book synopsis and reviews
Real estate financial calculations made easy Every real estate investor needs to know how to calculate cash flow, long-term gain, net operating income, and a few other basic financial formulas. What Every Real Estate Investor Needs to Know About Cash Flow . . . is a guide to the 34 most essential calculations that answer such crucial questions as “What is this building really worth today?” “What kind of cash flow can I expect?” “Is this property a good investment?” and “How do I calculate my return?” For beginning investors, real estate veterans, commercial brokers, and sellers as well as buyers, this handy reference is a must-have for anyone who wants to make sound decisions based on accurate calculations of:
- Discounted cash flow
- Cash-on-cash return
- Net operating income
- Capitalization rate
- Gross rent multiplier
- Net present value
- Payback period
- Mortgage amortization
- And many more
From the Author
Can a book filled with numbers possibly be exciting? If you’re truly interested in real estate investing then you must first realize that investing in income properties is all about the numbers. It’s about discounted cash flow and rates of return and net operating income and cap rates. If you understand how these and other key concepts work, then you’re on your way to success – and that’s exciting. I also believe you’ll find the presentation of this material entertaining. I sought to write this in a way that would make it accessible to beginners and professionals alike. I present more than three dozen key concepts and calculations. The book is peppered with “Rules of Thumb” that you can use as benchmarks when you evaluate potential investment properties. I also provide numerous examples and sample problems that you can use to check your understanding. As you progress you’ll learn how to read a property’s vital signs and how to put financial concepts to work for successful investing in real estate. As important as these financial measures are, some can be tedious to perform manually. For those I show you how to use simple spreadsheet models to accomplish those tasks. I also provide you with a link to a special website we created where readers of the book can download many of these models as well as other valuable tools. I hope that you’ll find many good ideas here and that you’ll use what you learn to help you make solid investment choices.
See all Editorial Reviews
