ProAPOD recently released a video that shows you the incredible (time saving) features included on our Rent Roll form. Did you know, for example, that ProAPOD will automatically count your units and then add the count to the rent roll form? Plus, in the same feature ProAPOD will add the correct unit configuration for each unit counted? Did you know that ProAPOD will transfer certain data from the rent roll you create into the Income and Marketing Package forms? Watch the entire video to see how to do this and more at ProAPOD Video Tutorials…
Those of you acquainted with ProAPOD Real Estate Investment Software are aware that we offer three different solutions ranging in price from $149.95 to $279.95. So I thought you might be interested in also knowing how, why, and when each of these investment software solutions came about. Here’s a quick summary in the order of their development and release date.
ProAPOD Agent 6.0
ProAPOD Agent 6.0 was the first program we developed and released in 2000 as “ProAPOD Multifamily Analysis & Marketing Software”.
Our purpose was straightforward: We wanted to provide real estate agents seeking to work with multifamily property with an easy-to-use way to create an APOD, a ten-year Proforma Income Statement and Marketing Package. What we discovered at that time were software programs much too expensive for regular folks, way overly-complex for day-to-day use, or simply too lack-luster to suit our taste.
Since its release, numerous features and reports were added along with a name change. But the concept remains the same. To provide agents who understand little to nothing about investment property or the formulas (especially residential agents) with all the essential elements to work with multifamily properties easily.
ProAPOD Agent 6.0 includes full analysis and marketing reports without computations for either tax shelter or time value of money and is truly a program for residential agents who would like to work with multifamily property as well as residential property; only not as regularly. Learn more at >> real estate agent software…
ProAPOD Executive 10.0
ProAPOD Executive 10.0 was developed and released in 2004 at the request of customers who begged us for a “ProAPOD-quality” investment software solution that would also include computations for tax shelter and time value of money.
So we took ProAPOD and added the necessary forms, computations, and reports needed and surprisingly developed what others have heralded as “the best and most affordable software solution of its kind on the market today”.
ProAPOD Executive 10.0 is a rental property analysis and marketing solution that computes all four returns associated with investment real estate, i.e., cash flow, appreciation, loan amortization, and tax shelter (including computations for depreciation, capital gains, recapture tax, mortgage interest and amortized points) as well as time value of money.
This is the investment software typically used by agents and investors who are more engaged in investment property and seek a deep-level cash flow analysis and marketing solution. Learn more at >> real estate investment software…
ProAPOD Investor 4.0
ProAPOD Investor 4.0 was developed and released in 2008 after we discovered that some seminar “gurus” were charging hefty sums to new investors for what we considered to be sub-standard real estate investor software for novices.
As a result, we developed this software solution with triple the benefits at a fraction of the cost. Our purpose was simple: To offer “mom and pop” investors (those who invest infrequently) with the necessary elements to determine what rate of return they might achieve on an investment opportunity before making a purchase.
ProAPOD Investor 4.0 includes full consideration for tax shelter and time value of money (which is important to all investors) but excludes the more robust analysis and marketing options many “mom and pop” investors who invest with minimal regard about selling the property generally have interest.
This software program also includes a “learning center” on each form for those who would also like to learn the formulas. Learn more at >> real estate investor software…
Achieving big profits is something that is desired by every property investor. However, not every property that is for sale has true potential of delivering double-digit returns over the investor’s holding period. Many properties that are up for sale are touted by their sellers and promoters as great investment opportunities, but only some selected ones have very high chances to actually deliver really high returns.
First of all, unless the investor is buying property in a highly risky country/market where prevailing prices allow above 10% initial yields, double-digit returns can not be accomplished if significant value gains are not attained after the property is acquired. The secret then to achieving big profits through real estate investing is to spot properties, which have very high chances of registering strong value increases after they are acquired. Within this context, it is extremely important for investors to know what kind of clues can help them identify properties with such potential.
Based on empirical evidence describing the behavior of real estate markets and property values over the past decades in free economies, we can argue with a high degree of certainty that properties that are found under a particular set of economic/market synergies and circumstances have very high chances to register strong income and value gains in the short to medium term. On the other hand, we can also argue with a high degree of certainty that properties that are found under another set of economic/market synergies and circumstances have very small chances to register any value gains over the short to medium term.
In addition, based on empirical evidence regarding the spatial dynamics of real estate demand, property rents and values within contemporary cities and urban areas, we can argue that, under a specific set of circumstances, there are specific locations within a metropolitan area that have significantly greater chances than other locations in the same urban area to register strong property value gains in the short to medium term.
