Archive for the ‘Uncategorized’ Category

Cap Rate–Calculating the Cap Rate

Tuesday, May 13th, 2008

The capitalization rate, a.k.a the–cap rate–is a way of measuring the ratio between cash flows an real estate investment property and the purchase price, or alternatively its current fair market value. Here is the formula for the cap rate:

* annual cash flow / cost (or value) = Capitalization Rate

For example, if a building is purchased for $500,000 and it produces $50,000 in positive net cash flow (costs are subtracted from gross income) during a year, then:

* $50,000 / $500,000 = 0.10 = 10%

The capitalization rate is ten percent.

The capitalization rate is measuring how fast an investment will pay back the original purchase price. from net cash flows. In the example above, the purchased building will be fully capitalized (pay for itself) after five years (100% divided by 10%). If the capitalization rate were 5%, the payback period would be twenty years.

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Software Junk

Tuesday, May 13th, 2008

qarchive.org is a huge archive of software. Recently the giant went on a cleaning spree, and boy did they ever get rid of some junk. I remember not to long ago I could hardly find anything useful. I’m not saying they didn’t have useful software. I’m saying it was hard to find anything useful because of all the junk in the way. I suppose large archives get hit pretty bad. Although, they worked very hard getting rid of adult content and other content found in their servers. Now that it is all cleaned out, I bet the site runs much smoother. I just wanted to say thanks because now I might actually get things done. Great Job!

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Real Estate Attorneys

Saturday, May 10th, 2008

Finding a local real estate attorney you can count on could prove challenging. You could open your phone book and try to wade through the pile, or you could use find an attorney. I have been saved by this service so many times. Because I invest in real estate all over the country, it was impossible for me to just fly into a city and find an attorney I could count on–and that limited my abilities in that market.

I don’t have that problem anymore because I use these professionals:

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Real Estate Bird-Dogging–Flipping

Saturday, May 10th, 2008

A “Bird-Dog” is someone who finds Real Estate investment opportunities, then puts the property under contract and assigns that same contract to another investor–maybe a rehabber–for a fee. A good Bird-Dog will have an army of professionals in the business on standby. It’s not only important to have rehabber’ available to flip the property too, it’s just as important to have all of your note buyers, appraisers, insurance agents, title companies, and other knowledgeable individuals available to help you succeed. If you think you can just work without them–or maybe pick them up along the way–you couldn’t be more wrong. These contacts must be made before you even consider buying your first investment property.

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Using Street View for your Real Estate Investment Business

Saturday, May 10th, 2008

I ran across this video showing how to use Street View to help us manage and farm an area for our real estate investment business’. All I can say is–WOW. This is such a useful tool that cannot be overlooked. I’ll bet if you ask any real estate investor that was investing in real estate before *oogle was around that they’ll tell you they don’t know how they did it without it.

Using StreetView for Your Real Estate Investment Business

Below shows other videos related to real estate investing:

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Analyzing Cash Flow for Real Estate Investments

Thursday, May 8th, 2008

Welcome to Real Estate Investment Software–where you can learn about real estate investing and all the software tools available–and find resources and contacts in the real estate business.

Learning the core concepts for investing in real estate is very important to the success of your future. Knowing how to perform and understand the calculations involved in any real estate investment transaction is vital as well. Once you’ve learned these core concepts and calculations, it’s time to move on to professional software to help you fully analyze a property. You should know when to buy, when to sell, and when to walk away. You don’t have to shoot in the dark any longer.

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