Blooma utilizes a cap rate pulled from market data based on the asset type and region the property is located in. The cap rate is then utilized in both the Proforma Cash Flow table and the In-Place Cash Flow table. If there is insufficient data for the system to determine a market cap rate, the system will utilize the user-defined default cap rate that was determined at initial implementation.
If users would like to use a different cap rate for a collateral property, they can edit the cap rate for each individual collateral property pledged to the deal within the Property Valuations page. First, the user will select the collateral on the top left drop down of the Valuations page. Then, they can edit the cap rate within the Proforma Cash Flow, and In-Place Cash Flow tabs separately.
To edit the cap rate in the Proforma Cash Flow tab, select the "Edit Cashflow Table" icon on the top right.
Next, scroll to the bottom of the cash flow table to find the Cap Rate cell. Once located, edit the field with the value you would like to utilize and select save at the top of the cash flow table.
Editing the cap rate within the In-Place Cash Flow table follows a similar process to the one described above. First, navigate to the In-Place Income tab and select the "Edit Values" icon:
Next, scroll to the bottom of the cash flow table to find the Cap Rate cell. Once located, edit the field with the value you would like to utilize and select save.
The updated cap rate will automatically be factored into the overall Proforma and In-Place Income Valuations of the component, as the net operating income of the component will be divided by that cap rate percentage.