What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition
- 4h 48m
- Frank Gallinelli
- McGraw-Hill
- 2016
The Classic Guide to Real Estate Investing―Updated for a Re-energized Industry!
Real estate is once again a great investment, and this bestselling guide provides everything you need to know to get in now and make your fortune.
What Every Real Estate Investor Needs to Know About Cash Flow removes the guesswork from investing in real estate by teaching you how to crunch numbers like a pro, so you can confidently judge a property’s value and ensure it provides long-term returns.
Real estate expert, Frank Gallinelli has added new, detailed investment case studies, while maintaining the essentials that have made his book a staple among serious investors. Learn how to measure critical aspects of real estate investments, including:
- Discounted Cash Flow
- Net Present Value
- Capitalization Rate
- Cash-on-Cash Return
- Net Operating Income
- Internal Rate of Return
- Profitability Index
- Return on Equity
Whether you’re just beginning in real estate investing or you’re a seasoned professional, What Every Real Estate Investor Needs to Know About Cash Flow has what you need to make sure you take the smartest approach for your next investment using proven calculations.
About the Author
Frank Gallinelli is the founder and President of RealData‚ Inc., one of the real estate industry’s leading investment software firms. He teaches real estate investment analysis in Columbia University’s Master of Science in Real Estate Development program.
In this Book
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Do Your Homework: How to Gather the Data Needed to Make an Investment Decision
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Financial Detective Work Before You Buy: Finding the Truth Behind What the Seller Is Telling You
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How the "Time Value of Money" Should Influence Your Real Estate Investing Decisions
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How to Estimate What an Income Property Is Really Worth
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Measuring the Return on a Real Estate Investment
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Case Studies: Apartment, Mixed-Use, and Triple-Net Lease
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Calculation 1: Simple Interest
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Calculation 2: Compound Interest
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Calculation 3: Rule of 72s
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Calculation 4: Present Value of a Future Cash Flow
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Calculation 5: Gross Rent Multiplier
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Calculation 6: Gross Scheduled Income (Potential Gross Income)
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Calculation 7: Vacancy and Credit Loss
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Calculation 8: Gross Operating Income (Effective Gross Income)
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Calculation 9: Net Operating Income
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Calculation 10: Capitalization Rate
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Calculation 11: Net Income Multiplier
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Calculation 12: Taxable Income
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Calculation 13: Cash Flow
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Calculation 14: Cash-on-Cash Return
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Calculation 15: Sale Proceeds
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Calculation 16: Discounted Cash Flow
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Calculation 17: Net Present Value
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Calculation 18: Profitability Index
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Calculation 19: Internal Rate of Return
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Calculation 20: Price, Income, and Expenses per Unit
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Calculation 21: Price, Income, and Expenses per Square Foot
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Calculation 22: Operating Expense Ratio
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Calculation 23: Debt Coverage Ratio
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Calculation 24: Break-Even Ratio
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Calculation 25: Return on Equity
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Calculation 26: Loan-to-Value Ratio
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Calculation 27: Points
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Calculation 28: Mortgage Payment/Mortgage Constant
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Calculation 29: Principal Balance/Balloon Payment
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Calculation 30: Principal and Interest per Period
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Calculation 31: Maximum Loan Amount
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Calculation 32: Assessed Value, Property Taxes, and Value Indicated by Assessment
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Calculation 33: Adjusted Basis
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Calculation 34: Depreciation
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Calculation 35: Gain on Sale
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Calculation 36: Land Measurements
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Calculation 37: Building Measurements—Gross Building Area, Usable Square Footage, Rentable Square Footage, Loss Ratio, Net Rentable Area
