In today’s vast arena of investment ideas and new modern techniques created by TV ad infomercials, it is easy to over-look the best and simplest advice that has been around for centuries, own income producing property, collect rent and watch it appreciate over many years. Commercial real estate investment sectors can vary like a menu at a restaurant, but one of the safest and easiest investments are the triple net properties that have shined like a star for years. Buy a building with a long term credit tenant that is paying a nice rent, allow them to maintain the building, have them pay the taxes and insurance and pay off your mortgage all at the same time. While all this is happening you get a tax deduction through depreciation and interest at the same time. No gimmicks, no aggravation just a simple formula used by affluent professional investors for years. Then use a 1031 trade granted by the IRS to avoid paying capital gains taxes when the time comes to sell and move up to a larger property with additional income and more depreciation, deferring your tax.

This concept sounds too good to be true, but very factual and done daily by shrewd investors worldwide. Income producing property like Walgreens, Burger Kings, Auto-Zones, Dollar Generals and a host of other tenants that want to pay rent rather than own their buildings are your targets. You don’t own or run their business; you simply own the building and land they rent. Then you go to the mailbox and collect your monthly rent while they do everything else for you. Commercial real estate through income producing property like triple net properties offer this easy solution to survive in this world of insecurity and high risk stocks.

Triple net properties that are part of a large group of investment vehicles through commercial real estate investment strategies are known as the safest and most secure property in the industry. Statistics back this up and have been widely published in The Wall Street Journal and commercial real estate publications. Our website is one of the leading proponents of this form of investing and can help guide you through the maze of different triple net properties that fit your risk reward tolerance level. Returns ranging from 6 to 8.5 percent are the likely results along with the tax advantages that increase your internal rate of return to much higher levels. Commercial real estate and income producing property is a key element in securing your economic future and should be part of everyone’s investment portfolio.

Investment property for sale led by the triple net industry is the lead category for Reits, Pension Funds, Wealthy Private Investors and now overseas investors fleeing from their own poorly performing economies. Whether it is Greece, Italy Spain, Japan, China, India or Pakistan one thing is in common, get your money invested in the USA commercial real estate market with triple net properties where things are safer and no responsibility is needed in maintaining the property or worrying about taxes or insurance payments.

Owning quality locations in major cities in the USA with credit worthy tenants like Walgreens, CVS Drug stores, AutoZone, Staples, Home Depot is a lot better than a investing in a crumbling economy losing value and having possible governmental take over of your assets which is prevalent in a lot of these foreign countries. Investment property for sale in the USA is term that will last for years to come and be backed up by a stronger economy (with its own problems) than most unstable situations worldwide.

When asked citizens worldwide would they would chose to live if you did not stay in their own country (?) the first choice for 90% of all asked, the USA of course! Thus our commercial real estate investments have a far better chance of appreciation and safety than most. Since investors from overseas pour their own investment monies into our investment property for sale, it would seem fairly likely that our values will maintain their high degree of returns in future years. With the present tax code in the real estate investor’s favor and 1031 exchanges along with depreciation and interest write-offs,  a safe avenue for investment remains with investment properties for sale.

Whether it is triple net property, apartments, which are hot today, office buildings, medical or industrial buildings like Fed X, investment properties for sale are the main reason why Westwood Net Lease Advisors has grown into one of the lead players in this growing industry while others have bitten the dust. We have a vast experience of ownership, management, financing, and overall general knowledge to share with our clients in order to allow them to make proper decisions when selecting from these industries. We seek out the right fit for clients that meet their criteria and expectations among hundreds of choices of investment properties for sale.

Our website is filled with informative information about all forms of investment property for sale and how you acquire and judge them. We invite you to read the various articles and study or E-book and investment letter to better understand the world of investment property for sale.

It’s Important for Investors to Understand the Various Types of Starker Exchanges

Exchanging can range anywhere from a simultaneous exchange of two properties to a multi-party, transaction involving construction and/or reverse exchanges.  It’s important for investors to comprehend the different variety so they know what is best for their own particular situation.  Note, the vast majority of exchanges performed are delayed exchanges also know as Starker Exchanges.

