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REAL ESTATE OPERATING STATEMENT FORM PROCEDURES When you view the Microsoft Excel workbook for the Limited Liability Companies (LLC) Operating Statement reporting you will see nine sheets:1) Statement
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How to fill out real estate operating statement

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How to fill out real estate operating statement:

01
Gather all relevant financial information related to the real estate property, including income and expenses for the specified period.
02
Begin by providing an overview of the property, including its address, type of property (residential, commercial, etc.), and any unique features.
03
Next, list all sources of income, such as rent, lease payments, or any other revenue generated by the property. Make sure to include specific amounts and the frequency of payment for each source of income.
04
Deduct any vacancies or vacancies allowance from the total potential income to calculate the effective gross income.
05
Proceed to list all expenses associated with the property, including property taxes, insurance, maintenance and repairs, utilities, property management fees, and any other relevant costs. Specify the amounts for each expense category and the frequency of payment.
06
Subtract the total expenses from the effective gross income to determine the net operating income (NOI).
07
Calculate the capitalization rate (cap rate) by dividing the NOI by the current market value of the property.
08
Finally, summarize the real estate operating statement, including the total income, total expenses, NOI, and cap rate. Also, consider including any notes or explanations for significant changes in income or expenses.

Who needs a real estate operating statement?

01
Property owners: Real estate operating statements provide a comprehensive overview of the financial performance of a property, helping owners track income, expenses, and overall profitability.
02
Investors: Potential investors in real estate properties often request and analyze operating statements to evaluate the potential return on investment and make informed decisions.
03
Lenders: Lending institutions require real estate operating statements to assess the financial feasibility of a property and determine loan eligibility and terms.
04
Real estate professionals: Brokers, real estate agents, and property managers use operating statements to provide clients with accurate financial data, advice, and support for real estate transactions and management decisions.
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The real estate operating statement is a financial document that summarizes the income, expenses, and overall performance of a real estate property.
Property owners and real estate investors are typically required to file a real estate operating statement.
To fill out a real estate operating statement, one must collect all income and expense information related to the property and compile it into the designated form.
The purpose of a real estate operating statement is to provide an overview of the financial health and performance of a real estate property.
Income, expenses, occupancy rates, maintenance costs, and any other financial information relevant to the property must be reported on a real estate operating statement.
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