ProAPOD Real Estate Investment Software Update

Dear Customer,

ProAPOD Real Estate Investment Software has made some major changes to its software and website. This is an Update notice, but it also intends to bring you up to date on some other matters as well.

If you purchased ProAPOD Real Estate Software prior to 1/24/08 there is an update. If you purchased on or after 1/24/08 you may disregard this notice (you have the most current version). Moreover, please disregard this notice if you just own our Mortgage Calculator Software (there are no updates for the Mortgage Calculator).

For our longer term customers, please note that our platinum-grade solution (with tax elements) has become ProAPOD 10.0. If you are using this version (previously named 7.0) you might want to preview the new version on the website at www.proapod.com.

We also just implemented a new database system Thursday so you will notice some changes to your Account Page after logging in. To login open the website and click Customer Login in the left menu under Login and then login as before, using your email and password. Since this is a brand new system, we would appreciate feedback if you encounter problems.

After logging in, you should see one of three results. (1) The Update software downloads, (2) No software updates, because you already have the most current version, or (3) No software updates, because your membership has expired (you can renew your membership and get the updates for your real estate software if you choose).

Please login and check your account. Just remember, that this is a new system for us. Our web guy is certain there should be no problems, but just in case, let us know if there are. While you’re at it (just in case you haven’t visited our site for a while), you might want check it out. Thank you.

To Your Success,

James R Kobzeff

How to Use ProAPOD’s Loan-to-Value Sensitivity

Sensitivity analysis is a popular tool used by real estate analysts seeking to determine the best possible profitability scenario for investment properties because it involves changing one variable at a time over a possible range of outcomes to evaluate the effect of that change.

Sensitivity analysis thus allows the real estate analyst to review each variable’s impact upon the investment property’s present value and given template-based spreadsheet programs like ProAPOD® real estate investing software, a range of variables can be calculated and recalculated quickly, easily, and correctly.

ProAPOD® decided to include a “loan-to-value” sensitivity analysis in its software solutions because it provides a good way for users to evaluate monthly loan payment over a range of mortgage amounts at various interest rates. Moreover, the data appears in a table that is printable, so it makes a great investor presentation.

Creating a “loan-to-value” analysis is easy in ProAPOD®. Open the LoanInfo form and scroll down to the heading, “Loan to Interest.” In the appropriate field labeled “Loan Amount steps”, enter the dollar amount you want to “step” the loan. Then tab down to the field labeled “Interest Rate steps” and select (from the built-in menu) the amount you want to step the interest rate.

In case you’re wondering what a “step” implies, remember, you are asking our real estate investing software to create a “range” of values for a variable (in this case, loan amount and interest rate). The step you enter merely tells ProAPOD® the incremental value for that range. For example, if the investment property you want to purchase requires a loan amount of $350,000 and you step it $3,000, the range (created in the table) would include amounts for $343,000—347,000—350,000—353,000—356,000 and so on. Notice that each loan decreases and increases in incremental amounts of $3,000.

The step for interest rate does the same thing. Back to our example, if loan was based upon an interest rate of 7.0% and you step it 0.250, the table would create a range of interest rates like 6.750—7.000—7.250%. Notice that each rate decreases and increases in incremental amounts of 0.250%.

What benefit is the Loan to Interest analysis? You can quickly determine the monthly payment on a range of loan amounts at various interest rates. A cool feature, considering you get it in all our real estate investing software solutions.

Why not open ProAPOD® and give it a try. You can preview and print the report by looking for Loan-to-Interest Table.

How to Use ProAPOD’s “Down Payment Sensitivity”

Sensitivity analysis has been adopted by many real estate analysts due to programs like ProAPOD real estate software that make investment analysis easy.

What is sensitivity analysis? It involves changing one variable at a time over a possible range of outcomes so the real estate analyst can evaluate the effect of that change and the impact upon the investment property’s present value, rates of return, and profitability.

ProAPOD® provides three sensitivity analysis options: Price Sensitivity, Down Payment Sensitivity, and Loan-to-Value. Each essentially is a calculation and recalculation of a range of variables based upon a specific variable entered by the user in the appropriate form included in our real estate software.