The Delayed Starker Exchange

In this type of exchange, the Replacement Property is closed on a later date than the closing of the Relinquished Property. Sometimes, this kind of transaction is called a “Starker Exchange,” after the well-known 9th District Court case in which the court ruled in the taxpayer’s favor for a delayed exchange prior to current IRS rules and regulations. The current IRS code stipulates strict time frames for completion of a delayed exchange which are the 45 days to identify and 180 days to complete the entire exchange.

The Improvement or Construction Starker Exchange

This exchange takes place when an Investor wants to acquire a property and arrange for construction of improvements on the land before it is received as Replacement Property. Improvements are a building on an unimproved lot, but may include other enhancements made to an already-improved property to create adequate value to balance the Exchange.

Federal law does not permit a taxpayer to construct improvements on a property as part of a 1031 Exchange or Starker exchange after the buyer has taken title to the property as Replacement Property in an exchange. The Intermediary must close first, take title, and hold title to the property until the improvements are constructed, and then convey title to the Improved Property to the taxpayer as Replacement Property.

Improvement Exchanges are also done in the context of both Delayed Exchanges and Reverse Exchanges, depending on the circumstances.

The Simultaneous Exchange or Starker Exchange

In this transaction, the closing of the Relinquished Property and the Replacement Property take place on the same day. Prior to the 1979 Starker Exchange decision, most exchanges were limited to the simultaneous format. Since 1991, the only “safe harbor” for a simultaneous exchange is with the use of a Qualified Intermediary.

The Reverse Exchange another variation of Starker Exchange

Revenue Procedure 2000-37 published by the Internal Revenue Service September 15, 2000, provided the first safe harbor for taxpayers to utilize the reverse exchange format.

A Reverse Exchange is needed when the Replacement Property must close before the client’s Relinquished Property closes.  The Exchange Accommodation Title holder can take title to the Replacement Property or the Relinquished Property normally based upon what the replacement property lender will allow.

Why would you use this type of Starker Exchange ?

• The purchase of Replacement Property, must occur prior to the sale of the Relinquished Property.
• To solve any timing problems the purchase must close before the Relinquished Property or the transaction would be void.
• Frequently used in combination with another form of exchange such as a Reverse/Improvement exchange.

Structuring the Reverse Type  Starker Exchange –

• Used when the Replacement Property is purchased for cash or the seller is providing financing or if the lender will allow the QI on title.
• The Qualified Intermediary (QI), as an Accommodation Title holder (AT), buys the Replacement Property with a loan from the exchangor, (Investor), (Phase I).  The AT retains ownership for up to 180 days until a buyer for the Relinquished Property is found.  Once the Relinquished Property is sold, the proceeds from the sale are used to acquire the Replacement Property from the AT and the exchange is complete (Phase II).

Structuring the Reverse Type Exchange

• Used when the Accomodation Title Holder cannot go on title to the Replacement Property.
• The investor loans the Accomodation Title holder funds equal to their equity in the Relinquished Property.  The Accomodation Title Holder then buys the Relinquished Property in a regular Qualified Intermediary exchange.  The QI then acquires the Replacement Property with funds from the sale of the Relinquished Property to the Accomodation Title Holder and immediately transfers title to the exchangor and the exchange is complete.

Reverse/Improvement Exchange

• Combines the features of the Reverse and Improvement Exchanges
• Used when the exchangor must continue to occupy Relinquished Property until a Replacement Property can be constructed.

Multi-Property and Multi-Party Exchanges part of the family of Starker Exchanges

The investor can trade out of one property into several or consolidate from smaller properties into one larger property.  Also, two or more investors owning a property together can trade into separate properties.  Make sure you are guided by an experienced attorney and CPA.

Personal Property Exchanges

Investment personal property is exchangeable for similar-use personal property.  The government has 13 general asset classes.  Property belonging in one general asset class can be exchanged for another in the same general asst class (an aircraft can be exchanged for an aircraft ).

How does the investor know what a real estate income property is really worth?  Is there a way to calculate the maximum you can pay for an investment and still achieve your investment goal? Some tips to determine how to come to a general conclusion to move forward in a more formal manner below.

Among the many tools used by investors to gauge the worth of a real estate income producing property, one of the most popular is a capitalization rate.  While It should be a guide post it certainly is not the end all in decision making While brokers, sellers and lenders alike are fond of quoting deals based on the “cap rate”, the way it is typically used they are simplifying the true use of a well known term. 

