalculated. The first option performs a simple additive consolidation wherein the time-phased values from each line item are added together including the results of the equity participation. The discounted cash flow measures are the only values that are recalculated with this option. The second option recalculates the entire equity participation based on the consolidated cash flow after loans and the input parameters that you provide regarding equity participation. An Executive Summary report is also produced along with the Consolidated Primary Report. A display of the input screen for selecting reports to consolidate is shown below: Executive Summary -- You may produce an Executive Summary from a Consolidated Report. Consolidated Mix Report: This report is calculated automatically in addition to the Consolidated Primary Report and the Consolidated Executive Summary Report as part of the Consolidation Report Family. This report presents individual lines from each Primary cash flow report that is called into the consolidation allowing you to observe the project-by-project contributions in each period that result in the consolidated total for major line items. Since you may call for up to 50 reports into a single consolidation, the number of individual line items that How to Use Land-PIE 3-4

31 print may be as many as 50. (Note that a report called into a Consolidation may be a Primary or a Consolidated report, so ultimately the Consolidation is virtually unlimited.) The line title for each individual project line is taken from the first report heading that was provided for that Primary or Consolidated Report. Merge Budget Analysis Reports -- The results from the Budget Analysis Reports associated with Primary Reports may be combined into a single report. This "electronic cut and paste" operation accesses the Grand Total column form each selected Budget Analysis Report and places it as a column in the new report with a column label of your choosing. An overall Grand Total column is then computed along with the other standard columns for Per Unit Average, Per Square Foot, Percent of Sales and Percent of Cost. Auxiliary Reports Command Button Distribution Modification -- Allows for capabilities beyond the scope of the Primary Report or the Consolidated Report for the distribution of cash. You may indicate up to three tiers of target internal rate of return to be received by the investor partner (optional), followed by a target internal rate of return to be received by the developer partner (optional), followed by up to seven tiers of payouts with different percentages going to each partner within the given tier. The report output from this command is exactly the same format as the equity participation in the Primary Report or Consolidated Report, so the modified output may be substituted for the corresponding page(s) of either of those reports. The input screen for Distribution Modification is shown below: How to Use Land-PIE 3-5

32 Multiple Investment Partners --Land-PIE offers extensive flexibility for simulating equity capital participation between a Developer Partner and an Investor Partner. This participation may be calculated within a Primary Report or a Consolidated Report (with re-calculation of equity participation). Furthermore, the Distribution Modification command may be used to alter the proceeds distribution rules to be based on cash preference rather than account preference. However, the participation for the Developer and the Investor is represented as if each partner is a single entity. Of course, there may be multiple partners within either entity who each participate equally or based on some differing criteria. This command produces a new report by accessing the overall participation of either the Developer or the Investor from another report that you specify followed by allocating that participation (both capital contributions and distribution of proceeds) among up to 3 partners according to criteria indicated by your inputs. Each of the partners activated will be identified by your own descriptor, and the line item format for each partner s cash flow participation will be identical to that of original overall presentation. Selection of Referenced Report: The first step after you click the Multiple Partners command selection, is to select (for a new analysis) or confirm (for a previously saved analysis) a report from which to access the overall equity participation that will be allocated to the multiple partners. You will be presented with a file selection dialogue box from which to make your selection from a list of valid reports that includes Primary reports, Consolidated Primary reports and Distribution Modification reports. Input Description: The input control for the Multiple Partners analysis is presented on five input screens. The default assumption is that the overall cash participation for the Investor Partner will be accessed from the referenced report as the starting point, but you may set an input trigger to indicate that the cash participation for the Developer Partner should be accessed instead. You may allocate the overall participation among three partners with up to four levels of distribution criteria. For each partner, you will provide a descriptive identifier, an annual interest rate percent to be earned on the capital balance, period-by-period percentages to allocate the overall equity capital contributions, and optional overriding return (interest) accruals by period. For each of the four distribution tiers (activate only as many tiers as needed), you will indicate the percentage of profit distribution that will be allocated to each partner until the end of the tier has been achieved. For each tier there are varying criteria that may be indicated for defining the end of the tier as follows: Tier #1 a target internal rate of return for Partner #1 or a break level dollar amount; Tier #2 -- a target internal rate of return for Partner #2, the point at which the distribution to Partner #2 equals the distribution to Partner #1, or a break level dollar amount; Tier #3 a target internal rate of return for Partner #3 or a break level dollar amount; Tier #4 -- a break level dollar amount. PLAN vs UPDATE Variance Report -- This command produces a report displaying the lineby-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific to-date period in the project time-line. In addition to comparing the actual results for a given project against the original approved plan, this report is useful for comparing results of different planning scenarios before the final plan is submitted for approval. The only thing you have to do to get this preformatted report is to select the names of the Primary Reports for the "Plan Report" and for the "Updated Report" and indicate which months represent the Start and End months for the "To-Date" periods. How to Use Land-PIE 3-6

33 For each line from the Primary Report, the Variance Report displays columns for Plan Total, Update Total, Over/Under Plan, and Percent Over/Under. These columns are presented for the to-date time horizon as well as for the total project time horizon. A column is also displayed that indicates the amount to complete for each line item. This is the updated total amount minus the to-date total amount. Note: In order to make use of this command, it is important that you maintain a separate Primary Report on your disk that represents the original "plan." The best way to accomplish this is to provide an alternate filename the first time that you modify the "plan" with actual results. Thereafter, you would continue to modify against the updated filename as future actual results are provided. The Plan vs Update Variance Report interface form is show below: How to Use Land-PIE 3-7

34 View / Print Command Button This command first requires that you select a Land-PIE report category then followed by selecting an existing calculated report within that category. (The report category correlates with the first two characters in the filename to be presented in the selection dialogue box.) After you select an existing calculated report within the chosen report category, the contents of the report will be loaded into the display grid for viewing and/or printing just as it is upon completion of the original report calculation process. (Refer to Display Grid Menu Bar Commands for a description of the Display Grid functionality.) The Report Category selection screen is shown below: Print Output to.pdf File -- When you click the Print selection from the Land-PIE report display grid menu bar, you are presented with your Windows operating system print dialogue box. This dialogue box displays your default printer as the initial selection for output destination, but there is also a drop down list available for you to select alternate output destinations such as other printers, fax output, or various software formatting products. If you have installed a PDF writer software product such as Adobe, you will have the option presented of sending the output to a PDF file which may then be displayed by a PDF reader. How to Use Land-PIE 3-8

35 (Adobe offers their PDF reader software as a free download.) PDF files are a very convenient way to capture print output for storage purposes and/or for electronic distribution to others. For your convenience, we have obtained proprietary license rights to distribute free internet downloads for a PDF writer product named PDF-XChange 3.0. If you download and install this software to a computer where Land-PIE is loaded, then you will have the option of using its robust capabilities for Land-PIE print output to PDF files. Our license rights allow for unrestricted output of PDF files, whereas if you select this output resource in conjunction with other application software, you get the Buy Me Now watermark on the PDF output. If you register the product for a nominal fee from Tracker Software Products Ltd., you may use it in conjunction with all of your application software. Land-PIE has been specifically integrated with PDF-XChange 3.0 so that when you select this as your output source, it will automatically select an output filename that coincides with your active data path and report filename. You may easily change the filename including selecting a filename that already exists. If the filename already exists, you may select among the options of overwriting the file contents, or of inserting the new output at the beginning of the file or appending to the end of the file. So, in this way, you can easily create a PDF file that is named for a particular project containing several different formatted report outputs all pertaining to the same project. This is a very powerful and exciting feature! Each time you write to the PDF file, you may select formatting options such as page orientation, font, shrink to fit, etc. Immediately after the contents are written to the PDF file, the system will invoke the Adobe PDF reader to display the output for your review. Data Forms Command Button These selections provide you the option of printing a blank data input form or of printing the existing assumptions from a given data input file. The printed forms present the input items grouped according to the screen number on which they are found within the corresponding input prompting program. The option for printing a data input form prints all input items with the number of time periods that you select for time-dependent items. This option allows you to "pencil in" your assumptions before you or someone else enters them. The option for printing your existing assumptions offers you the option of printing all input items whether activated or not, or of omitting any items that you ignored during the input process. How to Use Land-PIE 3-9

