Why Serious Investors Use Real Estate Investment Software

real estate investment softwareReal estate investing is a numbers business and real estate investment software is a tool that will help you to precisely crunch those numbers and grow your business.

As a result, serious investors have come to rely on good real estate investment software to help them make smart investment property decisions. So should you.

In this article we’ll consider why serious real estate investors use a real estate investing software solution to insure the best return possible on their real estate investments.

Benefits of Software

  1. It’s fast. A good solution make it possible to analyze cash flows, rates of return, and profitability of rental properties in minutes. This allows individual investors to quickly and easily collect the data required for smart decision-making.
  2. It’s precise. A good solution makes accurate calculations for a wide-range of returns and measures deemed crucial for a sound real estate analysis. Faulty math is the last thing an analyst should have to worry about.
  3. The reports are informative. A good solution creates professional-quality reports investors can print for evaluation purposes and then confidently pass on to colleagues, partners, and lenders.
  4. It knows what data is required. A good solution provides specially designed forms that gather the appropriate facts and figures about a property. This is particularly helpful to real estate investors with little or no rental property analysis experience because they just fill in the forms and print.
  5. It keeps the seller’s data honest. A good solution provides investors with the ability to run the numbers themselves. This will help prevent anyone from presenting unrealistic property numbers and perhaps “slipping one” by.
  6. It’s inexpensive. A good real estate investor software solution does not have to cost an arm and a leg. Anyone can create a top-notch real estate analysis with dynamic reports for just a few hundred dollars.

The Alternative

  1. You can create your own spreadsheet. Excel makes it possible for anyone to create a spreadsheet. But it takes a lot of time to include the correct calculations and format quality reports. So ask yourself whether you are inept enough about real estate investing and Excel before you get started. Just bear in mind that your goal is make a profit on investment properties and not to spend countless hours creating spreadsheets.
  2. You can rely on rules of thumb. It’s easy to calculate a property’s cap rate or gross rent multiplier. But what about mortgage amortization, cash flow after tax, internal rate of return, depreciation allowance as well as the other other important computations? You’re planning to make a huge property investment. So rely on returns more meaningful than upon simple calculations you can do in your head.
  3. You can accept the seller’s data. But it’s never a good idea to accept property performance data point blank because it leaves too much room for others to embellish reality. You must always verify the numbers you are presented for any investment opportunity so you can be sure that they comply with your real estate investing plan.

When You’re Ready

Once you’re ready to invest in good real estate investment software you’ve got to know what to look for. So here are a few suggestions.

  • Look for user-friendly. You want to know what to do from the moment you open the software. If not, be sure you have a number you can call for tech support.
  • Preview the reports. Are they easy to read? Do they contain concise data on the cash flows, rates of return, and profitability you need to make intelligent investment decisions? Are they professional quality?
  • Consider what rates of return you desire. For example, are you interested only in suitable returns calculated without consideration for the elements of tax shelter, or would you prefer full consideration of tax shelter? If so, then look for real estate investment software that includes calculations for things such as depreciation, mortgage interest, amortization of loan points, and cash flow after tax.
  • Would you like both analysis and marketing presentations? If so, then look for a real estate investment software solution that will create an Executive Summary and/or Marketing Package in addition to an APOD, Proforma Income Statement, and Rent Roll.

So You Know

ProAPOD Real Estate Investment Software provides three solutions to meet your business objective and budget that are user-friendly, precise, and of the utmost quality.


James Kobzeff

James Kobzeff has over thirty years experience as a realtor and investment real estate specialist. He is the developer of ProAPOD real estate investment software and freely shares his real estate investing articles.