Investors who are serious about sharpening their ability of sorting out among the many opportunities that come to their attention only the ones that have the highest chances of delivering big profits, need to understand the general categories and subcategories of properties with big profit potential as defined by a set of market/economic synergies and circumstances, as well as a set of locational parameters.
Dr. Petros Sivitanides, the author of Real Estate Investing for Double-Digit Returns, has a Ph.D. from M.I.T. and over 17 years of experience in real estate investment consulting, research and forecasting. More on property investing for double-digit returns can be found here.
Article Source: ArticleSpan
Invest is the word to express act of investing or laying out funds or capital in an activity with the belief of profit. Investment is the assurance of something additional than money, time, energy or effort, a plan with the prospect of some valuable result, this job calls for the investment of some hard thinking.
In wide terms there are four major investment points cover how you complete most financial objectives, these investment objectives are important because positive products and plans work for one purpose but may produce poor results for another objective, it is quite possible you will apply a number of these investment objectives at the same time to accomplish different objectives without any disagreement. Let’s observe these objectives and see how they are different, capital approval is concerned with lasting growth. This strategy is most well-known in retirement plans where investments work for many years inside a qualified plan but investing for capital approval is not restricted to qualified retirement accounts.
If your goal is setting up to hold the stocks for several years, you are satisfied to let them produce within your range, reinvesting payments to purchase more shares. A classic approach employs making normal purchases. You are not very worried with everyday variations but maintain a close eye on the basics of the company for adjust that could affect continuing growth.
At the time of investing, you are essentially betting at least to a certain extent and it is not likely to recognize the result until the betting game is finished. Then only you will come to identify whether you’re success or failure. There is nothing definite about investment, in order to benefit from investments you make and need to have a good investment strategy so that you can be a winner most of the times. Nearly everyone keeps thinking that investment policy involves a lot of work but this is not fact. Investment strategy is about investing your money in varied investment so that you can get to your financial goals within a preset period of time. Instance, if you think about investing in stocks of electronic companies. Each type of investment has separate investments.
It is fairly easy to get confused with all the person investments that are available when conducting a research on the different types of investments. Though your investment strategy as to be such so that you can benefit to the highest while taking into account your investment manner and risk tolerance. Risk tolerance refers to the amount of capital you might be ready to invest without feeling the touch. Investment method is about either being conformist or aggressive.
If you are conformist, you will select for mutual funds, and if aggressive investor for shares of companies. When someone who you be supposed turn to when you have any question or doubts about your investments. Make sure you have a sound financial goal, in order to work successfully with your financial planner. Your strategy for investing will be developed based on your ambitions.
Real Estate Investor TV is an online resource which provides training on real estate investing for real estate investors. It also provides free video resources, tips, ideas, and “how-to’s” to beginners and experienced investors. For more information log on to the website http://www.REI-TV.com
Article Source: ArticleSpan
The term negative gearing is not very widely used in South Africa by property investors, in fact if you Google it you will find mostly Australian domain’s. Though the term is not widely used, we found it is extensively employed as an investing strategy and often with little knowledge of its’ meaning and consequences.
In this article, we will look at negative gearing and try to best explain what it is, and how negative gearing affects property investments. Negative gearing, generally speaking, is an investment strategy. However, just like with any other strategy, it can be good or extremely risky, if one doesn’t know what it entails.
What is Negative Gearing?
Negative gearing is the cash flow outcome of buying an investment property where the rental income doesn’t cover the bond. For example, if a property has a mortgage bond repayment of 5,000 and the rental is 4,000 that means the property is negatively geared at 1,000.
Positive gearing would be the opposite; when the rental is 5,000 and the mortgage bond is 4,000, the property is positively geared at 1,000 per month.
Though this example is simplified, it illustrates negative and positive gearing in a simple way.
Both negative and positive gearing in property investing can have major affects on the investment outcome.
Before we explain the advantages and disadvantages of Negative Gearing one has to understand them in context of strategic property investments. When you create a road map such as a plan to achieve a goal, that is a strategy. This plan must take into consideration your strengths and your weaknesses if it is to get you there in "one piece". Such considerations include affordability and cashflow.
Some investors start with little to no money, while others start with extensive income and some with moderate savings. Therefore, a good starting point would be to determine your cash starting point objectively. When to Use Negative Gearing in Property Investing Why would you use negative gearing when it "spells" more expenses in your monthly outgoings?
Property investors use this method for many reasons, however some of the common reasons are as follows:
1. Capital growth / equity. This means they are willing and capable of spending the monthly shortfall for a period of time, to sell the property later at a much higher value. If you buy a property for 500,000 and your bond is 5,000 while the rent is only 4,000 you may be willing to spend the shortfall of 1,000 for a period of 2 years to sell the property at 800,000. The total shortfall was only 24,000 while the profit was 300,000 before tax. Anyone can see why subsidizing 1,000 per month in negative gearing could be quite attractive. This strategy is widely employed in mid to up-market areas when property prices are high and escalating higher every month.