36 The control form is shown below as it would appear before you invoke the printing of existing assumptions from a data file: Goal Seeking Command Button: Several Goal Seeking command choices are available by clicking the Goal Seeking Command Button on the Main Menu. These commands automatically adjust the Land Acquisition value within a Primary Report in order to achieve a specified target result for project Net Present Value, Internal Rate of Return, Profit as a percent of sales, Profit as a dollar amount or a calculated Land Residual Value that is equal to the Land Acquisition Cost. You may also select a command to determine the Discount Rate percent that will result in a calculated Land Residual Value equal to the Land Acquisition Cost. Where appropriate, you will select a command that dictates whether the target value is based on cash flows before loans or after loans. The financial viability of a development project often hinges on the amount paid for the acquisition of the land. These Goal Seeking commands are of great value during the land purchase negotiation process in that they allow you to determine the exact land acquisition cost that would allow the project to achieve a profitability yardstick that meets your acceptance criterion. Of course, all other assumptions regarding product mix, density, sales prices, absorption, and cost disbursements must be validated before invoking the Goal Seeking process. An altered value for Land Acquisition may affect the Property Tax expense and/or Loan Interest expense depending on your input assumptions related to these items, and these relationships will be accommodated automatically as part of the Goal Seeking process. How to Use Land-PIE 3-10

37 After you click a command from the Goal Seeking pop-up menu, a form will appear requesting you to select a Primary Report that will undergo the desired adjustment processing. For those commands that adjust the Land Acquisition cost to achieve a specified target value, you will be prompted for your desired target value. Land-PIE will then reprocess the report logic on an iterative basis while making appropriate adjustments until the target result is achieved within a small tolerance. The mathematics of interpolation are built into the iterative process to maximize efficiency. The results will be deposited into a report having the letters SEEK appended to the original report filename, and will be immediately presented on the display grid. For example, if the original Primary Report is named lp-ranch.rep, then the adjusted report will be named lp-ranchseek.rep. The Primary Report disbursement values for Land & Acquisition, whether they were input directly or calculated based on lot takedowns, will be adjusted up or down by applying trial percentage increments. Therefore, you must indicate some assumed disbursement for Land & Acquisition in the original Primary Report or else the percentage adjustments will result in zero making it impossible for the Goal Seeking process to achieve a solution. It is important to note that the Goal Seeking process does not change the original input data contained in your Primary data file. Rather, it displays what the altered Land & Acquisition disbursement(s) would have to be in order to achieve the desired results. Also, there is no Budget Analysis Report or Executive Summary Report produced in conjunction with the Goal Seek report. So, if you wish to alter the original input assumption to reflect the adjusted value and to view the corresponding Report Family, you will have to open the Primary input data file, make the appropriate change and recalculate the report family. Note regarding Internal Rate of Return Goal Seek: The internal rate of return calculation is solved through an iterative process that determines the discount rate which results in a net present value equal to zero. There are certain cash flow streams for which the internal rate of return cannot be solved which, in turn, makes it difficult for the Goal Seeking process to arrive at the proper adjustment to achieve the desired target within a reasonable number of iterations. This may be the case if you are seeking a desired internal rate of return for the leveraged (after loans) net cash flow. If you should receive a message that the Goal Seek operation has failed to converge on a solution after the maximum number of iterations, you might try this alternate approach: Open the original Primary data file, change the Discount Rate to be equal to your desired internal rate of return, recalculate the Primary Report with this discount rate, and then perform a Goal Seek process for Net Present Value (after loans) requesting a target Net Present Value equal to zero. When this target is achieved, you will see that the Internal Rate of Return on the report is equal to the Discount Rate (i.e., your desired IRR). This solution works because the Net Present Value can always be solved, so there are no discontinuities involved in the interpolation process. How to Use Land-PIE 3-11

38 The Main Menu with the Goal Seeking Command Button activated: Utilities Command Button Change Data Directory (Folder): (Refer to the first topic in this section for a discussion of this item) Inputting and/or Calculating Assumptions Most of the commands available from the pop-up menu associated with a Command Button on the Main Menu execute specific input routines that prompt you for your input assumptions related to the particular Report that you have selected. You will be able to create a new set of input assumptions, modify an existing set of assumptions, or merely calculate a report from the existing data file once it has been opened. The discussion that follows pertains to all of the input routines in general. Screen No. 0: The initial screen (General Information / Screen No. 0) sets the stage for the remainder of the input file creation or modification. You will first indicate whether you wish to create a new file or modify an existing file by making a selection from the File menu item which will opened automatically when Screen No. 0 is first presented. It is not necessary to select New as you How to Use Land-PIE 3-12

39 may simply begin typing your entries into the displayed text boxes. To Open an existing file, you may either click or type the number associated with one of the recently opened filenames displayed on the drop down menu or click Open. The program will display the names of existing files that meet the filename criteria within the data directory folder that you have selected. You may change the search directory if desired. After you select a filename, the program will read all of the contents of that file into memory. You may choose to save your modified file with a new filename by clicking the SaveAs menu selection under the File menu item. Otherwise, the modified data will overwrite (with a warning) the contents of the original file when saved. The program will force you to adhere to the Land-PIE file naming convention. The remainder of Screen No. 0 deals with setting up the number of columns, the start date, time period type as months, quarters or years (time period column labels are generated automatically based on the start date and time period type), and report headings. Sample Screen No. 0: Report References (Primary Report): If you choose to make use of the optional front-end Cost Detail Planning Model for any of the eligible cost line items, you may request automatic access of the results from any of those reports as input into the Primary Report. You do this by selecting the desired filename for a given labeled text box on the Report References screen. The results will be accessed automatically during report calculation and will be incorporated into the Primary Report. The 30 How to Use Land-PIE 3-13

40 Cost Detail Report categories will carry the generic category titles shown below until you install a chart of accounts model for a given cost item and provide a title of your choosing which will then appear on this form. If you pass the results from a Detailed Planning Report, the period-by-period values from that report will supersede the values calculated from the variables input into the Primary Report. The only exception is that a non-zero entry provided as an "Override Payment" will become the final value selected for that time period. The Report References screen is shown below: Automated Import ACTUALS Capability: Land-PIE features the ability to enter amounts to override the period-by-period calculated values for any line item. This allows you to make adjustments to the forecast or to enter actual values as they become available. In most cases, the remaining forecasted values are automatically adjusted to adhere to a budgeted total after posting the override entries. As a practical matter, the actual values are usually entered into a job cost or general ledger system. This system might then summarize the detailed line items into higher levels and How to Use Land-PIE 3-14

