The real estate investment program is one of the best tools that investors and real estate professionals can use to analyze and evaluate multifamily real estate.
Here is why.
A good real estate investment program provides forms, creates accounts and creates the necessary reports for real estate analysis. Any user (experienced or not) can create rental reports of professional quality properties for a variety of reasons, such as decision making or as property offers to buyers, sellers, colleagues, partners or lenders. All in minutes
In addition, real estate investment is about numbers. Therefore, real estate investors looking for real estate investment opportunities look for their investment decisions and base them on the final result. Therefore, real estate investment programs become an essential tool for real estate analysis, as they provide a quick, concise cash flow, rate of return and property valuation numbers.
Although most real estate analysts prefer to buy real estate investment programs, it should be taken into account that they have other options.
You can, for example, scan numbers with a plate and a pencil, or perhaps make an accelerated calculation of the rule of the thumb from the top of the head. But it should be clear that these methods, while they may be beneficial in limited cases, do not provide the best solution. It clearly does not provide an in-depth analysis of the property required to make a smart investment decision, and does not include data that potentially affect the opinion of any person, entity or other institution, such as a partner or lender.
You can also use Excel and develop your own spreadsheet. The problem here is time. It takes countless hours to correctly include calculations and format forms and reports, even if you are familiar with Excel. If you are not familiar with Excel, triple the time.
Before following these options, keep in mind that successful real estate professionals are not wasting time or effort to reinvent the wheel. They prefer to invest in real estate programs so they can spend their time generating business to earn money.
But I am going astray. So let’s get back to the topic and take a look at what to expect in good real estate investment programs.
1. Easy to learn and use: you simply want to enter values and have the program do the rest. You never want to look and ask: “What do I do next?” To verify, verify the site. Remember that the same company that builds your software publishes the website. If the website is not well organized and useful, or lacks brightness and confusion, then the software may not be what you want.
2. Unlimited units: you want the ability to analyze a unit, a thousand units or even more units if necessary.
3. Loan amortization: you want adequate control over the financing assumptions. For example, you want the ability to enter multiple loans and the flexibility to enter the loan as a hypothetical loan or as a new loan, and then calculated at a fixed or interest rate only.
4. Critical performance rates: you want the real estate investment program to calculate the cash flow returns and loan rates, such as the maximum rate, the gross rental multiplier, the cash in cash, the operating expenses index, the Net operating income, debt coverage index, value loans index, parity index and Profitability index
5. Tax shelter accounts: you want the ability to determine the cash flow after taxes in addition to your tax provisions or losses. To do this, the real estate investment program must include accounts for tax adjustment items, such as cost recovery and mortgage interest.
6. Temporary value of money: you want the program to create accounts that include the temporary value of money, such as the internal rate of return and the net present value. Why As you will discover that in real estate investment, the timing of cash receipts can be as important as the amount.
7. High quality concise reports: you want printable, readable and attractive reports. Remember that you can try to influence the opinion of the buyer, seller, colleague or lender regarding this property, and you may have to make your decisions based on the reports, even before viewing the property.
8. Updatable versions: you want the possibility of “updating” a platinum version lower than a platinum edition without having to buy the platinum edition again at the full retail price.
9. Technical support: you want to have open access to technical support in case of a question or problem. Preferably, email and telephone support. Be careful if the company or developer seems to be too aware: there is nothing more frustrating than having a problem and then not being able to talk to the developer about it.
10. Affordability: You should be able to find a good real estate investment program on the web for around $ 300. It is very affordable given the fact that you can start working with the income-generating property immediately.
11. Customer satisfaction: you must examine the names, professions and titles of clients who have presented a certificate. If you can call, you can have a winner.
There are other things that you want the real estate investment program to offer, such as uninterrupted printing, image and brand functionality, contestant name integration, email capability, help file, Windows compatibility, etc. . The point is not to be rushed. You can spend time on each website looking to make sure you get the basics and maybe a little more at the best possible price.