Real estate agents and buyers are often faced with the dilemma of trying to calculate the maximum purchase price a buyer can afford to pay based upon certain buyer criteria.
- The buyers desired cash down payment
- The buyers desired monthly mortgage payment
- The buyers anticipated mortgage rate and terms
For example, let’s say that the buyer has $10,000 cash to put down, can afford to pay $1,200 per month, and would reasonably expect a bank to quote a fully amortized thirty-year loan at 5.9% interest rate.
The solution is fairly straightforward: cash down + loan amount = the maximum purchase price.
Okay, but the challenge is being able to calculate the correct loan amount at an interest rate of 5.9% that will fully amortize at $1,200 per month (principal and interest) for 30 years.
To make it easy for you, we have included a “Maximum Price” calculator in our iCalculator program. You just enter four lines of data to get the result. (Note illustration below).
So You Know
The buyer’s maximum purchase price is just one of over sixty online real estate calculators available in iCalculator. See them all at real estate calculators
According to government data released Thursday, November 17, annual inflation in the United States ran at the fastest rate in two years as consumer prices in October climbed the most they have in the previous six months of this year.
iCalculator, therefore, has updated its Inflation Rate calculator to reflect this most current data. That means you can now compute inflation rates from 1913 through October 2016. For example, you can now determine how much you would have to spend in October 2016 to equal the same buying power for goods and services you spent may have spent (say) $20.00 for similar goods and services in 1913. (Answer: $488.34).
But so you know: iCalculator’s Inflation Rate calculator does not limit you to either the years or the amount you want to compute. You can select any starting year and any ending year (e.g., 1913, 1956, 1988, 2015, and so on). And you can enter any amount (e.g., $1.00, $20, $780, $1,000,000, or whatever).
So You Know
Users never pay for updates. So if you are a current user of iCalculator, the Inflation Rate calculator will automatically reflect this latest update the next time you calculate. Learn more about iCalculator…
Once a real estate broker successfully obtains a listing to sell a rental income property, the next crucial event facing the broker is to get it sold. This is typically done using a marketing package that highlights all the important data related to the property so colleagues and potential real estate investors can preview it.
Though both of ProAPOD’s investing software solutions include a multi-page presentation typically referred to as an “Executive Summary”, they also include a one-page summary simply called the “Marketing Package” (illustrated below).
The benefit of using this “one-page” marketing package is that it is very easy to distribute to colleagues at venues like real estate investing clubs. It provides more than enough property data for a real estate investor or agent to determine whether or not to pursue the property without having to carry a stack of multi-page reports.
So You Know
ProAPOD Agent 6 and Executive 10 real estate investing software solutions both create this one-page marketing package automatically…you simply enter the property data into the appropriate forms and print when you’re ready.