The typical way a broker prices a property is to take the Net Operating Income (NOI), divide it by the sales price, there’s the cap rate. Example: Say the property has an NOI of $100,000, and the price is $1,000,000. Then 

$100,000/ $1,000,000 = 10% cap rate.

But what does that number tell you? Does it tell you what your return will be if you use financing? No. Does it take into account the different finance terms available to different investors? No. Then just what does it illustrate?

What the cap rate represents as used above is merely the projected return for one year as if the property were bought with all cash. Not many investors buy real estate income property for all cash, so we have to further analyze, usually by trial and error, to find the cash on cash return on our actual investment using debt. Then we calculate the debt service, subtract it from the Net Operating Income, and then calculate our return. If the debt terms change, or loan to value, or our return requirement, then the whole calculation has to be performed again. .

. 
As a comparison tool it is almost impossible by any means to find out what other properties have sold for on the basis of the cap rate. In order to correctly calculate a cap rate we must know the correct income and expenses for the property, and that the calculations of each were done in the same way as will be illustrated below.   A broker may have the details pertaining to several deals in the marketplace, and with enough information about enough deals the information may rise to the level of a market cap rate. This is what we call comps for the sale and must be searched out in different directions.  So  common sense says just estimating a range of cap rates for property types, which may or may not apply to the real estate income property you are looking at, and certainly does not take into account your own return requirements may not be accurate.

So what is the first thing a smart investor should do if a real estate income property looks promising, and the broker tells you the cap rate is 10% and you better move quickly? How do you know if it is worth pursuing?  You may be looking at the wrong numbers, and spend a lot of time simply guessing. There is a better way. 

What’s it Worth to YOU is the real question?
The real question in valuation is not how much you or other investors, or even an appraiser value a property , nor the value from a cap rate estimated in the market, but rather the value at which YOU can attain YOUR investment goals taking in consideration loan responsibility and cash on cash return expectations. A tool that will give you that answer to this calculation is that the NOI (Net Operating Income) is figured consistently with industry norms. The generally accepted definition of NOI is: 

Gross Income minus Operating Expenses = NOI

Please note that the operating expenses do not include debt service, or the interest component of debt service. 

The true income and expenses must be verified, or all calculations that flow from them will be worthless. Verifying the income is usually easier than the expenses. Rent roll analysis and a contract contingency for tenant estoppel letters at closing can verify the income stream properly.

On the expense side of the equation, normal due diligence includes verifying with third party suppliers as many of the expenses as possible. Careful study must be taken in evaluating the operating expenses to uncover any unusual numbers that may exist under the present ownership. Owners often take a management fee that may or may not be market based; maintenance expenses may or may not include labor charges; items such as “office expense” may or may not be property specific. In short, before accepting the NOI presented, effort must be made to understand what is behind the numbers. You can also correct the numbers to reflect the way you will own and manage the property. Investors will own and operate a property the different manners. It is entirely possible for two investors to look at the same property and come up with two different Noisy, and gain two different values, and both may be right. 

That’s why comparable sales, replacement value and the income approach are part of a three-pronged determination in estimating value. Appraisers are charged with making the valuation representative of the market conditions and the typical requirements of investors and lenders active in the market. The third method, the income approach, is usually given the most weight.  This method addresses the return required on both equity and debt, and leads to what can be called a derived capitalization rate.

Determine Your Cap Rate

After the investor is reasonably certain that the NOI is accurate the best way to get an initial value indication is to use a “derived” capitalization rate. That requires two more pieces of information. You have to know the terms of financing and the return you want on your investment. We can then use these terms for both debt and equity to indicate the value at one precise point in time–the instance of when the operating numbers are calculated–to derive the cap rate that reflects those terms. 

Determining a cap rate works like a weighted average, using the known required terms of debt and equity capital.

The Lender’s Return: the Loan Constant

Start with the finance mechanism first. We need to know the terms of the financing available, and from that we can develop what is known as the loan constant, also called a mortgage constant. 

The loan’s constant, when multiplied by the loan amount, gives the payment needed to fully repay the debt over the specified amortization period. This is not an interest rate, but a derivative of a specific interest rate AND amortization period. When arriving at a cap rate, one must use the constant since it includes amortization and rate, rather than just the rate. Using just the interest rate would indicate an interest only payment and distort the overall capitalization process.

