Event Calendar
« Nov 
Jan » December 2013 Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 EC
Tag Archives: yield
Buy or Refinance Now
The valuation of income properties is directly tied to the cost and structure of financing. Real estate is a “borrowed money” business. As interest rates rise, the capitalization rate required to service the debt for a purchase or refinance also rises, and thus the valuation falls. As the valuation falls, existing debt Loan to Value [...]
Posted in Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
The Equity Waterfall for a Syndicator
I just wrote an article about my preferred structure for structuring the equity financing with senior equity, preferred equity, and common equity.
A syndicator that raises private equity may consider an equity waterfall that is similar to a combination of debt and equity. Treat the senior equity like a 1st lien and the preferred equity like [...]
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation |
Tagged capital, cash flow, credit, debt, distribution, equity, exit strategy, expense, financing, income, junior, lien, llc, operating agreement, periodic, personalty, preferred, prioritized, priority, realty, risk, senior, syndication, syndicator, time value of money, waterfall, yield |
Comments Off
Guru Interest Rates
I am often astonished at the real estate “Guru” who charge outrageous (unpublished) interest rates for their products. As if their astronomical pricing isn’t bad enough, they offer time payment plans that are nothing short of usurious, making high credit card interest rates seem reasonable in comparison.
I recently sat through a yet another long-winded video pitch [...]
Posted in Real Estate Investing, Time Value of Money |
Tagged cash, credit, debt, excel, finance, guru, interest, leverage, rate, real estate, software, spreadsheet, time payment, tutorial, usurious, yield |
Comments Off
Capitalization Rate and Cash on Cash Return
I just added a new article on the correct way to calculate the Capitalization Rate (CAP) according to the cost and structure of financing.
An income property is generally valued on its cash flow, either the current cash flow or the anticipated future cash flow after repositioning. The valuation of the cash flow is calculated according [...]
Posted in Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
Generate a PDF syndication package or a loan request package
I just made a major update to the very affordably priced ”Introduction to Income Valuation and Syndication” course. With the sophisticated macro-enabled Excel 2007 ProFormaStabilized.xlsm spreadsheet, you can now generate a multi-page PDF presentation package for syndicating to your private financiers or for submitting a loan request to a commercial lender. There are several tutorial videos [...]
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
New Video: Master Lease and Option RUBS
I added a powerful spreadsheet for calculating and generating invoices for the Ratio Utility Billing System (RUBS). There are 2 video tutorials showing how to use the spreadsheet and how to generate the mail merge templates. The spreadsheet supports unlimited number of residents, you can bill pro-rated for electric, gas, water, sewer, or any combination [...]
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
New Video: ProFormaStabilized Spreadsheet – Finance Package Tutorial1
I just uploaded a major update to my course “Introduction to Income Valuation and Syndication” (at http://bit.ly/itivas-1) that updates the ProFormaStabilized.xlsm spreadsheet and a new video tutorial for generating a PDF finance package.
You can watch the YouTube version of the video by clicking here.
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
Update: Introduction to Income Valuation and Syndication
The course is updated with more improvements for the MasterLeaseAndOption.xlsm and for the ProFormaStabilized.xlsm spreadsheets. A new video tutorial is added for demonstrating how to perform “what if” calculations on actual operating data. Check out the course by clicking here.
You can review the product update history by clicking here.
Thank you for your support!
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
Update: Pro-Forma Stabilized Spreadsheet
A quick note that I just updated the ProFormaStabilized.xlsm spreadsheet to include an “actual data” input column and a “Seek Actual” button. The button calculates the required gross Return on Equity (ROE) and net cash flow required for the specified actual operating data. Now you can use the spreadsheet to calculate a required Capitalization rate [...]
Posted in Introduction to Income Valuation and Syndication, Real Estate Investing |
Tagged aitd, all inclusive trust deed, apartment, buy, buyer, cap rate, capitalization rate, cash flow, cash on cash return, ccr, conventional, credit, debt, equity, fannie mae, fha, financial literacy, financier, freddie mac, gross scheduled income, group investment, interest, invest, lease, leverage, loan to value, ltv, net operating income, principal, real estate, rent, rental income, return on equity, return on investment, roe, roi, sell, seller, software, spreadsheet, subordinate, syndication, syndicator, time value of money, tranche, tvm, va, wrap around, yield |
Comments Off
Low Interest Rates
Low interest rates are very enticing. I want to suggest caution, because an increase in interest rates will dramatically affect the value of real property. Real estate is a “borrowed money” business. The cost and structure of financing determines the income valuation of the property. Similar to bonds, the value varies inversely to the yield [...]