Though a sensitivity analysis in ProAPOD requires just one entry, enough data about the investment property must first be entered for our real estate software to compute a “starting point” variable and rates of return based upon that variable. Price, income, operating expenses, and loan information, for instance, must all be entered beforehand.

Down Payment Sensitivity

To conduct a sensitivity analysis for “down payment”, open the LoanInfo form and scroll down to the heading, “Sensitivity Analysis.” In the appropriate field labeled “Down payment steps” enter the dollar amount you want to “step” the down payment.

What is a step? Bear in mind that you are asking our real estate software to create a “range” of values for the initial variable (in this case, down payment). The step (or value) you enter in the form merely tells our software how to create that range. That is, in what increments.

For example, suppose the investment property (based upon your analysis thus far) requires a down payment of $150,000 (the variable, or starting point for the sensitivity analysis). If you enter $1,000, for instance, our real estate software will step up and step down from that variable, creating a series of down payment amounts ranging from $127,000 to $173,000–each in increments of $1,000–with the appropriate rates of return for each amount.

This is particularly helpful when a real estate investor has funds available to make more of a down payment and would like to compare returns in order to opt for the best return.

The Down Payment Sensitivity report (actually a table) calculates a range of down payment amounts (forty-seven in all) and, in this case, a range of outcomes that include percent (or percent down), cash requirement, annual mortgage payment, debt coverage ratio (DCR), cash flow before tax, and cash on cash return.

Just for the record, ProAPOD real estate investment software implemented this great report at the suggestion of a customer who wanted it for real estate investor presentations. Yes, we do listen.

Take Advantage of ProAPOD’s Sensitivity Analysis

Sensitivity analysis involves changing one variable at a time over a possible range of outcomes to evaluate the effect of that change, allowing the real estate analyst to review each variable’s impact upon the investment property’s present value and rates of return.

ProAPOD® includes three sensitivity analysis options: Price Sensitivity, Down Payment Sensitivity, and Loan-to-Value. In each case, our real estate investing software calculates and recalculates a range of variables quickly based upon the specific variable desired by the user and in turn creates the report displaying that range along with the appropriate measure and return for that variable.

The user, for instance, might want to see what the impact upon cap rate is based on a range of property prices, or upon cash on cash return based on a range of down payments, or upon monthly mortgage payment based on a range of loan amounts and interest rates.

ProAPOD® real estate investment software makes it very easy.

First, enter enough data about the investment property for our software to compute a “starting point” in the sensitivity analysis. Property price, income and expenses, and loan information, for instance, must all be entered beforehand; once an APOD is created (for example) our software will have enough information to make the dozens of computations required for you to do a comprehensive sensitivity analysis.

Secondly, merely make an entry in the proper form for the variable you would like to change. You will find this form in Loan Info under the heading “Sensitivity Analysis” where, in each case, you are asked to submit an amount you would like to “step” the variable. Bear in mind, our real estate software creates a “range” of values both higher and lower then the starting point, and the “step” merely instructs our software the increment you want to use.

You are now ready to preview the report or print it for your presentation. It’s that easy.

If you are currently using ProAPOD® Real Estate Investment Software you are encouraged to take advantage of our sensitivity analysis feature. The reports created are extremely easy to read and provide a wealth of helpful data rental property sellers and buyers can use to make investment decisions quickly.

Happy New Year from ProAPOD!

Happy New Year from ProAPOD® Real Estate Investment Software. I trust you have spent some time this last week to plan for the next year and truly hope that 2008 will be a year of positive change, personal development and increased productivity for you and your family. May your expectations for 2008 find a complete and successful fulfillment.

2007 was a challenging yet memorable year.

Thank you for choosing my real estate investment software, real estate investor software, and mortgage calculator software for your business and personal use.

Thank you for the kind words about my real estate software, sharing with me how it has benefited your business, and for turning on a friend or colleague.

Moreover, having spoken with many of you this past year, I am convinced that ProAPOD® Real Estate Investment Software has the most professional, intuitive, and committed real estate professionals and real estate investors a real estate software developer like me can ever hope for.

You have my pledge that I will continue to keep ProAPOD® the best and most affordable real estate investing software of its kind on the market throughout the new year, and my expectations for 2008 are awesome! May yours be as well.

Happy New Year!

Sincerely,

James R Kobzeff
ProAPOD® Real Estate Investment Software