ProAPOD Real Estate Investment Software Celebrates Twelve Years!

proapod softwareProAPOD Real Estate Investment Software has just completed it’s twelfth year as a leading national provider of real estate investing software solutions to the real estate community.

Originally released in 2000, ProAPOD is currently in use by real estate investors, agents, and other professionals nationwide.

ProAPOD consists of three Excel-based solutions that create rental property cash flow, rate of return and profitability analysis presentations, and one web-based solution that functions as both a real estate calculator and formula-teaching tool.

Solutions

AGENT 6 released 2000. Provides “before tax” cash flow reports and a marketing package. Selected by real estate agents and investors looking for the essential elements to create rental property analysis and marketing reports. Price $149.95. Learn more…

EXECUTIVE 10 released 2004. Provides “after tax” cash flow reports and a marketing package. Selected by real estate investors and agents looking for a cash flow analysis and marketing solution with full tax shelter and time value consideration. Price $279.95. Learn more…

INVESTOR 8 released 2007. Provides “after tax” cash flow reports and a formula-learning center. Selected by novice real estate investors looking for tax shelter, time value and learning elements with fewer reports and marketing features. Price $199.95. Learn more…

iCALCULATOR released 2008. Provides full real estate calculator function with formula-learning. 24/7 online access. Price $69.95. Learn more…

Recognition

Software selected by REALTOR®Magazine May 2003 as a “Cool Tool” feature.

Real estate calculator selected as a classroom requirement for students at Southwestern College Kansas 2008 and 2009.

Pricing

All purchases are one-time only without any mandatory subscription fees.

The software solutions consist of two downloads along with free updates for one year after the date of purchase.

iCALCULATOR is web-based and can be accessed 24/7 immediately after purchase. All updates are free.

 

Inflation Rate Calculator, Update 12-29-12

ProAPOD has updated the online Inflation Rate Calculator provided in iCalculator with the latest US government CPI data released on December 14, 2012.

And guess what? US inflation declined in November for the first time in six months due to lower gasoline prices according to newly released data from the US government. So, good news for now this month.

How to Access

iCalculator customers will be taken directly to the calculator. If you’re not a customer then consider jumping on board at online real estate calculator. You will get a 64% discount by virtue of this article.

  1. Login from the ProAPOD Real Estate Investment Software website
  2. From the top menu click Time Value
  3. In the left menu click Inflation Rate
  4. Then in the form enter a Start year, Dollar amount spent, Ending year, and click Calculate

Update is Free!

All updates to this online real estate calculator are absolutely FREE. Simply login and start using it to figure your own inflation rates between 1913 and 2012.

So You Know

iCalculator provides real estate calculations with the definitions and formulas for dozens of real estate investing returns. It only requires a one-time fee and all updates are FREE. Learn more about this unique online solution and get the discount at online real estate calculator.

 

Happy New Year!

I would like to wish you and your family a wonderful, blessed, and safe Happy New Year.

Hopefully 2013 will be the best year of your life. May it bring you future days filled with a joy of life of work and of family. May it be a time to make lasting and meaningful memories. May it be a time of spiritual contemplation and growth.

James Kobzeff
ProAPOD Real Estate Investment Software

Top Real Estate Investing Concepts to Get You Started!

learn real estate investingReal estate agents and investors just starting to become involved with real estate investing will typically discover very quickly that it’s a different world filled with lots of unrecognizable terms and concepts.

In time, of course, it tends to all make sense. But in the beginning at least, real estate investing can appear foreign enough to dumbfound most of us.

In this article we will look at some commonly-used concepts associated with real estate investing listed under five separate categories.

