Whether or not you might be a real estate professional who works with income-producing properties, or an individual investor seeking to invest in multifamily or commercial property, crunching the numbers to determine a rental property?s profitability requires time and effort.
This is why real estate investing software was developed. To make rental property cash flow, rates of return and profitability analysis fast, easy, and (most importantly) accurate for those engaged in rental property analysis.
Of course, having the luxury of a good software program to do the work was not always the case before personal computers came along, so allow me to explain the types of issues that those of us engaged in real estate investing back in those early days were confronted with, and software now addresses fluently.
1) The Data ? Back in the days many years before computers and any type of software application, the numbers had to be crunched by hand. This presented two problems. Time had to be spent doing it, and even more, you had to make sure that the data was complete and correct enough for a buyer or property owner to make a wise investment decision. Concerns about whether the data you include in your rental property analysis is complete and accurate is no longer an issue with a real estate software solution.
2) The Formulas ? Because there is so much essential data associated with real estate investing, you no longer are required to know the formulas necessary to calculate that data accurately. With investment real estate software, you never need to learn the formulas. So you never have to worry about forfeiting the race before you even get started.
3) The Presentations ? The cash flow reports are a bigger deal than you might think. Of course, they must contain all the essential data correctly computed, but never under estimate the importance of appearance. Reports must be easy-to-read, easy-to-understand, and, as far as I am concerned, as elegant and professional-looking as possible. A good real estate investment software program creates the reports for you automatically.
4) The Spreadsheet Application ? Personal computers along with spreadsheet software naturally has made it easier. Formulas can be programmed, documents can be formatted, and facts and figures can be entered and later printed out with the click of a mouse. In spite of this, as beneficial as spreadsheets were (and are) for investment real estate analysis, at the same time they present an obstacle. The user must understand the spreadsheet software correctly enough to suitably produce a cash flow presentation that looks good and is sure to integrate all of the exact analysis data and formulas. This is something you no longer have to deal with by using real estate analysis software.
The Software Advantage
Making use of real estate investment property software is just a smart way for any person looking to hammer out a sound rental property analysis. It?s effortless, concise, and it will totally free you from a great deal of hours which in turn you are able to take care of thinking about new strategies to to improve your real estate operation.
This is certainly the advantage of real estate investment software. As opposed to reinventing the wheel (or even worse, neglecting the actual need to crunch the numbers entirely) brokers and real estate investors can potentially work through and calculate multifamily property cash flows, rates of return, and profits effortlessly and instantly. There will be no formulas to figure out or reports to format because in most cases the software solution comes with user-friendly forms. So you pretty much just enter the property cash flow data and print.
The Software Checklist
1) The software program must be easy even for a novice to use.
2) It should include vital computations for rates of return, ratios and measures, as well as top notch, professional-quality reports.
3) It should include a good customer service policy.
4) Other sorts of elements you might want to opt for (depending on your individual professional objectives) are calculations for tax shelter and time value of money, evaluation and marketing reports, both USA and Canadian mortgage amortization, and the capability to apply a currency symbol other than the dollar symbol. Most softwares display a list of their features, so take a few minutes and look them over.
The good news is that it?s all out there for you to start taking advantage of. Due to the worldwide web and numerous search engines, you can locate, buy, and download a real estate investing software solution right from your computer. And best of all, given all the advantages you gain by having it, it won?t cost you an arm and a leg.
About Author: James Kobzeff is the developer of ProAPOD ? leading investment real estate software since 2000. Create cash flow, rates of return, and profitability analysis and marketing presentations for any-size rental property in minutes! Easy to use and very affordable. Learn more => www.proapod.com
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