2. Tax reduction. Some investors have a very good portfolio of properties, bringing in a good monthly income. At the end of the year, they have to pay tax on the income generated. In this case some investors opt to buy a negatively geared property to reduce monthly cash and therefore pay less tax. Though this strategy is useful, it usually goes in conjunction with capital growth and not only for tax reduction. As an example, lets say that a portfolio is generating an income of 4,000 per month. This income is taxable. If the investor now chooses to buy 4 properties at a negative cashflow of 1000 a sum of 4,000 negative cashflow is created. Now the monthly income is 4000 – 4000, which is 0. In this strategy, the investor wiped out all income with the negatively geared properties and therefore the taxable income is 0. However, he did get a return for spending all that money from the cashflow each month. The return is the capital growth on the negatively geared properties. The investor will most likely capitalize on the growth later down the road through systems such as refinancing or selling them to buy more properties.
In real life, these calculations are not so simple, quite the opposite is true. However, these examples are for the purpose of illustrating a point and you should ask for professional advice in any strategy you employ. At Property Investor Network investors daily discuss and draw upon each others experiences to improve their investment strategies and find out what works and what doesn’t.
As one may see, in both cases, the investor can use negative gearing for good reasons to further their objectives. In each case though, they ensure that the cash is available to cover the shortfall. And this brings us to the next important point. When NOT to Use Negative Gearing in Property Investing
As you may have noticed by now, the use of this strategy requires cash. This is where you must know your strengths and weaknesses.
When not to use such a strategy, as it can become very risky and even financially deadly:
1. When you don’t have cash. If you don’t have sustainable and consistent cashflow to feed money into negatively geared properties, such strategy could be very risky. If you can’t pay the bond for a period of time, you risk the bank having to repossess the property. The property will be put on execution (auction) or become a PIP (property in possession/foreclosure). That is not a nice situation and shortens your investment career or at least halts it for a while. This is easily avoided if negative gearing is not used in a situation of tight cashflow.
2. When your goal is income. If your goal is to make income on month-to-month basis from property rentals, negative gearing will only slow down the process (even if you are cashflow rich to subsidize properties). It will take quite a while for the rentals to increase for the cashflow to become positive. In most cases this period can extend to years in timeframe. If one chooses the income strategy as their main goal, then purchasing cashflow positive properties should be of highest importance, even if such properties in certain market conditions are far and few between, otherwise it just beats the purposes.
Though these examples are simplified, and in real life the considerations are far more extensive, it illustrates the point that negative gearing can be very risky.
Negative Gearing can be both a good thing and a bad thing. The only way one will ever know whether it is good or bad for them, is first to analyze their current situation and their possibilities, then choose a strategy based on the capabilities.
An investor that chooses Negative Gearing when buying an investment properties, for capital growth could find himself or herself in serious trouble if they didn’t first evaluate affordability. Investment properties should pay out rental income rather than just take money way from the property investor.
Some property investors employ negative gearing on daily basis and do make large sums of money, however in the wrong circumstances and wrong timing this strategy could prove financially deadly.
Sean Wheller is a real estate agent, investor and the founder of the largest online property investing education website in South Africa that specializes in real estate training, and real estate investing courses and seminars.
Article Source: ArticleSpan
ProAPOD Real Estate Investor Software 4.0 has been updated and is ready for you to download. Here’s what we did.
We added a feature to the Proforma form that will allow you to include one additional vacancy rate to your revenue projections. Whereas the previous version of our real estate investor software merely took the vacancy rate entered in the Expenses form and computed for that rate for all ten years in the Proforma Income Statement, you now have the option of adjusting that rate starting in the second year of ownership. This should prove to be extremely useful in cases where you might anticipate a high vacancy rate during the first year of ownership (perhaps the result of remodeling) and a lower vacancy rate thereafter.
For example. Say that the rental property you are purchasing is expected to have (for whatever reason) a 20% vacancy rate during your first year of ownership but only a 5% rate for years 2-10. Rather than you being stuck having to project your revenues for ten years based upon an 80% occupancy, the software will automatically start computing the revenues and returns at a 95% occupancy starting in the second year (or whatever rate and year you choose).
To obtain this FREE real estate investor software update, simply login to your Customer Account page and click the download button under Updates.
Naturally we try hard to maintain the highest quality but we aren’t perfect. Sometimes (albeit rarely) an issue does slip by us, so please report any problems that you might encounter immediately so we can fix it.