Real estate investing terms, formulas, reports and more explained
Formulations
Annual Depreciation Allowance
How to figure the annual depreciation allowance the IRS permits real estate investors to
write off as a tax deduction for their residential and commercial investment real
estate properties...
Break-Even Ratio (BER)
The ratio often used by lenders when trying to decide whether or not
to underwrite an investment property loan...
Capitalization Rate: How to Make the Calculation
See how to quickly and easily calculate capitalization rate...
Cash Flow
A fundamental look at real estate investment property cash flow for those of you
new to real estate investing...
Cash Flow After Tax
The Cash flow after tax is explained along with its formulation...
Cash-on-Cash Return (CoC)
Cash-on-Cash, the popular real estate investing return, is explained
including its meaning, shortcoming, and formulation...
Debt Coverage Ratio (DCR)
Debt coverage ratio (DCR) is explained for those engaged in real estate investing who
might not understand its purpose and formulation...
Depreciation and Recapture Tax
Rental property depreciation allowance and the recapture tax associated with a property sale
are explained...
Gross Rent Multiplier (GRM)
GRM provides investors with a quick and easy way to determine whether or not a property
is priced in line with other similar-type properties..
Internal Rate of Return (IRR)
The time value computation that shows the ratio between future
cash flows and initial cash investment as a percentage...
Internal Rate of Return: How to Make the Calculation
Discover a quick and easy way to calculate internal rate of return...
IRR, MIRR, FMRR
The formulations for internal rate of return, modified internal rate of return, and financial
management rate of return are explained...
Loan-to-Value (LTV) Ratio
A computation related to mortgages that lenders use when financing investment
property as a measurement of their financial risk...
Maximum Purchase Price
A calculation investors can make to determine the maximum price they can pay
for an income property to at least break-even and avoid a negative cash flow...
Net Present Value (NPV)
Net present value is explained along with its formulation and use in real estate investing...
Net Present Value: How to Make the Calculation
See how to calculate net present value in virtually
seconds with Pro RE Calculator as well as learn the npv formula...
Payback Ratio
The benefit of calculating the payback ratio during a real estate analysis is explained with
formula...
Profitability Index
The time value computation that shows the 'proportion' of dollars returned to
dollars invested rather than the amount...
Recapture Tax
A look at the depreciation recapture tax real estate investors might owe the IRS when they sell
their income property...
Sinking Fund Factor
Know the amount you you must start setting aside on a regular basis now to cover a capital
expenditure scheduled in the future...
Analysis
Cap Rate and Gross Rent Multiplier
Learn how to use the cap rate and gross rent multiplier formulations to
compute a reasonable rental income property market value...
Financial Leverage
Financial leverage explained and how it can impact a real estate investor's returns and
profitability...
Scenario Analysis
The scenario analysis is explained so you know how to use it to benefit your next investment real
estate evaluation...
Sensitivity Analysis
Changing one variable at a time over a possible range of outcomes in order to
evaluate the effect of that change...
Reports
The APOD
Discover why the APOD is used by real estate investors to examine the annual property operating
data of potential real estate investment properties...
The Comparative Market Analysis
How to correctly create a comparative market analysis
that you can use to effectively estimate rental property market value...
The Proforma Income Statement
How a proforma income statement is created to project rental property revenues
and expenses that real estate investors use to forecast and evaluate its
financial performance over time...
General
5 Ways To Curb Rental Property Maintenance and Repair Costs
What real estate investors can do to keep rental property maintenance and repair
costs from taking too big a bite into their investment profit...
7 Ways Software Can Help Anyone Service Income Property
Seven proven ways brokers and investors benefit by using multifamily software developed for
rental income property analysis...
How the USA and Canada Calculate Mortgage Payment
How the compound interest convention used in the USA differs from Canada and in
turn affects their monthly principal and interest mortgage payment result...
How to Effectively Market Your Rental Income Properties
A few simple ways to get your rental property marketing presentations more
noticed by colleagues and real estate investors....
How to Raise Tenant Rents and Minimize the Fallout
Practical suggestions landlords can utilize that will
help them raise tenant rents and not cause them to move...
How to Shop the Web for Real Estate Software
Some practical ways realtors and investors can evaluate the quality and benefit of
real estate software solutions they plan to purchase from a website...
Only Women Are Beautiful, What Are the Numbers?
How a successful real estate investor changed changed my perception about real
estate investment property and real estate analysis forever...
Overcoming the Fear of Real Estate Investing
A remedy for potential investors struggling with the common fears that keep them
from real estate investing...
Property Management Tips for Real Estate Investors
Eight property management basics every real estate investor should be aware of when
managing his or her own rental income property...
Rental Property Inspections That Should Follow a Sale
The inspections you must address as a real estate agent or investor the next time you
sell rental property...
Rental Property Aquisition "Subject to" Clauses You Should Consider
Four contingency clauses common to rental income property acquisition that have
proven to protect real estate investors...
Should Real Estate Investors Consider a Replacement Reserve?
The benefit of considering a Replacement Reserve allotment for your real estate
analysis and real estate investment decision...
The Financial Benefits of Real Estate Investing
Four proven ways real estate investors can make money by investing in rental income property...
Top 21 Real Estate Investing Terms and Formulas
The exhaustive list of real estate investing terms and formulas every one engaged
with investment property wants to know...
What Real Estate Investors Should Know Before the Investment
Tips for real estate investors to consider that should help them make more prudent
real estate investment buying and selling decisions...
When You Turn Property Management Duties Over to a Professional
What to look for in a property management company once you decide to turn your
rental property over to a professional...
Which Are Operating Expenses, Which Are Not?
Rental property operating expenses are explained so novice realtors and investors
know which costs to include and which to omit...
Why Multifamily Properties Are a Good Real Estate Investment
Things about multifamily properties you might want to know before making your
next real estate investment...
Why Real Estate Investors Should Consider Highest and Best Use
The highest and best use for real estate property can result in a hidden profit when
you're aware of what to look for...
Why You Should Sell Income Property
Helpful suggestions for real estate agents and brokers planning to make rental income
property a part of their sales business...
Software-specific
Pro RE Calculator Has Become Responsive to Mobile Devices
See how the modified "responsive" layout applied to Pro RE Calculator enhances an optimal
viewing experience on all your mobile devices...
The Inside Story Behind ProAPOD® Real Estate Investment Software
Discover the inside story behind ProAPOD real estate investment software, how and
why it was developed, and what it has become...