Internal Rate of Return in Terms We Can All Understand
Wednesday, December 12
The Internal Rate of Return is one of the most used and quoted terms in real estate investing. Yet, for most, it is the least understood investment measurement. In this article it is time to clear the air. Let's take a look at what this financial return is about and why it is so important in real...
Sensitivity Analysis a Tool for Real Estate Agents
Wednesday, August 15
Sensitivity Analysis plays an important part in the selling and buying decisions of multifamily or apartment transactions. What is sensitivity analysis? It is an analysis that involves changing one value to see how “sensitive” the results of an investment are affected by that change. What wo...
What to Watch for in Net Operating Income
Thursday, August 09
How is the Net Operating Income or NOI calculated? Why is this income so important in rental property analysis? What to watch for when interpreting the NOI? In this brief article I plan to answer these questions for real estate agents, landlords and investors.Rental property analysis is made up o...
Importance of Operating Expenses & Operating Expense Ratios
Thursday, August 09
Any type of expense is something you pay for. If you paid for it, then is it an operating expense? Just because you paid for something is not necessarily an operating expense.An operating expense is an item that will ensure that the property will continue to produce income. Examples of these expe...
How to Use the Net Income Multiplier
Thursday, August 02
Want a quick and easy estimate of the value of an apartment or multifamily property? A value you can easily solve using pencil and paper? A value that can tell you what other investors are paying for a property in relation to each dollar spent per Net Operating Income or NOI dollars. How about ...
Why Investors and Lenders Need the Break-Even Ratio
Monday, July 30
Why should you be concerned about the break-even ratio of an income producing property? If you know that the cash flow coming in meets or exceeds the cash flow going out, what else should you know? Ratios, percentages and math, are they really necessary? Which answer would you give; yes and no?If...