The formula for developing a constant is:

Annual Debt Service/Loan Principal Amount = Loan Constant

The investor can use ANY principal amount for the calculation, then calculate the debt service and complete the formula. The constant will be the same for any loan amount. For example, say your lender says they will generally make an acquisition loan at 2 points over prime, with twenty year amortization, with a maximum loan amount of 75% of the lower of cost or value. 

Say prime is at  4.5%. That means the loan will have a 6.5% interest rate. Using a payment calculator, find the payment for those terms. On a loan for $10,000, the annual debt service required is $894.72. Divide that by $10,000 to find the constant.

894.72/10,000= .08947

Using these numbers, the loan constant for that loan would be .08947 rounded to .089.  The answer will be the same if you use $100,000 or any other number as the principal amount.  The mortgage constant is basically the lender’s cap rate on his side of the investment. Both the mortgage constant and “cash-on-cash” rates for equity are “cap” rates in their basic forms. A cap rate is any rate that capitalizes a single year’s income into value (as opposed to a yield rate).

Your Return: Cash-on-Cash Return 
The next step is to provide for the return on the equity.

Start with the return you want on your money: Say the cash-on-cash return you are seeking is 15%. The “cash-on-cash” rate is also known variously as the equity dividend rate, equity cap rate, and cash-throw-off rate. It represents the “cap” rate to the equity position, and to be consistent call it the equity constant. If an investor puts in $30,000 and requires a 15% pre-tax return, then his annual cash in the pocket after paying the mortgage would have to be $4,500.

In this case, the equity constant is .15.

Weighted Average

Each of these cap rates is then weighted based on the loan-to-value ratio of each of the debt and equity positions to build the “overall cap rate”. The formula looks like this:

(LTV debt ratio x mortgage constant) + (LTV equity ratio x equity constant) = derived cap rate 

To finish the example, using the mortgage terms given above, and the desired 15% cash on cash return, the following would be the “overall cap rate” with a 75% loan-to-value on the debt component:

(.75 x 0.08947) + (.25 x 0.15) = .1046

To convert to a percentage, move the decimal two places, and therefore, under the stated conditions, the required cap rate for the property (income stream) is 10.46%. Using the normalized NOI figure, then the indicated value is calculated with this formula: 

NOI/Cap Rate = Maximum Purchase Price

For the original deal above, the value would be calculated thusly to attain the desired return:

$100,000/10.46% = $957,000
The asking price of $1,000,000 is very close to the indicated value of $957,000. This is a deal that would definitely be worth pursuing.

Not a Perfect Formula Regardless

Many factors can influence the value of real estate income producing property both up and down. Some of the most important include deferred maintenance; security of the income stream (strength of the tenants and length of the leases); comparable sales in the area; general economic and market conditions; and local market conditions. These factors speak to the relative risk and effort involved in the continuance of the income stream. As risk or effort increases, so does the investor’s required return on equity. Increase the required equity return and the cap rate changes, and so does the value. 

You should also now see why it is so critical to verify EXISTING income and expense BEFORE establishing value of the real estate income producing property. DO NOT however, use this as a “Perfect Formula”, and then stop your analysis after the calculation. Thorough due diligence in commercial income properties is still needed.

Chairman and CEO

Financial Advisor

How does the investor know what a real estate income property is really worth? Is there a way to calculate the maximum you can pay for an investment and still achieve your investment goal? Some tips to determine how to come to a general conclusion to move forward in a more formal manner below.
Among the many tools used by investors to gauge the worth of a real estate income producing property, one of the most popular is a capitalization rate. While It should be a guide post it certainly is not the end all in decision making While brokers, sellers and lenders alike are fond of quoting deals based on the “cap rate”, the way it is typically used they are simplifying the true use of a well known term.

The typical way a broker prices a property is to take the Net Operating Income (NOI), divide it by the sales price, there’s the cap rate. Example: Say the property has an NOI of $100,000, and the price is $1,000,000. Then $100,000/ $1,000,000 = 10% cap rate.

But what does that number tell you? Does it tell you what your return will be if you use financing? No. Does it take into account the different finance terms available to different investors? No. Then just what does it illustrate?

