Tag Archives: real estate investment analysis

Real Estate Investment Analysis Made Easy

by Dave Peniuk

There are plenty of real estate investors that don’t use any spreadsheets or financial calculators to figure out if a property is a good one to buy or not. And with simple rules of thumb like our 1% rule you don’t necessarily need them. But I’ve been doing dances with spreadsheets since I began.

And, I think that doing some good solid analysis on a potential rental property serves many purposes:

  • You can’t get as emotional about the decision if you let the numbers guide you. The numbers either work or they don’t. It doesn’t matter how much you love the property if it doesn’t generate enough cash flow to cover it’s costs and give you a return then it’s not a good deal.
  • Knowing the variables that go into calculating the numbers allows you to identify areas where you can make more money. For example, if you can lower the financing costs or decrease the insurance you can increase your return. These are things you might not see clearly without a spreadsheet in front of you.
  • Allows you to speak and present professionally to your partners, realtors, mortgage brokers and lenders. Nothing like a concise and simply one page summary of the numbers on a property to make someone understand what you’re doing and want to work with you.
  • If you do analysis over time, it allows you to spot trends with your expenses. You can go back and look at your property’s performance over time and find areas to improve it.

Up until now I had created all of our spreadsheets myself. Well, actually Julie programmed the mortgage calculations into a spreadsheet for me but otherwise I created them all myself. And I like them. But they are a bit complicated and definitely not that pretty looking. So when I had the opportunity to test out RealData’s real estate investment analysis software I jumped at it. We’d interviewed the creator and founder of RealData, Frank Gallinelli, in a  teleseminar a few months ago and he invited us to check out his programs.

Anyway – Julie says I need to create a shorter summary version video instead of the long tutorial like videos I have for you here… but maybe if you’re a detailed kind of person like me you’ll appreciate seeing all the nuts and bolts!! 🙂

The bottom line is that the RealData Standard Edition product is excellent but pretty comprehensive for most residential real estate investors. Why not save yourself $375 and just get the Express Real Estate Analysis package? It’s got everything you need and more – and for Canadians – it’s even all set up for us with the right amortization tables!!

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The links taking you to the RealData products are in fact affiliate links… and if you choose to purchase the product through those links we will make a small commission for our referral. However, we wouldn’t be recommending it if we didn’t think you’d be smart to buy it!! 🙂 The Express product is great – and would be a good addition to any real estate investors tool box of resources.

And of course, if you have a problem with the software and the folks at RealData don’t help you out let us know… we know the President of the company. 🙂


Filed under investing, real estate, Recommended