Home
About
Portfolio
Investment Focus
Tools
Contact
Investment Tools
Distressed Property Investment Calculator
Evaluate potential returns on distressed property investments in the Greater Rockford region
Property Details
Purchase Price ($)
Market Value ($)
Current or expected market value of the property
Down Payment (%)
Senior Debt to Equity Conversion (SDEC) Amount (%)
View mechanism details
SDEC Mechanism:
Senior Debt to Equity Conversion (SDEC) is a strategic financing approach that:
Increases the purchase price by the SDEC percentage
Seller credits this amount back to buyer at closing
Results in increased loan amount while reducing out-of-pocket costs
Example Calculation:
Base Price:
$0
SDEC Amount (
0
%):
$0
Adjusted Price:
$0
Net Effect: Reduced closing costs through seller credit
Closing Costs (%)
Typically 2% of purchase price
Expected Monthly Rent ($)
Operating Expenses (% of Gross Rent)
Maintenance (%)
Standard allocation: 10% of gross rent
Property Management (%)
Standard allocation: 10% of gross rent
Vacancy Reserve (%)
Standard allocation: 5% of gross rent
Utilities (%)
Standard allocation: 5% of gross rent
Financing
Loan Amount ($)
Auto-calculated as (purchase price - down payment)
Interest Rate (%)
View payment calculation
Monthly Payment Breakdown:
Principal & Interest:
$0
Annual Interest Rate:
0%
Loan Term:
30
years
Loan Term (Years)
Fixed Expenses
Annual Property Tax ($)
Annual Insurance ($)
Calculate Real Estate Returns
Financing Comparison
Feature
Traditional Financing
(No SDEC)
SDEC Financing
5-Year Investment Projections
Year
Property Value*
Rent Income**
Traditional Total Cash Flow
SDEC Total Cash Flow
Traditional Total Equity
SDEC Total Equity
Traditional MOIC
SDEC MOIC
* Assumes 3% annual property value appreciation
** Assumes 3% annual rent increase