property analysis

Real Estate Investing

All Good Pitchers Throw Strikes — All High Cap Rates?

by Jeff Brown | March 8, 2011

The #1 rule governing baseball pitchers is — throw strikes. If they can’t do that consistently, they can have Nolan Ryan’s fastball, Sandy Koufax’s curveball, and a change-up that’d make Trevor Hoffman cry, and they’ll never make it in The Bigs. This truism was hammered home to me as a college umpire. There are a [...]

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Commentary

Analyzing Pro Forma Data Years Out

by Bryan Hancock | September 19, 2010
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Business school prepares you well to do complicated analysis of projects with cash flow patterns that are irregular.  Fancy tools like the internal rate of return (IRR) are often used to decide where to optimally park real estate investment funds.  Investors have different time horizons, risk profiles, required returns, etc. and will thus analyze projects [...]

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Real Estate Investing

Analyzing a Real Life “Rent & Flip” Deal

by J Scott | September 15, 2010

I picked up a new house last week…I call it “The Haggle House” due to the extensive negotiation it took to convince the bank to sell me this REO… In this post, I want to walk through the analysis I did to determine whether this property would be a good candidate as a mid-term rental [...]

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Real Estate Investing

Introduction to Internal Rate of Return (IRR)

by J Scott | September 2, 2010

Today’s Quiz: What is my return on the following investment: I bought my first investment property back in August 2008. I paid $63,500 for the house using my own cash. I spent the next two months rehabbing it with $34,000 of my own cash. It sat for about 5 months before I lease-optioned it for [...]

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Real Estate Tips

The Cost – Price – Value Trifecta

by Tom Koziol | April 10, 2009

Image by Getty Images via Daylife I must be in a cost/price/value mindset since my last post dealt with replacement cost should a disaster befall one or more of your properties. Today I will attempt to make the point that cost and/or price doesn’t always equal value. Most of us understand this truism but every [...]

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Learn Real Estate

How High Is Up? A Look at Real Numbers Defined by the Real Estate Collapse

by Tom Koziol | January 30, 2009

How High Is Up? The answer can be as simple as one flight of stairs. It also can be as grotesque as 300%. Since I’m talking about real estate, I’ll skip the flight of stairs type of answer and concentrate on the 300% side. Unless you’ve been living in a cave in Zimbabwe, you know [...]

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Real Estate

Which Property to Buy?

by Anwell Tsai | January 15, 2009
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Let’s assume you’ve been presented with two outstanding investment properties to purchase.  Both can be purchased at a great discount and share similar risk profiles, though property A is significantly more expensive than property B. You’ve spent hours analyzing this to no avail. You have done extensive research in the market area.  You know what [...]

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Real Estate

Why You Must Adjust for Conditions of Sale in a Comparative Market Analysis (CMA)

by Anwell Tsai | October 29, 2008

In a Comparative Market Analysis, adjustments to comparable property oftentimes are made to reflect the motivations of a delineated market area’s typical buyer and seller.  Adjustments for conditions of sale reflect the motivations of buyers and sellers when they are not typically motivated and purchases do not reflect arm’s-length transactions. ADJUST FOR SALES BETWEEN RELATIVES/FRIENDS [...]

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Learn Real Estate

Five Additional Steps of Due Diligence When Buying a Rental Property

by Troy Schuricht | April 18, 2008

Due diligence is a term used for a number of concepts involving either the performance of an investigation of a business or person, or the performance of an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of [...]

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Commercial Real Estate

Determining the Value of an Apartment Building Investment Using Cap Rates

by Ted Karsch | March 3, 2008

Determining the value of an apartment building investment is one of the greatest difficulties that many new commercial real estate investors face. Most people who invest in apartments have some experience investing in other types of real estate, typically residential homes or duplexes and triplexes. The issue that new investors face is the fact that [...]

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Real Estate Investing

You Can’t “Trick the Deal”

by Richard Warren | November 27, 2007

I was having a conversation with someone that had absolutely nothing to do with investing. The conversation was about a different business but he was talking about how difficult it was to work with people who were always trying to cut corners. People often think that they know better than the experts do, or that [...]

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