Property Analysis Calculation Help
I downloaded a property analysis worksheet from a website. Can someone tell me what these terms mean exactly? Which ones are important to me? How are these calculated when analyising a property.
Debt Coverage Ratio
Capitalization Rate
Annual Cash Flow
"Computed Internal
Rate of Return"
Like always, any help would be appreciated. Thanks in advance.
[ Edited by JRendell on Date 03/19/2005 ]
Wow. Outstanding.
NewKidinTown2,
Very informative. Thank you very much. I just went to Borders and picked up the book, "What every Real Estate investor needs to know about cash flow by Frank Gallinelli". Seems like a pretty good book on explaining calculations. Thanks for the reply.
JRendell--
Where did you get it, or could you you email me a copy?
Thanks.
robh2,
I purchased the book from Borders. I had to go on the internet and hunt for it by calling different stores. It was only $20 and from reading it besides another book I am reading, seems very informative. I would recommend it. I wish I would have read this book months ago.
what do you mean by 2k houses?
At a RE meeting I attended a couple of weeks ago, a broker stated that there were currently 0.4 houses per agent in the ABQ area. He was stating there were just over 1500 homes on the MLS. A realtor friend of mine was saying it was closer to 2000 homes listed.
ic
thanks for clarifying..........
interesting,
i had one of those guys call me to but he asked me how i liked the course and i told him i havent even looked at it and he asked me why i would buy something and not look at it. i told him it was non of his business and hung up
In my investigation evidently they have inexperienced telemarketers call people trying to get them to buy this program. The program deals with internet auctions - read one guy payed 6k for the program and he stated that the auction price for a property may start at 2k but the auction is so crowded that the sale price invariably gets sold at full price.
Another informercial to stay away from is WIZETRADE - 3k for the software for information you can access for free!
Wow it is funny that you posted this because i ordered the program awhile ago also because of the cheap price and talk about getting what you paid for. The John Beck program is a scam. I made phone calls and visited websites in the books and came up with nothing unhelpful govt. workers. Any way i just joined today and i am a very ambitious newbie from the Toms River area in Ocean County and you are one of the few members i have seen from Jersey. Maybe you could write me back and we could see if we can help each other at all. Hope to hear from you soon.
Moved
You can absolutely start with 30k, some start with none and have to build it. Start building your team now, find a good mortgage broker, realtor(s) and join your local real estate investment club.
[addsig]
Wow! What a story.
Although I normally depsise them and think they are more dishonest than Mayor Quimby, a business broker may be the way to go. They will sell the business and take part of the profit. Get a good book on using business brokers though.
Forgive me for asking but are you being serious ? I have never heard of a business broker, nor have I ever seen any books on business brokers. This is obviously very close and dear to me as it was a personal project, and what I would like help in doing is finding investors or current mortgage company owners looking to expand DOES ANYONE HAVE ANY SUGGESTIONS AS FAR AS FINDING A POSSIBLE SUITER (INVESTOR/CURRENT OWNER) ?
Quote:
On 2005-05-07 07:53, joecrane wrote:
Wow! What a story.
Although I normally depsise them and think they are more dishonest than Mayor Quimby, a business broker may be the way to go. They will sell the business and take part of the profit. Get a good book on using business brokers though.
[quote]
On 2005-05-07 12:14, handoverfist wrote:
Forgive me for asking but are you being serious ? I have never heard of a business broker, nor have I ever seen any books on business brokers. This is obviously very close and dear to me as it was a personal project, and what I would like help in doing is finding investors or current mortgage company owners looking to expand DOES ANYONE HAVE ANY SUGGESTIONS AS FAR AS FINDING A POSSIBLE SUITER (INVESTOR/CURRENT OWNER) ?
[quote]
I am very serious. Business brokers sell businesses not just REI. They market it for you and actively sell it fo you and take a piece of the action.
I was serious also about being careful with the guys. I only recommend it since you want to get rid of it quick.
I just did a Google search for "business broker" and found lots of options. As far as being safe, there are books out there to help you do that.
I wrote business plans for companies that needed financing. I just know that more people paid more money than they should have (both on the buying and selling end) a lot of the time.
Joe, do you still or would you consider writing business plans ? If so how should I go about contacting you?