Last Chance for 2013 Tax Write-off on Real Estate Software

As January 1 quickly approaches, you are given just a few days more to make an investment in your real estate business as well as to take advantage of writing the investment off your income taxes for 2013 with a beneficial real estate software solution.

ProAPOD provides four powerful and affordable real estate software solutions that you should consider to accomplish both. So you gain the benefit of having the best real estate evaluation software available on the web and save tax dollars at the same time.

Agent 6

agent 6The primary essentials to create professional cash flow analysis and marketing presentations when you just want to get started with income property analysis at the greatest value.

Service any multi-family property like a pro quickly, effortlessly, and with 100% professional-quality results. Our recommendation for any real estate agent or investor who is considering rental property analysis for the first time and wants the basic elements, calculations, and reports to hit the ground running.

Price

$149.95
TWO downloads for two computers
NO subscription fees
FREE telephone support

System Requirements:
MS Windows and Excel

Learn more about Agent 6…

Investor 8

Investor 8An affordable ‘deep-level’ cash flow analysis solution when you’re a novice investor who just wants all the robust elements to make ‘expert’ acquisitions for casual investing.

Know your ‘real’ profit and rate of return before you shell out your money on any investment property. Our recommendation for casual ‘mom and pop’ investors who are investing for their future (perhaps for retirement).

Price

$199.95
TWO downloads for two computers
NO subscription fees
FREE telephone support

System Requirements:
MS Windows and Excel

Learn more about Investor 8…

Executive 10

Executive 10Our ultimate deep-level cash flow analysis and marketing real estate software solution when you plan to remain actively engaged with investment real estate property.

Start, build or grow your real estate business with the most complete range of elements, features, and reports. Our recommendation for agents and investors who plan to engage in rental property evaluations as an ongoing business.

Price

Just $279.95
TWO downloads for two computers
NO subscription fees
FREE telephone support

System Requirements:
MS Windows and Excel

Learn more about Executive 10…

iCalculator

iCalculatorMake dozens of real estate calculations in seconds with just a few entries in a user-friendly form…PLUS learn the definitions and formulas as you calculate.

The innovative way to make complex calculations with ease while you learn the nuances of real estate investing. Our recommendation for anyone who wants to avoid using a hand-held financial calculator to make the most popular real estate calculations.

Price

$24.95 (64% off retail)
24/7 online access
NO subscription fees
Unlimited FREE updates

System Requirements:
24/7 mobile online access from any device

Learn more about iCalculator…

 

Understanding the Cap Rate for Real Estate Investing

james kobzeffReal estate investors or other persons regularly associated with investment property undoubtedly have a clear understanding about cap rate (or capitalization rate) and the significant role that cap rates routinely play in real estate investing and investment decision-making.

Cap rate, after all, is certainly one of the most popular rates of return embraced by real estate investors, and probably one of the most calculated returns commonly made by rental property analysts.

As a result, any novice getting involved with investment real estate for the first time will surely be confronted by capitalization rates almost immediately. Yet (not unlike any rental property novice) will undoubtedly not have a clue what the return means or how to calculate it.

This is not a good way for investment property beginners to get started, and does frequently result in some stressful – if not embarrassing – moments when a real estate investor brings it up and they sit there looking dumbfounded. Therefore, we’re going to explain what capitalization rate means in layman’s terms and won’t get hung up on the technical definition or meaning. In other words, we just want to explain it in a way that makes sense to a real estate investing novice servicing rental income property in the “real world” and as it relates to the property, not a textbook.

Capitalization rate expresses as a percentage the ratio between a rental property’s net operating income (i.e., annual rental income less annual operating expenses) and its market value. So think about the rate as the relationship between a rental property’s annual net operating income and its market value.

Formula

Net Operating Income / Market Value = Cap Rate

Example

Let’s say a real estate investor has asked you to figure the cap rates on several rental properties currently listed for sale. One is listed at $750,000 with an NOI of $68,000, and the other $825,000 with $82,000. Moreover, you are expected to suggest which property appears to be the better real estate investment opportunity based upon the result.

Calculation

$68,000 / 750,000 = 9.07%
$82,000 / 825,000 = 9.94%

Result

Bear in mind, that capitalization rates indicate the net operating income’s percent of price.

Therefore from an investor’s point of view, it stands to reason that the higher the rates are the better. Why, because it suggests that the property produces a higher percentage of net operating income related to its price.

That said, you would suggest to the investor that the property with the capitalization rate of 9.94% appears to be the better real estate investment opportunity.

Rule of Thumb

Cap rates vary from area to area and from investor to investor. So don’t look for one ideal rate – it depends on your local market and the investment goal of your real estate investors. Moreover, they don’t provide a true picture of a rental property’s profitability, so never make real estate investment decisions based upon a cap rate alone.

 

The Easy Online Real Estate Calculator Option to Hand-held Calculators

calc-smallSeveral years ago I developed iCalculator because I wanted the ability to make the same-type real estate calculations made by hand-held calculators, but with less effort and time than it normally takes with a hand-held calculator.

For despite their reliability and accuracy, the series of steps and key-stroke entries hand-held calculators require to produce the result is also painfully time-consuming (at least for the more complex real estate calculations). With my iCalculator solution it’s much easier, faster, and a whole lot less frustrating (even the complex ones).

You simply select one of the categories – mortgages, time value of money, cash flows, tax shelter or real estate investment – choose the calculation you want to make, than fill in the appropriate form and hit the Calculate button. It virtually takes just a few seconds to get the result along with a “solution” table so you understand the computation.

depreciation-allowance

click to enlarge

For example, if you’re trying to arrive at the annual depreciation allowance for either a rental income or commercial property, the solution table enables you to see the various formulations required to arrive at the result.

Or maybe you’re a CCIM candidate trying to compute financial management rate of return (FMRR). Again, very cumbersome with an HP10 or HP12 (I know from experience), but now made extremely easy with my iCalculator online solution.

Yes, it required a lot more coding on my part to provide these functions. But my intention is to help you learn the nuances associated with all things related to real estate in addition to making the calculations.

Okay, but as a teacher-at-heart I didn’t stop there. I’ve also included the formulas to many of the computations so you know how they’re calculated. For instance, you can learn the formulas for cap rate, gross rent multiplier, cash-on-cash return and cash flow after taxes along with many others (many others).

Just so you know. My iCalculator solution was selected as a prerequisite for classroom use at Southwestern College Kansas because the Corporate Finance instructor saw that the solution covered the time value of money calculations in an “easy-to-use format” that he deemed beneficial for his students.

My iCalculator solution normally retails at $79.95, but you can purchase it totally risk-free for just $24.95. What does that mean? It means that you can purchase and try it for 5 days and get your money refunded in full if you decide not to keep it, no questions asked. Just let me know via email or phone that you want a refund and it’s done.

Why the discount? It was my original intention to provide a solid alternative to hand-held financial calculators with more functions and features and I want the real estate and education communities to reap the benefit.

Go to iCalculator special discount to preview all the calculations you can make along with several screenshots.  Remember, you save 64% off the retail price and pay just $24.95 totally risk-free for this unique online real estate calculator.