What the cap rate represents as used above is merely the projected return for one year as if the property were bought with all cash. Not many investors buy real estate income property for all cash, so we have to further analyze, usually by trial and error, to find the cash on cash return on our actual investment using debt. Then we calculate the debt service, subtract it from the Net Operating Income, and then calculate our return. If the debt terms change, or loan to value, or our return requirement, then the whole calculation has to be performed again

As a comparison tool it is almost impossible by any means to find out what other properties have sold for on the basis of the cap rate. In order to correctly calculate a cap rate we must know the correct income and expenses for the property, and that the calculations of each were done in the same way as will be illustrated below. A broker may have the details pertaining to several deals in the marketplace, and with enough information about enough deals the information may rise to the level of a market cap rate. This is what we call comps for the sale and must be searched out in different directions. So common sense says just estimating a range of cap rates for property types, which may or may not apply to the real estate income property you are looking at, and certainly does not take into account your own return requirements may not be accurate.

So what is the first thing a smart investor should do if a real estate income property looks promising, and the broker tells you the cap rate is 10% and you better move quickly? How do you know if it is worth pursuing? You may be looking at the wrong numbers, and spend a lot of time simply guessing. There is a better way.

What’s it Worth to YOU is the real question?

The real question in valuation is not how much you or other investors, or even an appraiser value a property , nor the value from a cap rate estimated in the market, but rather the value at which YOU can attain YOUR investment goals taking in consideration loan responsibility and cash on cash return expectations. A tool that will give you that answer to this calculation is that the NOI (Net Operating Income) is figured consistently with industry norms. The generally accepted definition of NOI is:

Gross Income minus Operating Expenses = NOI.

Please note that the operating expenses do not include debt service, or the interest component of debt service.

The true income and expenses must be verified, or all calculations that flow from them will be worthless. Verifying the income is usually easier than the expenses. Rent roll analysis and a contract contingency for tenant estoppel letters at closing can verify the income stream properly.

On the expense side of the equation, normal due diligence includes verifying with third party suppliers as many of the expenses as possible. Careful study must be taken in evaluating the operating expenses to uncover any unusual numbers that may exist under the present ownership. Owners often take a management fee that may or may not be market based; maintenance expenses may or may not include labor charges; items such as “office expense” may or may not be property specific. In short, before accepting the NOI presented, effort must be made to understand what is behind the numbers. You can also correct the numbers to reflect the way you will own and manage the property. Investors will own and operate a property the different manners. It is entirely possible for two investors to look at the same property and come up with two different Noisy, and gain two different values, and both may be right.

That’s why comparable sales, replacement value and the income approach are part of a three-pronged determination in estimating value. Appraisers are charged with making the valuation representative of the market conditions and the typical requirements of investors and lenders active in the market. The third method, the income approach, is usually given the most weight. This method addresses the return required on both equity and debt, and leads to what can be called a derived capitalization rate.

Determine Your Cap Rate

After the investor is reasonably certain that the NOI is accurate the best way to get an initial value indication is to use a “derived” capitalization rate. That requires two more pieces of information. You have to know the terms of financing and the return you want on your investment. We can then use these terms for both debt and equity to indicate the value at one precise point in time–the instance of when the operating numbers are calculated–to derive the cap rate that reflects those terms.

Determining a cap rate works like a weighted average, using the known required terms of debt and equity capital.

The Lender’s Return: the Loan Constant

Start with the finance mechanism first. We need to know the terms of the financing available, and from that we can develop what is known as the loan constant, also called a mortgage constant.

The loan’s constant, when multiplied by the loan amount, gives the payment needed to fully repay the debt over the specified amortization period. This is not an interest rate, but a derivative of a specific interest rate AND amortization period. When arriving at a cap rate, one must use the constant since it includes amortization and rate, rather than just the rate. Using just the interest rate would indicate an interest only payment and distort the overall capitalization process.

The formula for developing a constant is:

Annual Debt Service/Loan Principal Amount = Loan Constant

The investor can use ANY principal amount for the calculation, then calculate the debt service and complete the formula. The constant will be the same for any loan amount. For example, say your lender says they will generally make an acquisition loan at 2 points over prime, with twenty year amortization, with a maximum loan amount of 75% of the lower of cost or value.

Say prime is at 4.5%. That means the loan will have a 6.5% interest rate. Using a payment calculator, find the payment for those terms. On a loan for $10,000, the annual debt service required is $894.72. Divide that by $10,000 to find the constant.