A. Cash Flow

  1.  Gross Scheduled Income (GSI) – The annual rental income generated as if all units are 100% occupied
  2. Vacancy and Credit Loss – The annual rental income lost due to vacancies, nonpayment of rent, or the inability to place the property in service for any reason.
  3. Gross Operating Income (GOI) – The annual gross income available prior to any allowance for operating expenses: GSI – Vacancy and Credit Loss.
  4. Operating Expenses – The annual cost associated with keeping a rental property in service such as property taxes, insurance, utilities, management fees, and routine maintenance and repair.
  5. Net Operating Income (NOI) – The annual cash flow collected before debt, income taxes, and depreciation are considered: GOI – Operating Expenses.
  6. Debt Service – The annual amount paid to service the mortgage.
  7. Cash Flow Before Tax (CFBT) – The annual cash available before consideration for the owner’s income tax liability: NOI – Debt Service.
  8. Cash Flow After Tax (CFAT) – The spendable cash generated from the investment after consideration for the owner’s tax liability: CFBT – Taxes.

B. Returns, Ratios, Measures

  1. Capitalization Rate (Cap Rate) – One of the most popular real estate investing returns that represents the relationship between a property’s value and its net operating income: NOI / Value
  2. Gross Rent Multiplier (GRM) – A simple method used to estimate the market value of a property: Market Value / GSI = GRM and GRM x GSI = Market Value.
  3. Cash-on-Cash Return (CoC) – The ratio between the property’s cash flow before taxes and the initial cash invested to purchase the property: CFBT / Initial Cash Invested.
  4. Operating Expense Ratio – The ratio of a property’s operating expenses to its gross operating income: Operating Expenses / GOI.
  5. Debt Coverage Ratio (DCR) – The ratio between the property’s net operating income for the year and the annual debt service: NOI / Debt Service.
  6. Break-Even Ratio (BER) – A benchmark often used by lenders to estimate how vulnerable a property is to defaulting on its debt if rental income declines: (Debt Service + Operating Expenses) / Gross Operating Income.
  7. Loan-to-Value Ratio (LTV) – The ratio between the total amount of mortgage financing and the property’s appraised value or selling price, whichever is less: Loan Amount / Lesser of Appraised Value or Actual Selling Price.
  8. Internal Rate of Return (IRR) – By definition internal rate of return is the discount rate at which the present value of all future cash flows is exactly equal to the initial capital investment. Think of it as the rate of return an investor collects on the capital investment.
  9. Net Present Value (NPV) – This is the dollar amount difference between the cash investment and present worth of all future cash flows at a given discount rate (i.e., desired rate of return). An amount equal to or greater than zero means that return is met.

C. Income Taxes

  1. Depreciation (Cost Recovery) – The amount of tax deduction an owner may take each year until the entire “useful life” of the depreciable asset is written off as specified in the tax code. It applies to the physical improvements only (not the land). The useful life for residential property is 27.5 years and 39 years for non-residential property.
  2. Tax Shelter – The allowable deductions an owner may take each year for depreciation, amortized loan points, and mortgage interest.

D. Time Value of Money

  1. Present Value (PV) – What a future cash flow or series of cash flows is worth in today’s dollars. The mathematical procedure is discounting. That is, future cash flow is discounted at some rate to determine its present value.
  2. Future Value (FV) – The sum that a cash flow or series of cash flows will be worth at a specified time in the future. The mathematical procedure is compounding. That is, cash flow is compounded at some rate to determine its future value.

E. Reports

  1. APOD – The Annual Property Operating Data (APOD) provides a quick evaluation of the rental property’s financial performance before taxes for the first year of ownership.
  2. Proforma Income Statement – This provides a forecast of the rental property’s financial performance over some number of years.
  3. Marketing Package – A presentation of the financial and other data associated with an income property used when selling the property.

So You Know

ProAPOD provides real estate investing software solutions that automatically compute for everything listed in this article.
 

Merry Christmas!

I would like to wish you and your family a wonderful, blessed, and safe Christmas Holiday season.

Hopefully it will be a time spent making lasting and meaningful memories with family members exchanging love, encouragement, and true appreciation for one another amidst song and spiritual devotion.

James Kobzeff
ProAPOD Real Estate Investment Software

How to Select Real Estate Investment Software

real estate investment softwareReal estate investment software is what real estate investors, agents and analysts use for conducting a real estate analysis on investment property to determine cash flows, rates of return and profitability.