41 perhaps provide a print out which could serve as a guide for manual entry into a Land-PIE primary data file. The command button, "Import ACTUALS, appears on the File References screen accessed from Screen No. 0 as part of the Primary Report input routine. Here is a review of the "Import ACTUALS" functionality included in the Land-PIE program: 1) The file selection box that appears when you click the "Import ACTUALS" button on the "File References" screen will display files existing in your data path folder where the filename extension is required to be <.csv> with the first 2 characters being <tp>. 2) The text on the lines within the file may be anything you want, but to qualify for insertion into the primary data file as "Actual" values entered on the relevant Primary "Override" input line, the first entry prior to a comma must be one of the line numbers from the Index list (which will be provided to you upon request). 3) The format for a comma delimited "Actual Values" line is: A) Line Number for the Override item. B) Any desired title with or without quotes -- quotes required if there is an embedded comma. (This item is optional for readability of the file only -- the program throws it away.) C) As many comma-delimited Actual Values as are to be read in. 4) The line numbers may be in any order, and it doesn't matter if any of them are not included. 5) Any line prior to the first "Actual Values" line may provide a start date (and nothing but the date) in any valid format for a date (e.g., 4/1/2003 or or April 1, 2003 or 1 April, 2003 or whatever date format). 6) If a date is not read prior to the first "Actual Values" line, then the default assumption is that the start date for Actual Values is the first period (start date) for the Primary data file. 7) If a date is read prior to the first "Actual Values" line, then it will be validated as being as/of or after the start date for the Primary data file and as/of or before the final period of the Primary data file. It either of these conditions is violated, a message box would appear informing you of the error and offering the choice of entering a proper start date for Actual Values or of canceling. If the date is validated, then the Actual Value(s) will be inserted as of that date. 8) There may be as many Actual Values (separated by commas) as desired, but any values that extend beyond the final period of the Primary input horizon will be discarded. (Note: the number of periods on Screen #0 of the Primary input could be increased followed by repeating the "Import ACTUALS" command in order to capture the discarded values.) Note: The above is a general description of the functionality that is included with this release version of Land-PIE. In order to take advantage of this feature, you will need to create or obtain the necessary functionality to output the data from your job cost or general ledger system. If you wish to do so, please contact Customer Support ( ) for more details to assist in your effort. How to Use Land-PIE 3-15

42 Data Entry Screens: The programs display sequential input screens. Each screen will present several input items at a time and provides a header at the top to describe the items on the screen in general as well as the screen number. Each input item on the screen will be preceded with a short title that is always displayed. In addition, there will be one or two hint lines at the bottom of the screen to provide a more detailed explanation of the particular input item that has the focus. If you are creating new input assumptions, all items will appear with zeros or will be blank until you provide entries. If you are modifying previous assumptions, the entries will be displayed so that you may change them, if desired. You may move among the various input items either by using the mouse to click a desired text box or its label or by using direction keys as displayed on the bottom right of the screen. Selections on the Menu Bar are available to select a desired screen, calculate a value by entering an arithmetic expression, copy the previous entry one period at a time, copy the previous entry through all remaining time periods (whether visible on the screen or not), call for a trend, or to invoke the Help mode. The Tab key or Enter key moves you to the next text box, while Shift Tab moves you to the prior box. You may make a selection from the File menu item at any time. Sample Data Entry Screen: How to Use Land-PIE 3-16

43 INPUT SCREENS MENU BAR COMMANDS Commands are grouped in selections on the menu bar at the top of the screen. Some menu selections carry out an action immediately while others display a drop down list so that you can select an option. Choosing a Menu Bar item by using the mouse: Click the item on the menu bar. Depending on the selection, a drop down list will appear or the action will occur immediately. In the case of a drop down list, you may then click the desired option. To close the drop down list without making a selection, simply click outside the drop down box. Choosing a Menu Bar item by using the keyboard: You activate the menu bar by pressing the Alt or F10 key. Then press the key matching the underlined letter in the desired menu selection. To close a drop down list without making a selection, press the Esc key. File (Menu Bar Command) This menu bar command produces a drop down list with the following sub-commands: New -- Select this command only if you have data resident in memory and wish to begin a new file with the option of saving the current data that is in memory. Otherwise, you may simply begin making entries without selecting New. Open -- Presents a dialogue box displaying available files from the most recently established directory path. You may change the path by selecting a new drive and/or directory (folder) designation which will then change the file selections showing those available in the changed path. Hint lines at the bottom of the dialogue box will inform you of appropriate actions. Save -- Writes the current data file to the disk. If no filename has been established, then the SaveAs dialogue box will appear. SaveAs -- Presents a dialogue box wherein you type the desired name for the file. You may change the path by selecting a new drive and/or directory (folder) designation. The leading characters of the filename must conform with the filenaming convention indicated in the "List Files of Type:" box. Hint lines at the bottom of the dialogue box will inform you of appropriate actions. (Recent Files) -- As you save files in accordance with the filenaming convention associated with the area in which you are working, a list of up to 6 files will be presented beginning with the most recently saved file. You may simply click on a filename or type the number associated with the filename to open that file. Calc / Display Report (and Save)-- Writes the current data to disk, followed by calling the model processing engine, then followed by calling the View/Print routine to load the report into the display grid. After viewing and/or printing your report, you will be returned to the point you were at when you invoked the Calc command. Note: If the data entry pertains to a Primary Report, then the drop down menu will present choices for calculating and displaying either the Primary Report, the Budget Analysis Report, or the Executive Summary. Choosing the Budget Analysis Report or the Executive Summary will allow you to make preliminary entries such as Custom Column Labels for the product types or modifications to the allocation How to Use Land-PIE 3-17

44 methods. The report that you select will be the first report displayed in the grid. Regardless of which one you choose, the entire set of reports will always be calculated in synch with each other. You may toggle from one report to another by selecting the Report Family menu selection while the display grid is active. Main Menu -- Returns directly to the Main Menu. If any changes have been made to the data file in memory, you will be given an opportunity to save the file to disk prior to returning to the Main Menu. A sample screen with the File menu opened is shown below: Report (Menu Bar Command) The Report menu item will automatically Save any changes to your data file followed by calling the processing engine to process the input data with the appropriate Land-PIE model in order to display the resulting report on the display grid. For the Primary or Consolidation modes, this menu selection is the equivalent of selecting the Primary Report on the drop down menu from the File menu item. For these modes, all reports in the Report Family are calculated so that you may toggle among the other reports in the family. How to Use Land-PIE 3-18

45 Edit (Menu Bar Command) This menu bar command produces a drop down list with the following sub-commands: Undo (Data Entries) -- Land-PIE features an Undo capability which allows you to restore the previous entry that existed prior to making a change for any entry on the data screens. The Undo values will be retained for as long as the data file is open (even if you calculate and view the report), and are erased when you close the file or open a new file. If there is no Undo value available for the text box with focus, then the Edit menu drop down list will display Can t Undo with disabled status. Undo Time Series (Data Entries) -- If the text box with focus is part of a time series, then an additional item is presented to Undo Time Series that will be enabled if there are any Undo values from that text box forward in the time series. You may click Undo Time Series to restore all the previous values of the time series from the current text box forward. If there are no Undo values available for the time series from the current text box forward, then the Edit menu drop down list will display Can t Undo Time Series with disabled status. Undo Calendar Date Shift -- On Screen No. 0, if you change the report start date, you will be prompted for a decision to Shift the data entries (Yes) so as to retain the calendar dates for the entries, or to simply retain the sequential orientation for the data entries (No shift). If you choose to Shift the data, certain entries will be lost if they fall off the front end or the back end of the revised time line. The Undo Calendar Date Shift item is available from the Edit drop down list on the menu bar for Screen No. 0 if (and only if) you have changed the report start date and chosen to Shift the data. Clicking this item will restore the original report start date and recover the entries that existed prior to making the selection. This is especially useful if you made the selection by accident without understanding the implication. You could then change the date again and answer No to the prompt for shifting the data. Insert Mode / Replace Mode The cursor behavior is controlled by whichever of these two modes is has the check mark. Insert Mode means that keystrokes typed in a text box would be inserted ahead of the cursor unless text was selected for replacement (highlighted) by double clicking within the text box or swiping specific text. Replace Mode dictates that when you enter a text box, the text will be immediately highlighted such that any typing entered prior to moving the cursor will replace the highlighted text. When in this mode, you must move the cursor to eliminate the highlighting if you wish to insert text rather than replace text. Insert Mode is the default mode when you initiate a Land-PIE session, but you may click the Edit menu item to change your preference. The selected setting will remain intact for the duration of the Land- PIE session until a subsequent change is made. Notes File (Notepad) -- Have you ever wished that you could maintain an organized system to store notes about your background calculations, scenario assumptions or other information needed to jog your memory regarding a given set of input data? Now, when you have any data file open in the data entry mode, Land-PIE offers a selection associated with the Edit menu bar item labeled Notes File (Notepad). Clicking this item will immediately open a text file using the Notepad text editor complete with all of its editing and printing features. The file will carry the same name as the data file you are working on except for a.txt filename extension. If you have previously saved a Notes File having this name, then that file will be opened for you to observe your previous entries and make modifications and/or additions. Otherwise, a new file will be opened for you to begin entering notes. This text file will remain open until you close it. If you click outside of the Notepad window, the window will be minimized to your task bar. You may reactivate the Notepad window either by clicking on the task bar icon or by selecting the Notes File (Notepad) item again. You will be prompted How to Use Land-PIE 3-19

