Would you like an easy way to learn the formulas for the popular rates of return commonly used in real estate investing by real estate investment specialists? You know, those returns, measures and ratios that routinely appear in real estate… Continue Reading
The break-even ratio (BER, also known as default ratio) is a calculation routinely made by lenders in order to decide whether or not to underwrite a loan request made by real estate investors trying to finance a rental income property.… Continue Reading
The financial management rate of return (or FMRR) is a unique, but highly complex real estate investing rate of return that some argue is a better reflection of real-world investment situations than both internal rate of return (IRR) and modified… Continue Reading
It is a common mistake made by real estate investing novices to exclude (or unintentionally misrepresent) three financial data items when creating a real estate analysis. As a result, the cash flow, rate of return, and profitability numbers presented to… Continue Reading
The true sincerity of a buyer who has interest in acquiring a rental property routinely lies in the amount of “up-front” (or earnest money deposit) he or she is willing to put up with an offer to purchase the property.… Continue Reading
Prudent real estate investors typically will not purchase investment property without first previewing a series of bottom-line numbers that help the investor measure a rental property’s financial performance. All of which, of course, meant to shed enough light about the… Continue Reading