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 ]

Comments(17)

  • RonInAZ19th March, 2005

    Wow. Outstanding.

  • JRendell19th March, 2005

    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.

  • robh221st March, 2005

    JRendell--

    Where did you get it, or could you you email me a copy?

    Thanks.

  • JRendell21st March, 2005

    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.

  • mark102810th May, 2005

    what do you mean by 2k houses?

  • icarus3310th May, 2005

    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

  • mark102810th May, 2005

    thanks for clarifying..........

  • ryand13th April, 2005

    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

  • BABYBULL2413th April, 2005

    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!

  • Conrad8511th May, 2005

    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.

  • joel10th May, 2005

    Moved

  • ray_higdon11th May, 2005

    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]

  • joecrane7th May, 2005

    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.

  • handoverfist7th May, 2005

    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.

  • joecrane8th May, 2005

    [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.

  • joecrane10th May, 2005

    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.

  • handoverfist11th May, 2005

    Joe, do you still or would you consider writing business plans ? If so how should I go about contacting you?

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