46 to close the file if it is still open when you exit the data input associated with the file. The file will be saved to a new name if you invoke Save As to rename your data file. The contents of the file may be printed directly from Notepad or easily copied to another Windows application. CopyPrior, SpreadPrior, CurrTotal (Menu Bar Commands) These menu selections are enabled only when a multiple-period input item has the focus. CopyPrior: Causes the value from the previous period to be copied into the current text box with focus, and focus shifts to the next text box. This is a useful way to easily enter straight line values for a designated number of periods. If the first period has focus, then a zero (blank) will be copied. SpreadPrior: Causes the value from the previous period to be copied into all remaining periods whether or not those periods are currently visible on the screen, and focus shifts to the next input item on the screen. If the first period has focus, then zeroes (blanks) will be copied into all periods which is a quick way to zero out previously entered values. CurrTotal: Causes a message box to appear which displays the running total of all entries for the input item up to and including the period with focus. Click OK or press Enter to close the message box. Trends (Menu Bar Command) This menu selection is enabled only when a multiple-period input item has the focus and, when activated, produces a drop down list with the sub-commands described below. Each command will replace the values in the current period and all subsequent periods for the input item (whether or not they are visible) with calculated values according to the trend selected. You will be presented with an input box prompting you for an entry needed to calculate the trend. If the period with focus is the first period, then the prior value is assumed to be zero and certain trends are not allowed resulting in the appearance of a message box to that affect. After you execute a given Trend, the results appear in the periodic text boxes immediately. You will be prompted to confirm that you want to post the results (or you may select Cancel to restore the previous entries). Add to Existing Values -- This trend allows you to indicate an amount (positive or negative) to be added to each existing value in the time series beginning with the time period that has focus. If an existing value is zero (blank) it will remain unchanged. The default entry in the prompt box is 0 (zero) which would leave the existing values unchanged. Factor Existing Values -- This trend allows you to indicate a factor (positive or negative) to be applied to each existing value in the time series beginning with the time period that has focus. The default entry in the prompt box is 1 which would leave the existing values unchanged. Round Values to designated number of decimals -- Often the use of other Trends results in calculated values that may be expressed by as many as 8 decimal positions. In case you might wish to round these values to shorter representations, this trend allows you to indicate the number of decimal positions for rounding (the default selection is zero decimals). Note: the accuracy of the total value of a time series does not suffer from this rounding, e.g., a spread of 100 (as in 100%) displayed to 8 decimal positions will still total to 100 even after rounding to the nearest whole number. How to Use Land-PIE 3-20

47 Linear from prior value by a specified increment -- Prompts for the increment of change from period to period. Each period will be calculated by adding your input value to the value in the preceding period. Linear from prior value to an Ending value -- Prompts for a value for the ending period. A straight-line increment will be calculated such that when the value for each period is incremented from the prior value, the value in the final period will be equal to your input target value. Total value spread straight-line over designated periods Prompts for a total value to be distributed and the number of periods over which to spread the straight-line amount. The value divided by the number of straight-line periods will be placed in that many periods beginning with the period that had focus when the command was selected. If the number of periods entered would extend beyond the final period, then the number of periods is adjusted to extend to the final period only. Total Value distributed as S Curve over designated periods -- The S Curve is so named because a graph of the cumulative values resembles the letter S. This is the same concept as the area under a Bell Shaped Curve ( a normal distribution). The significance of the S shape is that the trend starts off slowly, accelerates to a peak, and then trails off. This pattern is common in many practical situations including disbursement of a total project budget distributed over several time periods. The new trend selection, Total Value distributed as S Curve over designated periods, prompts you for the total value to distribute and the number of periods for distribution beginning with the period that has focus. The periodic values will be distributed to resemble a Bell Shaped Curve with a peak at the middle and symmetrical values on either side of the middle. For an even number of periods there will be two peak values; while an odd number of periods will have one peak value. Compound prior value by a specified Percentage -- Prompts for a percentage rate for compounding the prior value. Each period's value is calculated by increasing (or decreasing) the value from the prior period by the input percentage. This trend cannot be established while the cursor is in the first period. Average of prior values + a percentage -- Prompts for a percentage to increase average of prior values. The value for each period will be a constant value representing the average of all periods preceding the period with focus increased (or decreased) by the input percentage. The input percentage may be zero which results in simply repeating the average value. This trend cannot be established while the cursor is in the first period. Cycle derived from prior values plus a percentage -- Prompts for a percentage to increase prior cycle values. The values in all preceding periods represent a cycle which defines the basis for filling the remaining periods. The cycle will be repeated with each value being increased (or decreased) by applying the input percentage to the corresponding value from the previous repetition of the cycle. The input percentage may be zero which results in simply repeating the cycle unchanged. This trend cannot be established while the cursor is in the first period. Shift data right or left Prompts for the number of periods to shift the data to the right (positive value) or left (negative value). Data entered in periods prior to the period with focus when the Trend is invoked will remain intact. Copy Data Array to Windows Clipboard: This item is not actually a trend function that will serve to populate the time series text boxes, but rather provides the first step of a powerful Copy and Paste capability. Two other How to Use Land-PIE 3-21

48 selections from the Trends list, Paste Clipboard Data Array (Overwrite Entries) and Add Clipboard Data Array to Existing Values allow you to populate time series text boxes by either pasting or adding period-by-period values that have been copied to the Windows clipboard. Normally, you would have to copy data array values to the Windows clipboard from an Excel spreadsheet or a Land-PIE report display before you would be able to use the appropriate Trend function to populate the data into a Land-PIE time series input item. The Copy Data Array to Windows Clipboard Trend item allows you to copy data entries directly to the Windows clipboard from a given time series item while in the input mode (beginning with the time period that has focus when you invoke the Trend selection). In this way, you may then use these entries to populate any other time series input item(s) by using the appropriate Trend selection to Paste or Add these clipboard values. For example, you may have used a Trend selection to produce a specific disbursement spread pattern that would also be desired for other cost spread items. You could use this Trend selection to copy those spread percentage entries to the Windows clipboard so you could paste them wherever else you needed the same pattern. Paste Clipboard Data Array (Overwrite Entries) --The Windows operating system provides a powerful capability for copying and pasting information to and from the memory resident Windows Clipboard. Land-PIE users who are familiar with this capability have always been able to copy and paste into specific individual input text boxes. However, the clipboard is also capable of storing an array of text (or data) elements, for example, a range of cells copied from a spreadsheet or from a Land-PIE report display. Such a data array may be pasted into a range of time-period input text boxes. Assuming that you have copied a data array (usually a range of cells from a spreadsheet or report display), you may paste the data into successive period input boxes as follows: Position the cursor into the time-period text box where you wish the first data element to be entered, then click the Trends menu item followed by clicking the Paste Clipboard Data Array selection from the drop down list. The data elements will automatically be pasted into successive text boxes. If there are more array elements than there are remaining time periods (the time periods need not be visible in the current set of text boxes), then the excess array elements will be discarded. There are a number of ways to copy a highlighted range of cells from a spreadsheet or report display to the clipboard: right-click and select the Copy option, or simultaneously press the Ctrl key along with the C key or the Insert key. Add Clipboard Data Array to Existing Values -- This selection is related to the immediately preceding Trend selection Paste Clipboard Data Array (Overwrite Entries) in that it allows you to paste cell-by-cell data values that have been copied into the Windows clipboard. However, it differs in that it will add the clipboard cell values to the respective values that are already present in the time period text boxes as opposed to replacing the respective text box values. How to Use Land-PIE 3-22