894.72/10,000= .08947

Using these numbers, the loan constant for that loan would be .08947 rounded to .089. The answer will be the same if you use $100,000 or any other number as the principal amount. The mortgage constant is basically the lender’s cap rate on his side of the investment. Both the mortgage constant and “cash-on-cash” rates for equity are “cap” rates in their basic forms. A cap rate is any rate that capitalizes a single year’s income into value (as opposed to a yield rate).

Your Return: Cash-on-Cash Return
The next step is to provide for the return on the equity.

Start with the return you want on your money: Say the cash-on-cash return you are seeking is 15%. The “cash-on-cash” rate is also known variously as the equity dividend rate, equity cap rate, and cash-throw-off rate. It represents the “cap” rate to the equity position, and to be consistent call it the equity constant. If an investor puts in $30,000 and requires a 15% pre-tax return, then his annual cash in the pocket after paying the mortgage would have to be $4,500.

In this case, the equity constant is .15.

Weighted Average

Each of these cap rates is then weighted based on the loan-to-value ratio of each of the debt and equity positions to build the “overall cap rate”. The formula looks like this:

(LTV debt ratio x mortgage constant) + (LTV equity ratio x equity constant) = derived cap rate

To finish the example, using the mortgage terms given above, and the desired 15% cash on cash return, the following would be the “overall cap rate” with a 75% loan-to-value on the debt component:

(.75 x 0.08947) + (.25 x 0.15) = .1046

To convert to a percentage, move the decimal two places, and therefore, under the stated conditions, the required cap rate for the property (income stream) is 10.46%. Using the normalized NOI figure, then the indicated value is calculated with this formula:

NOI/Cap Rate = Maximum Purchase Price

For the original deal above, the value would be calculated thusly to attain the desired return:

$100,000/10.46% = $957,000
The asking price of $1,000,000 is very close to the indicated value of $957,000. This is a deal that would definitely be worth pursuing.

Not a Perfect Formula Regardless

Many factors can influence the value of real estate income producing property both up and down. Some of the most important include deferred maintenance; security of the income stream (strength of the tenants and length of the leases); comparable sales in the area; general economic and market conditions; and local market conditions. These factors speak to the relative risk and effort involved in the continuance of the income stream. As risk or effort increases, so does the investor’s required return on equity. Increase the required equity return and the cap rate changes, and so does the value.

You should also now see why it is so critical to verify EXISTING income and expense BEFORE establishing value of the real estate income producing property. DO NOT however, use this as a “Perfect Formula”, and then stop your analysis after the calculation. Thorough due diligence in commercial income properties is still needed.

The classifications are large and diverse in the field of investments in commercial real estate and just some of the opportunities lie in several leading categories.

• Retail, Office, Industrial, Medical Triple Net Properties
• Apartments
• Public Storage
• Land

Value Add Investments in Commercial Real Estate that need Assistance (Repair and New Tenancy)

Risk /Reward tolerance level, staying power, infusion of large amounts of capital determine which group you would like to enter. Of course, higher rewards comes with larger risk and that means being able to supply capital and wait out down trends to restore tenancy to higher levels with higher rents translating to lower cap rates and better value. Investments in commercial real estate also are determined with the credit of tenants and what the lender is willing to grant you in the way of financing for each project you undertake. Banks today want to see much higher down payments or equity per deal and will grant lower interest rates with longer terms for the best of tenants not the average one. A strong national tenant will bring lower rates and more years than a local strong tenant with less credit rating.

Apartments are hot sector in investments in commercial real estate with housing at a low level of occupancy and qualifications much more difficult for the average family to justify buying a house. Thus apartments stay filled at higher rents but of course management is key and aggravation to be expected.

Office buildings are not doing as well for many businesses are consolidating and laying off workers, shrinking the space needed, increasing vacancies nationwide and lowering rent expectations for landlords. Industrial is also slowing down for business is not expanding and therefore business not needing more space for goods to be stored and shipped. But public storage is great, for homeowners are moving out of houses to apartments and need a place to store their personal items which increases the need for public storage and raises their rents.

Investments in commercial real estate will always fluctuate with the times and one sector replaces the other as the winner when the economic situation dictates. The above mentioned sectors will react to the housing market and unemployment numbers in a very direct fashion and will rebound when both these sectors regain a more positive outcome of performance.