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Real Estate Investment Software Blog

The term leverage means that you use a relatively small amount of cash to acquire or control a property.

Let’s say, for instance, you plan to buy a $200,000 rental property that produces a net operating income (NOI) of $20,000 a year. If you finance this unit with $20,000 down and borrow $180,000 (a loan-to-value ratio of 90 percent), you have highly leveraged your purchase.

Think of it this way. Though you put up only 10 percent of the purchase price, you virtually own and control a property. Whereas if you paid $200,000 cash for the property, you would not have used

ProAPOD® Real estate Investment Software has just added a mortgage payment calculator to its site that will enable visitors to make mortgage payment calculations with a full amortization schedule.

The mortgage payment calculator is easy to use. Simply enter a loan amount, interest rate, and loan term then click Calculate. ProAPOD instantly computes a

by Dr. Green

Investing in real estate can be very profitable if you know what you’re doing.Typically, people invest in residential homes and land. However, investing in commercial real estate can also be beneficial.

Commercial Real Estate Investing Tools

You are going to need a very high-tech calculator, preferably a mortgage calculator. You want to have one that has specific features for real estate related expenses. You will also need a computer that has Internet

The sinking fund factor provides the annuity payment that must be made each conversion period at a given rate of compound interest to have available a specified sum at some given future time period.

This calculation for a sinking fund is used to make real estate investment decisions such as how much money must be placed on reserve to have a specified sum at a given future time period to take care of scheduled capital expenditures or other expenses.

In other words, when a real estate investor wants to start setting aside money so he or she has enough available at some future date to replace, let’s say, for a roof on an apartment complex he or she owns, the investor would create a sinking fund.

The formula:

P = 1 / Sn

Where:
P = Cash flow payments of equal size at equal intervals
Sn = Future value of a series of annuity cash flows

Example: A real estate investor needs $10,000 in 5 years to replace refrigerators in an apartment complex that he or she owns. If the investor starts an ordinary annuity fund (payments made at the end of each year) that yields 15% per year, the investor would use the sinking fund factor to calculate what each annual payment would have to be to accumulate the $10,000.

Use of Excel Spreadsheet:

PMT (15,5,,10000,0) = $1,483.16

Use of HP-10B/12C Calculators:

N = 5
%i = 15
FV = 10,000
PMT = -1,483.16

Note: The HP-I0B/12C calculator must be set for payments to be made at the beginning of each conversion period to make this calculation.

Use of ProAPOD Mortgage Calculator:

Amount = $10,000
When Needed (years) = 5
Frequency (select from menu) = Annually
Type of Annuity (select from menu) = Payment at end of the interval
Compound Rate = 15.00%
Compounding Period (select from menu) = Annually
REQUIRED DEPOSIT = $1,483.16

A sinking fund is a prudent way for real estate investors to plan for future capital expenditures. The idea is straightforward, start depositing some amount of money into an account with compound interest at regular intervals so you have the total amount of money you need at some prescribed future time. Read the rest of this entry »

Dear Customer,

ProAPOD Real Estate Investment Software has made some major changes to its software and website. This is an Update notice, but it also intends to bring you up to date on some other matters as well.

If you purchased ProAPOD Real Estate Software prior to 1/24/08 there is an update. If you purchased on or after 1/24/08 you may disregard this