September 8, 2010
Marketing Real Estate | 10 Features You Might Want In Real Estate Investment Software But …
Real estate investing software is used by real estate professionals and investors who want to quickly and easily arrive at the “bottom line” of an investment property opportunity without having to spend the time and effort it takes to create a spreadsheet.For anyone seriously engaged in real estate investing the logic is straightforward.
Rather than having to worry that they will know enough about spreadsheets to include the required calculations (not to mention being able to format the reports worthy enough to present the data) most are turning to real estate investing software to do the cash flow and rate of return projections for them.
Say, for example, you were a heart surgeon about to perform a triple by-pass, you would focus your attention on the procedure, not on trying to learn how to manufacture a scalpel. In the same way, agents and investors engaged in investment real estate will use the tool provided by the real estate software guys, and allot their time to their primary objective; namely, to to make money buying and selling real estate.
Okay, enough said, I’m sure you get the idea.So now allow me to suggest 10 features you might want consider in the software solution you intend to use for your real estate investment business. The list, of course, is not exhaustive, but it does include a number of features that you might not have even realized are made available to you in some investment software solutions.
1. Canadian loan amortization – This will enable you to create a rental property analysis with the correct computation for mortgage payment in the USA as well as in Canada.
2. Global currency symbols – This would allow you to use currency symbols such as the pound, yen, or euro as well as the dollar symbol in your reports.
3. Revenue projections with the option to “step” the vacancy rate, income, and operating expense – Many real estate investing software solutions include a Proforma income statement for revenue projections, but it helps when you can stagger those rates and amounts throughout your projections rather than using one rate or amount across-the-board.
4. Rent scenarios evaluation – You will find it extremely beneficial to see how changes in rents might affect the cash flow, rates of return, and profitability of a rental income property.
5. Sensitivity analysis option – This enables you to evaluate a wide-range of crucial data based upon a worst case, probable case, and best case scenario for such things as sale price and down payment.
6. Multiple loans option – This allows you to include more than a primary loan in your analysis such as a second loan and a third loan. You should also expect the software to give you an easy option to select whether the loan is a fixed-rate or interest-only.
7. Capital add-ins expenditure option – This would be so you can include a cost for estimated capital expenditures you are planning for the property and have the real estate investment software adjust the cash flow and other data accordingly.
8. Photos option – Being able to show photos of the property in such reports as the coversheet, marketing package, and perhaps a separate photo page is a real plus. You should expect the investment software you select to provide a quick and easy way to do this.
9. Marketing package and/or executive summary – If you’re planning to resell the investment at anytime in the future then you will also want the software to create some professional reports you can present for marketing the property.
10. Other considerations – In addition to the features listed above, here are some other things you should expect in the real estate investment software you elect to purchase. Easy to use, user-friendly forms, calculations for all key returns, professional-quality reports, seamless printing, technical support, help file, and free updates.
It should be noted that these and other options are available in the real estate investing software I developed for rental property analysis. So you might want to begin your search there simply by following the link below. Here’s to your success.
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3 Comments on Marketing Real Estate | 10 Features You Might Want In Real Estate Investment Software But … »
May 9, 2011
Quaker in a Basement @ 3:41 pm:
At the same, the Treasury paid out a total of $1.1187 trillion. When the $65.898 billion in tax refunds is deducted from that, the Treasury paid a net of $1.0528 trillion in federal expenses for March.That $1.0528 trillion in spending for March equaled 8.2 times the $128.179 in net federal tax revenue for the month.
May 28, 2011
CPA says... @ 3:08 pm:
The fatal flaw in Edelman’s article is that its a one-size-fits-all strategy for the masses. There are too many dynamics in this equation (both personal and financial) and that is why people who don’t understand finance and tax matters should consult with an independent, experienced, professional accountant to provide them the right answer for their unique set of circumstances… the key word here is Accountant….not an attorney, not a so-called “financial advisor”….we’ve already seen what those jack-asses have done to our Nation’s budget… an accountant!!! If you’re too cheap to hire an accountant…then you need to do some major homework on inflationary impacts, cash flow analysis, present value, future value, etc. before making that decision because it could wind up costing you a huge amount of money…. The safe choice is Pay Off the mortgage as it is a guaranteed % return…but as mentioned earlier you could – depending on your circumstances – end up losing alot of money taking that course of action…and possibly wind up with some severe cash flow problems. You need to also remember that you never truly own your home…you may have the deed, but if you don’t pay your property taxes for whatever reason…the sherriff will seize your home and it will be sold at auction.
July 10, 2011
rcrawford @ 11:03 am:
SC, thanks for the question. The increase of half a percent is consistent with expected inflation and the urge by government to limit deficit spending at a time when such spending is exceedingly large. The single-year return based on replication value and cash value is greater than 10 percent for UNH, however. This suggests the stock is undervalued without referencing or projecting future revenues.
Personally, I question whether the proposed 0.5 percent increase is little more than an opening gambit in a negotiation process between government and industry. If so, it is unlikely to work, given provider margins. Government attempted this prior to 2000 and the results were not pretty for Medicare or HCFA. Prices rose, seniors were dropped from the rolls, insurance exited Medicare+CHOICE in waves, and AARP became the most powerful lobby in Washington.
Having said all that, this is not a stock for the risk-adverse or the conservative investor. I would consider it a hold, but that is how I view the market broadly at this point. Candidly, I have not written about investing for some time because I don't short and the macro forces undermine a long perspective until the market and economy achieve some measure of stability. We have another wave of housing-related issues likely to arrive toward the 4th quarter of this year, commercial real estate is problematic, retiring boomers will increasingly shift invested savings from equities to bonds, and non-invested savings is rising — which is good for bonds and agnostic for equities.
Many are concerned that we will witness a lost decade in the US. For a value investor, that is fine. Value investing is a conservative approach that benefits most when the market is stable. When the market is booming, values are hard to find. When the market is imploding, nothing is safe and traditional assumptions about margins and cash flows are unreliable. When inflation is rampant, savings are undermined. But when the market is stable, undervalued firms are rare but available for those who understand how to value equities.
Keep in mind that, while discounted cash flow analysis is not the only approach to valuing stocks, it is predicated on predictable free cash flow growth rates. In other words, it seeks to value a stock using techniques similar to those employed in the valuation of bonds (with their predictable payments and values at maturity). Besides, Buffett's admonition to become greedy when others are fearful is fine if that fear is overblown. With recessions, fear becomes excessive and opportunities increase. With depressions, the same holds but you are better advised to value cash.
A short time back, I posted a chart indicating that the market is fairly valued in this range. It is not yet undervalued at mouth-watering levels, in my view. Consequently, I have not bought or sold in some time, and my largest position is cash.