49 A sample screen with the Trends menu opened is shown below: Calculator (Menu Bar Command) This command produces in input box for you to type a mathematical expression. After you complete your expression, you may click OK or press Enter which causes a message box to appear displaying the result. You may then post the result to the text box that had focus when you invoked the calculator command by again clicking OK or pressing Enter. To return to the input screen without posting the result, Click Cancel or press Esc. Arithmetic operators are evaluated in the following order of precedence: Exponentiation (^) Negation (-) Multiplication and division (* or x, /) Addition and subtraction (+, -) When multiplication and division occur together in an expression, each operation is evaluated as it occurs from left to right. When addition and subtraction occur together in an expression, each operation is evaluated in order of appearance from left to right. Parentheses can be used to override the order of precedence and force some parts of an expression to be evaluated before others. Operations within parentheses are always performed before those outside. Within parentheses, however, operator precedence is maintained. How to Use Land-PIE 3-23

50 SelectScreen (Menu Bar Command) This command produces a large list box displaying the screen headings and screen numbers for the available input screens. The highlighted selection within the list box will be the screen that had focus when you selected this command. You may scroll through the various screen headings which changes the highlighting. You may select a desired screen in any one of the following methods: -- Press Enter or click OK to select the highlighted screen or -- Double click on the desired screen header or -- Type the desired screen number and press Enter or click OK You may click Cancel or press Esc to return to the screen that you were on when you invoked the SelectScreen command. The screen is shown below: How to Use Land-PIE 3-24

51 SelectSection (Menu Bar Command) This command produces a drop down list displaying the major Land-PIE input sections. Clicking any of the selections will take you to the input screen that begins the selected section. Some of the sections have only one input screen while the Product Sales section consists of one screen for each of 15 products, and the Development Costs section has one screen for each of 30 development cost items. A sample screen with the SelectSection menu item selected: How to Use Land-PIE 3-25

52 Detail Accounts (Menu Bar Command) (Direct link between Primary Report Input and Detailed Planning Input) Detailed Planning reports consist of the Cost Detail Planning Reports which are available for each of the 30 major development cost line items in Land-PIE. Each of the major disbursement line items contained in the Primary Report may be detailed out into as many as 150 individual accounts that you specify. Budgetary amounts and disbursement patterns may then be planned separately for each account. Previously, these detail planning functions were accessed by selecting the Detailed Planning command button on the Main Menu. (Refer to the description earlier in this section of the manual.) While that command button is still available, there is a direct link from the Primary Input routine to and from the detailed planning process, thus allowing you to drill down to the Detailed Cost planning area. When you have finished with the detailed planning process (data input and report creation), you will have the opportunity to return directly to the Primary Input process where you may link the detailed report for import into the Primary Report. The "drill down" function may be invoked from any Primary Input screen that deals with a major cost item that can support a detailed chart of accounts wherein menu bar item labeled Detailed Accounts will be enabled. For all other Primary Input screens, this menu item will be disabled on the menu bar. Message boxes will be presented to explain the process and allow you to choose among options. If you the select the Detailed Accounts option for a major cost item that does not have a previously installed chart of accounts, you will be prompted with the option of creating a chart of accounts before you enter the associated data assumptions and create the detailed cost report. You will be able to go back and forth between the Primary Input area and the Detailed Input area. When you create a chart of accounts for Development Cost #1 - #30 (to-be-named cost items), you will have the opportunity to provide your own line title for the major cost item. The line title that you enter on the Primary Input screen for the corresponding major cost item should have the same line title for the sake of consistency. Land-PIE will automatically assign to-be-named line titles on a matching basis when it loads a primary data file (unless you have already entered a line title which would then be retained). Help F1 (Menu Bar Command) The F1 key is a shortcut key for invoking the Help engine. A general Contents screen will appear from which you may click any of several information categories. Once within a general category, you may scroll among the associated Help screens by clicking the forward or backward scroll symbols ("<<" and ">>") at the top of the screen. You may click Search to search for information associated with a key word or phrase. All of the standard Windows Help engine features are at your disposal. How to Use Land-PIE 3-26

53 GRID DISPLAY MENU BAR COMMANDS Commands are grouped in selections on the grid display menu bar. Some menu selections carry out an action immediately while others display a drop down list so that you can select an option. Print, Print Preview (Menu Bar Commands) These commands provide the standard Windows capabilities Printing or Print Previewing the contents of the grid display. GoTo (Menu Bar Command) Report Section: This produces a pop up menu displaying the major sections that are available. You may click on your selection to change the grid view to the top of the selected section. The original contents of the grid are still loaded, but this is a quick alternative to navigating the grid contents be instead of using the keyboard or scroll bar capabilities. Line Number -- This produces a dialogue box in which you may enter a report line number that you wish to present as the top line of the display. The dialogue box will initially display the line number for the line that is currently at the top of the display. If the Display Model Line Numbers option is not currently turned on, then this option will be turned on when the display changes. Options (Menu Bar Command) Display (Remove) Column Numbers, Display (Remove) Model Line Numbers: These items allow you to toggle between displaying or removing the Column Numbers and/or Model Line Numbers on the display grid. Depending on the type of report being displayed, there is a default setting as to whether or not the Column Numbers are displayed (e.g., they are turned on for reports with periodic columns and turned off for non-periodic column reports such as the Budget Analysis Report). You may change the Column Numbers option for the current display, but it will revert to the default when you reload the report. On the other hand, the option for Model Line Numbers will begin with your default (initially Off unless you have stored it as On as described below under Reload Report w/ New Selection Parameters). While your default setting remains stored, it will remain temporarily changed for the remainder of your Land-PIE session in accordance with changes you make using this Display (Remove) Model Line Numbers option. Print with Frame Only, Print with Grid Lines: These two items are mutually exclusive (since the display with Grid Lines includes lines around the outside perimeter) with the active selection being indicated by a check mark. If you want neither of these selections, you may click on the selection with the check mark to turn it off. The default option is Print with Frame Only which will be activated each time you begin a Land-PIE session. Center Report Horizontally: This is the default (indicated by a check mark) which causes a report to be centered horizontally on the page when there are fewer columns than the page width. This option will be activated each time you begin a Land-PIE session. You may turn off the check mark by clicking this option which will cause the columns to be left justified on the page. How to Use Land-PIE 3-27

