ProAPOD®

Real Estate Investment Software Blog

Twenty years ago participants in the real estate investment process relied on a calculator and amortization schedule to create the analysis required to make informed investment decisions.

You are looking seriously to purchase a duplex priced at $300,000 and feel that it is a pretty good deal. Moreover, the bank informs you that you might qualify with 10 percent down, or a first mortgage of $270,000, at a rate of 7 percent and a term of 30 years.

If you own a rental property with a vacant unit, it is tempting to show the unit off to the first prospective tenant who walks into the management office.

Real estate valuation is based upon the principals of economics. Whether its residential or commercial real estate, an office building or apartment building, the value of real estate involves the forces of supply and demand in the marketplace.

There are different ways investments in real estate can be approached.

When rental property is being valued, any number of values can be arrived at depending upon the definition of the value being sought–a real estate investor buys rental property based on the specific value that is important to the investor.