This is common knowledge.

Quality real estate investment software software automatically creates the wide-range of rental property analysis and marketing reports required for personal investment real estate decisions as well as the presentations to customers, lenders and colleagues.

Okay, so it goes; fair enough.

But you, obviously understand that, otherwise you would not be reading this article. So let’s cut to the chase and tell you how to select a software solution that best meets your real estate investing objective and (more importantly) the amount of money you’re prepared to spend for a real estate investment tool.

So, let’s take a look at what my real estate investing experience has taught me about what you should consider when selecting real estate investment software.

Basics

  • User-friendly. The software must be easy to use and understand.
  • Appealing interface. You don’t want to stare at ugly. Preview the software’s screenshots to see what the forms look like. If screenshots are not provided by the developer, you might want to move on.
  • Correct data and calculations. This goes without saying.

Elements

  • Cash flow analysis. Obviously this is the point of real estate investment software. But it may only provide cash flows and rates of return “before taxes” and not provide the “deeper level” elements required for “after taxes” computations. For some, the primary “before taxes” computations are perfectly suitable; whereas others prefer to pay slightly more to have the “deeper level” elements as well. It really depends on your objective.
  • Tax shelter consideration. This will add computations for “after tax” cash flows and rates of return including computations for depreciation, mortgage interest and amortized loan points. It is a beneficial element but totally optional. You can still create a highly-professional real estate analysis without tax shelter consideration, but it is recommended if you are actively engaged with real estate investing.
  • Time value consideration. This will add the necessary “present value” and “future value” computations needed to create rates of return such as net present value and internal rate of return. Time value of money computations are typically included in software solutions with the elements of tax shelter, but be sure it does.

Features

Software solutions typically provide some features for your benefit, but it may impact the cost. So decide which features you can do without to avoid paying extra, and those you may want if possible. Here are a few suggestions.

  • Pictures. It’s always nice to include pictures of the rental property you’re evaluating.
  • Name rider. The more visible your name and business information is on the reports the better. At the very least you would want it on a cover sheet, but even better when it’s posted on every report.
  • Unlimited units. You may want to evaluate a single-family rental or large apartment complex. So its best that the software doesn’t limit the number of rental units you can work with.
  • Multiple loans. A good feature that enables you to include more than just a primary loan for the property.

Reports

You can expect most real estate investing software to create an APOD, Pro Forma Income Statement and Cover Sheet. But here’s a few other reports you may also want to consider for your real estate analysis presentations.

  • Rent Roll.
  • Marketing Package. Highly recommended if you also plan to market rental income property.
  • Comparable Market Analysis. A good way to establish a property’s market value by comparing the prices similar-type properties in your local area recently sold.
  • Scenario and Sensitivity. Allows you to quickly and easily see how changes in rents or financing could affect revenues, returns, and profitability.
  • Photo Page.A picture is worth a thousand words. So your presentations will benefit when you can include more than one property picture.

Optionals

Optional elements do not affect the integrity of the numbers and may not benefit your real estate investing objective. But they are worth your consideration. After all, “more is better than less” when provided inside your budget.

  • Projection “steps”. The ability to “step” future revenues and expenses when creating a Proforma Income Statement will enable you to make more realistic projections.
  • Passive losses. Important if you want to select between “passive losses carried forward” and “losses taken currently” for your revenue projects.
  • “Smart” forms. Forms with built-in selections, auto formatting, and “real time” calculations will save you time and help protect the integrity of your data entries.
  • Canadian amortization. Canadian agents and investors would certainly want the investment software to compute the correct loan amortization used in Canada.

Cost

Real estate investment software typically starts at $100 and can climb as high as $3,000. Just bear in mind that software is not created equal, so do some digging to insure it provides the elements you want at the level of quality you expect.

So You Know

ProAPOD real estate investment software provides these elements and features in at least one of its three solutions at a very affordable price.