54 Page Margin Settings, Page Order for Print: Your settings for page margins (top, bottom, right and left) as well as your preference for page print order (across versus down) will be stored in a file along with your other default settings. The margins are indicated in units equaling 1/72 of an inch. The original defaults are: Top = 40, Bottom = 20, Left = 1, Right = 1, and Page Order for Print = Across. You will be subject to the default settings until such time as you indicate a choice for any of these options from the display grid. Your selections will be written to and stored in a file, and you may change your entries as often as you like. Output Grid Contents to.xls Text File: Click this item in order to export the current contents that are loaded in the Report Display Grid into a tab delimited file that may be opened by Microsoft Excel. You will be presented with a dialogue box allowing you to designate the output filename and path of your choosing. A filename being the report name with a.xls filename extension output to your data folder will be presented as a default for your approval. In addition, the special formatting included in the Plan vs. Update Variance Report will be maintained if you choose to output this report to an.xls file. Reload Report w/ New Selection Parameters: This command calls a special form that allows you to select lines and/or columns to Apply ( on the fly presentation) or Save as Default as you reload the report into the Report Display Grid. The options selected (bulleted) will also be stored as your preferred defaults for Display Model Line Numbers, Display with Commas, Format for Negative Numbers, Display Zeros as Blanks, and Display File Name on Report. The report display for a Primary Report, Consolidated Primary Report, Consolidated Mix Report, or Plan vs. Update Variance Report presents a frame with check marks for the various sections of the report in accordance with the default setting stored by your Land-PIE system. The initial default is for All report sections, but you may change this either as a new default setting or as a one-time selection. Any selections made on the form will be stored if you click Display Report, but will be reset to your previous defaults if you click Cancel (and the report will return to the grid display mode). How to Use Land-PIE 3-28

55 The form shown appears when you click Reload Grid w/ New Selection Parameters: Custom Column Totaling: Most Land-PIE reports have columns that correspond to timeperiods (monthly, quarterly, or yearly). The standard display presents a grand-total column as the first and last column with the time period columns presented in between. While you may alter which columns and lines print, those are the only columns available in the report. This command allows you to customize column totaling in any way you like with default assumptions presented as your starting point. For example, the default assumptions for a report with monthly time periods is that you do not wish to display any monthly columns, but prefer to display quarterly total columns with yearly totals inserted and a grand total column at the end. You may approve and print a report with these assumptions by clicking the View/Print command button immediately, or you may alter the default specifications followed by clicking this button. The default number of months in the first quarter and the first year (whether or not you select these periods to print) are displayed assuming the Fiscal Year Start Month Number displayed on the form and predicated on the report start date. It is important that these variables are set properly since this determines which monthly columns should be summed to arrive at the subtotals for the respective quarters and years. Note: You may change the Fiscal Year Start Month Number, and your change will be stored as your Land-PIE default for all future column totaling including that produced by the Report Periods item on the Display Grid Menu Bar. How to Use Land-PIE 3-29

56 An example of the specifications form with default assumptions is shown below: Report Family (Menu Bar Command) Whenever a report that is part of the Primary or Consolidation Report Family is loaded into the Report Display Grid, a this menu item appears on the menu bar labeled Report Family. When you click this menu item, you will be presented with the opportunity to select any of the other reports in the Report Family simply by clicking your choice which immediately reloads the Report Display Grid with that report. This allows you to freely toggle among the reports in the family without having to leave the grid. Custom Specs (Menu Bar Command) The Primary and Consolidated Cash Flow Reports consist of several report sections. When these reports are initially loaded in the Report Display Grid, the report sections are loaded in accordance with your stored default report lines specification. This default calls for All report sections unless you have changed your default specification as a feature of the Reload Report w/ New Selection Parameters selection available with the Options menu bar item. You may use this feature to designate various report section combinations without changing your default by clicking the OK/Apply option. However, the Custom Specs menu bar selection allows you to instantly toggle among various report section groupings. When you click a selection, the grid How to Use Land-PIE 3-30

57 is reloaded immediately. The selections presented on the drop down list associated with this menu item are controlled by a Custom Specifications File included in your Land-PIE program folder. If you would like to add additional selections to the list, please call customer support for instructions on how to easily edit this Custom Specifications File. REPORT PERIODS (MENU BAR COMMAND) Click this menu bar item if you wish to re-cast a time period report with the columns sub-totaled to a higher level (quarterly or yearly for a monthly report; or yearly for a quarterly report) along with a grand total column. The drop down list allows you to select an available report period type exclusive of the type that is already loaded in the grid. The grid will immediately re-load with the columns being presented according to your selection. The sub-totaling and column labels are responsive to your setting for Fiscal Year Start Month Number which defaults to January, but may be changed via the Custom Column Totaling option described above. The Display Grid showing the Report Periods menu bar Item is displayed below: How to Use Land-PIE 3-31

58 Font Size (Menu Bar Command) The report display grid automatically loads with a standard font size. This font size is re-set every time you reload the grid. This selection on the menu bar that allows you to increase or decrease the font size as percentage adjustments to the standard size. When you select this item, the drop down list will display the currently loaded percentage with a check mark. The available choices are 120%, 110%, 100%, 95%, 85%, and 75%. Once the grid reloads with the selected font size, it will not only be visible on the display grid, but will carry forward to the Print Preview and/or Print routine. Format Cells (Menu Bar Command) You may provide special formatting for selected grid cells pertaining to font, bold, italic, text color, background color, borders, alignment, etc. After you select the cells to be affected, you may click this menu selection in order to invoke the dialogue box. Although these format settings will be retained for the Print Preview and/or Print routines, they will not be retained when the display grid is reloaded with new contents. Sensitivity Matrix (Menu Bar Command) Land-PIE is most widely used in developing the initial feasibility analysis for a project. The pro forma results contained in a Primary Report and associated Budget Analysis and Executive Summary reports reflect calculations based on one given set of input assumptions regarding the project. Have you ever wondered how sensitive the profitability measures are to the assumed value for a certain key variable? Suppose you wanted to test a range of assumptions for average sales price and the corresponding sales absorption pace. You could repeatedly change the inputs for these variables, calculate the report and then take note of the key evaluation criteria such as Net Profit, Profit Margin, Net Present Value, Internal Rate of Return, and Land Residual Value. To streamline this process, Land-PIE offers a Sensitivity Matrix feature that allows you to perform just such an analysis in a matter of seconds while displaying the results of up to a dozen incremental scenarios as separate columns of a one-page report. This feature allows you to more thoroughly analyze a project and evaluate its risk profile in a shorter period of time. The analysis begins with a Primary Report that is loaded in the display grid. This Primary Report is considered as the Base Case. You initiate the analysis by simply clicking the Sensitivity Matrix selection on the menu bar in the display grid. The Sensitivity Matrix form then appears offering you a selection of different variables that you wish to isolate for your sensitivity analysis. How to Use Land-PIE 3-32

59 The form showing list of Sensitivity Matrix variables for your selection: The concept is that you will select a single variable that you wish to study. However, the first two choices involve varying the weighted average sale price by either a dollar amount (the first selection in the list) or by a percentage amount (the second selection), and since price directly affects the sales absorption pace indicated as an average monthly sales rate, you will have the opportunity to indicate your expectation regarding that relationship for each incremental scenario. (If you forget what your assumed average monthly sales rate is, you may quickly click Calc Matrix with only one scenario and observe the display for the Base Case column. Then return to the Sensitivity Matrix form to make your entries.) After you have selected your desired matrix variable by pressing Tab or Enter, you will enter the number of scenarios (from 1 to 12) that you wish to include in the matrix. The form will then present you with the designated number of text boxes (with appropriate labels and hint messages) for you to enter the incremental amounts for your scenarios How to Use Land-PIE 3-33

60 Sensitivity Matrix form as it might appear just prior to clicking Calc Matrix : Once you have provided the desired scenario specifications, you simply click the Calc Matrix button and, in a matter of seconds, the Sensitivity Matrix Report will appear on the grid. The report presents the appropriate line items for the Base Case report as the first column with each successive scenario as the subsequent columns. When you Close the display grid after you are finished viewing and/or printing this report, you will be returned to the Sensitivity Matrix form with your previous entries being retained. You may make any changes desired for producing another Sensitivity Matrix Report, or you may click Cancel to return to the display grid with the original Primary Report loaded. How to Use Land-PIE 3-34

61 An example of a Sensitivity Matrix report loaded in the display grid (not all lines show): Goal Seek (Menu Bar Command) For convenience, this menu bar selection provides the same functionality presented as a Command Button on the Main Menu with the exception that you are not required to select the Primary Report as the basis since it will be based on the report currently loaded in the display grid. Several Goal Seeking command choices are available. These selections automatically adjust the Land Acquisition value within a Primary Report in order to achieve a specified target result for project Net Present Value, Internal Rate of Return, Profit as a percent of sales, Profit as a dollar amount or a calculated Land Residual Value that is equal to the Land Acquisition Cost. Where appropriate, you will select a command that dictates whether the target value is based on cash flows before loans or after loans. The financial viability of a development project often hinges on the amount paid for the acquisition of the land. These Goal Seeking commands are of great value during the land purchase negotiation process in that they allow you to determine the exact land acquisition cost that would allow the project to achieve a profitability yardstick that meets your acceptance criterion. Of course, all other assumptions regarding product mix, density, sales prices, absorption, and cost disbursements must be validated before invoking the Goal Seeking process. An altered value for Land Acquisition may affect the Property Tax expense and/or Loan Interest expense depending on your input assumptions related to these items, and these relationships will be accommodated automatically as part of the Goal Seeking process. How to Use Land-PIE 3-35

62 Land-PIE will reprocess the report logic on an iterative basis while making appropriate adjustments until the target result is achieved within a small tolerance. The mathematics of interpolation are built into the iterative process to maximize efficiency. The results will be deposited into a report having the letters SEEK appended to the original report filename, and will be immediately presented on the display grid. For example, if the original Primary Report is named lp-ranch.rep, then the adjusted report will be named lp-ranchseek.rep. The Primary Report disbursement values for Land & Acquisition, whether they were input directly or calculated based on lot takedowns, will be adjusted up or down by applying trial percentage increments. Therefore, you must indicate some assumed disbursement for Land & Acquisition in the original Primary Report or else the percentage adjustments will result in zero making it impossible for the Goal Seeking process to achieve a solution. It is important to note that the Goal Seeking process does not change the original input data contained in your Primary data file. Rather, it displays what the altered Land & Acquisition disbursement(s) would have to be in order to achieve the desired results. Also, there is no Budget Analysis Report or Executive Summary Report produced in conjunction with the Goal Seek report. So, if you wish to alter the original input assumption to reflect the adjusted value and to view the corresponding Report Family, you will have to open the Primary input data file, make the appropriate change and re-calculate the report family. Note regarding Internal Rate of Return Goal Seek: The internal rate of return calculation is solved through an iterative process that determines the discount rate which results in a net present value equal to zero. There are certain cash flow streams for which the internal rate of return cannot be solved which, in turn, makes it difficult for the Goal Seeking process to arrive at the proper adjustment to achieve the desired target within a reasonable number of iterations. This may be the case if you are seeking a desired internal rate of return for the leveraged (after loans) net cash flow. If you should receive a message that the Goal Seek operation has failed to converge on a solution after the maximum number of iterations, you might try this alternate approach: Open the original Primary data file, change the Discount Rate to be equal to your desired internal rate of return, recalculate the Primary Report with this discount rate, and then perform a Goal Seek process for Net Present Value (after loans) requesting a target Net Present Value equal to zero. When this target is achieved, you will see that the Internal Rate of Return on the report is equal to the Discount Rate (i.e., your desired IRR). This solution works because the Net Present Value can always be solved, so there are no discontinuities involved in the interpolation process. Graphs (Menu Bar Command): Reports viewed on your monitor or sent to the printer offer the most detailed record of the calculated results of your analysis, but the visual representation that can be provided by graphical output either as line plots or bar charts offers aesthetic appeal and facilitates the observance of trends. As they say, A picture is worth a thousand words. Land-PIE offers graphical output in conjunction with a Primary Report or Consolidated Primary Report. When you click the Graphs menu bar item, a list appears offering several pre-defined graph selections which will appear immediately upon your clicking a selection or typing its corresponding number. The final selection on the list is User-Defined Line Item(s) which presents a form allowing you to define your own graph by selecting up to 3 line items from the report. You reference the line items by their line numbers in the report display (line numbers are displayed if you select the Option Display Model Line Numbers). After you enter a line number, Land-PIE will display the corresponding line title which will be used as the legend for the line item in the graph. You may change this text if you wish. Finally, if you like the graph you have defined, you may click the button on the form labeled Save Graph Specs to Menu List in order to add the graph to the list that appears when you click the Graphs menu bar item. How to Use Land-PIE 3-36

63 While the graph is being displayed on the monitor, you may feel free to explore the various output options by clicking the items displayed at the top of the graph form, such as switching from a Line Plot to a Point Plot to a Bar Chart, or removing the line points and/or legends. For graphs that do not have negative values, you may also select a Stacked Bar Chart. If you wish to print the graph as it is displayed on the monitor, simply click the Print Graph button and indicate the output device where you wish the output to be sent. A sample line plot: Time period range -- The time periods plotted on the horizontal axis of the graph correspond to the time periods (columns) loaded into the display grid when the graph is invoked. The default is All periods ranging from the report start date through the final period of the time horizon regardless of whatever period the activity may close out. You may define the beginning and/or ending time periods of the column range for both the report as displayed in the grid and for the graph in a single step by clicking the Reload Report w/ New Selection Parameters selection from the Options menu bar item in the display grid. You then simply enter the desired column range in the Column Selection text box. In addition to the desired column range, you may call for the total column (designated by an entry of T ) as the first and/or final columns and they will be displayed accordingly in the report grid, but will be ignored for the graph. For example, to limit the column range of a 24 period report to 20 periods, any of the following are fine: 1-20 T, ,T T,1-20,T How to Use Land-PIE 3-37

64 Close (Menu Bar Command): You may click Close or click the X on the upper right of the display grid to return to the same source from which you originally called for the report display (i.e., the specific input screen or the Main Menu). How to Use Land-PIE 3-38

65 Section 4: Detailed Explanation of Input Items (Primary Report) Note: The titles for each of the input items described for the various input screens are spelled out in complete words, whereas the actual titles that appear on the input screens are often abbreviated to fit within the space available. Screens #1 - #15 -- Product Sales Modules Product Identifier: You provide your own identifier for each product sales module that you activate. The identifier will appear on the reports and will become part of the screen header displayed at the top of the screen and in the list box associated with the SelectScreen menu command. No. of Units: This is the total number of Sales Units for the module. The units may be lots, parcels or any other designation of your choosing. The module must forecast the closing of this number of units, otherwise the Not Closed Out line will appear on the Primary Report. Detailed Explanation of Input Items (Primary Report) 4-1

66 No. of Acres: Optional You may enter the total number of acres pertaining to this module. If you enter acreage for one module, you should enter it for all modules activated so that certain allocations may be made on a relative acreage basis. Unit Closings: Enter the period-by-period unit closings. If you enter more closings than there are sales units in the module, the excess closings will be ignored. However, if you don t enter enough closings, the Not Closed Out line will appear in the Primary Report. Price Per Unit or Escalation (%): You must establish a unit price by entering an amount in the first period (or as of the first closing period). Values greater than 100 are dollar amounts while values of 100 or less are percentages. You may change the unit price over time either by entering a new price effective as of the period in which it is entered or by entering a value less than 100 which is assumed to be a percentage change (plus or minus) applied against the most recent price setting. The price changes calculated by the Land-PIE model logic are based on simple interest in that the price change percentage is applied against the most recent dollar amount price setting rather than the most recent calculated price. If there is no entry in a given period, the most recent price setting will be retained. Of course, you may also invoke one of the Trend functions from the menu bar (such as linear or compound increases) to specifically populate the price settings that you want. The dollar amounts per unit active in any period are multiplied by the number of units closed in that period. You may indicate the actual Sales Revenue for any given period by appending.01 to the desired value. For example, an entry of 50, would dictate an overriding value of $50,000 for the period, while an entry of 50,000 would indicate a price of $50,000 per unit closed in the period. Note regarding Seller Financing terms described below: This is optional. You may indicate financing terms if you plan to offer seller financing to the buyers of the units represented in any particular sales module. If entered, the same financing terms will apply to all units in that module. Cash receipts will consist of cash received at closing (down payment) and principal and interest receipts as dictated by your inputs. Notes Receivable and Interest Receivable (if interest is not paid currently) asset accounts will be carried to the balance sheet. Financed (%): Enter the percent of the sales price at closing that will be financed by a Note. The remainder of the sales price will be received as Closing (down payment). If this entry is non-zero, then a Note is assumed for each of the closings in this sales product module. Annual Interest (%): Enter the Annual Interest Rate (%) for the financing. 1=Accrue Interest: Enter a 1 if Interest is to accrue until payoff(s). incurred. Otherwise Interest is paid (received) as 1=Compound Interest: Enter a 1 if accrued interest is to be compounded. Otherwise, Interest accrues on a simple interest basis. Detailed Explanation of Input Items (Primary Report) 4-2

67 Repay Pattern-(% s): Enter periodic repayment percentages for a single Note amount assuming that the first period is the period of the Note funding. Note principal will be repaid in direct accordance with this input while any accrued Interest will be paid in proportion to the Principal amounts. The pattern established for one Note will be overlaid for all of the Notes based on the closings in this module. Screens #16 - #18 -- Miscellaneous Revenue Items #1 - #9 Name Miscellaneous Revenue #1 - #9: These nine Miscellaneous Revenue items allow you to provide your own line title that will print on the report if the item is activated with non-zero data. % Sales or $/Close: Each Miscellaneous Revenue item may be calculated as a function of sales closings either as a percent of Sales Revenue or as a dollar amount per unit closed. If the input value is over 100, it is assumed to be a dollar amount per unit closed; values of 100 or less are assumed to be a percent of sales revenue. 1=Capitalize: Entry of a 1 causes the Revenue item to be posted on the P&L Statement as a contra cost of sales item rather than as income when received. Detailed Explanation of Input Items (Primary Report) 4-3

68 Override Miscellaneous Revenue #1 - #9: A non-zero value in any period for a particular Revenue item overrides the calculated value in the period (use.001 for zero). These lines may be used to provide values directly without relying on any calculation method. Special Calculations for certain Miscellaneous Revenue Items (Optional): Miscellaneous Revenue #3: This Revenue item carries the default line title Utility Reimbursement for new data files. This revenue item has the capability to work in conjunction with the Reimbursable-(%) input flag available for all Development Cost items to perform a special function for calculating refunds of reimbursable costs. Here is how it works: Each Development Cost disbursement flow is factored by its input Reimbursable-% (if any) and all such reimbursable flows are added together and then cumulated across the time periods of the project. This is the cumulative reimbursable flow. Then, if the entry in any period for Miscellaneous Revenue #3 is 100 or less, it is assumed the be a percentage that will be applied against the cumulative reimbursable flow as of that period (with any prior reimbursements removed) in order to calculate the reimbursement for that period. The Hint Message at the bottom of the screen when this item is being addressed will remind you of this optional capability. Of course if you are using this revenue item, you may change the line title as appropriate for your case, and you do not have to use the reimbursement capability at all. Miscellaneous Revenue #6: This item provides an extra input field labeled Periods to Lag which allows you to delay the receipt of the revenue funds (calculated as a percent of sales revenue or a dollar amount per unit closed) by a designated number of periods. When this field is left blank, there is no delay and the funds are received as the closes occur. An entry of 1 would delay the receipts by one period, and so on. Miscellaneous Revenue #9: This item provides an alternative input field for calculating revenue receipts labeled $/Cumulative Units Closed. If a non-zero value is entered, the value will be multiplied by the number of cumulative units closed each period and posted as receipts of funds for this item in those periods. This calculation takes precedence over any calculation based on % Sales or $/Close if there is also an entry in that field. Detailed Explanation of Input Items (Primary Report) 4-4

69 Screen #19 -- Commissions / Closing Cost / To-Be-Named Sales Cost Name Sales Cost: This is a sales cost item that allows you to provide your own line title which will print on the report if the line item is activated with non-zero data by making an entry for Named Sales Cost-% or $. Commissions-% or $: Closing Costs-% or $: Named Sales Cost-% or $: Commissions, Closing Costs, and the Named Sales Cost are calculated as a function of sales closes either as a percent of total sales revenue or as a dollar amount per unit closed. If the input value is over 100, it is assumed to be a dollar amount per close; values of 100 or less are assumed to be a percent of sales revenue. Note: You may indicate a specific overriding amount in a particular period by appending.01 to the amount, for example, to indicate an overriding amount of 5000 for a given period, the entry would be Detailed Explanation of Input Items (Primary Report) 4-5

70 Screen #20 -- Land Acquisition / Override Cost of Sales Inflation (% s): If activated by a percentage entry in one or more periods, a global compound Inflation Index will be calculated and will print just before the Disbursements section of the Primary Report. Each cost category has an input item labeled 1=Inflate which will cause the base dollar disbursement forecast to be factored by the Inflation Index if a 1 is entered for that cost item. Land Acquisition: Enter periodic disbursement(s) for Land Acquisition. This should be at full price since loan financing may be assumed in the loan flow area of Land-PIE. 1 = Not Drawable: Land Acquisition is assumed to be eligible for reimbursement by a loan draw (if a loan is activated) unless this item has an input value of 1. Setting this value to 1 indicates that Land Acquisition will not be covered by a loan, thus leaving a cash shortfall that will be covered by available cash or by an equity contribution. If the Purchase Note is activated, it will make the draw to cover this disbursement. The A & D Loan, if activated, would make the draw if there is no Purchase Note activated. 1 = Inflate: An entry of 1 causes the base dollar disbursements to be factored by the Inflation Index (if activated by input to the Inflation (% s) on Screen #20) Detailed Explanation of Input Items (Primary Report) 4-6

71 Note: The following items have no relation to Land Acquisition, but appear on this screen due to space considerations. 1 = Direct Expense Interest: By default Interest Expense accruals from all loans are added to the capitalized cost balance and are relieved into Cost of Sales at closings on a relative sales value basis. Enter a 1 if you wish Interest Expense accruals to be expensed as incurred (Direct Expense). 1 = Direct Expense Loan Fees: By default Loan Fees from all loans are added to the capitalized cost balance and are relieved into Cost of Sales at closings on a relative sales value basis. Enter a 1 if you wish Loan Fees to be expensed as incurred (Direct Expense). Override Cost of Sales: A non-zero entry in any period overrides the calculated value for that period. Use.001 for zero. Forecast periods that do not contain overrides will be adjusted such that total Cost of Sales including the override values will produce the correct total. Screen #21 -- Real Estate Tax Detailed Explanation of Input Items (Primary Report) 4-7