Real Estate Calculations

Comments(4)

• 
  jonesoe3029th December, 2003

  There are some handy RE formulas but it all depends on the particular deal and transaction that you're doing. Is there a specific calculation that you're looking for?

• 
  gusrock141429th December, 2003

  no particular calculation, just something to get me started in figuring out a true return on an investment

• 
  Lufos29th December, 2003

  Rules of Thumb and Middle Finger.
  
  Buying income property. Forget the equity accrual, that is in Gods hands and you know what he thinks of you. Look for a net net net income return of at least 12% per annum.
  
  In any active purchase of Real Estate for Quick Resale. the spread should be at least 40% You try to buy at 60% of True Market Value.
  
  To insure the fidelity of your Real Estate Broker pretend to be stupid and dumb. Still, keep his Wife in the trunk of your car until the deal closes and the check is deposited.
  
  When buying paper, first mortgage, second mortgage. Insure that the total encumbrances are at 80% or www.below.True Property Value. Do not be led astray by Sales Prices, they are as vagrant as the winds of Autumn. In many instances they will be but creations of the Brokers imagination and are not to be confused with present time reality.
  
  Alway be aware of the Theory of Causality. "Stuff Happens!"
  
  When in doubt as to Quo Vades as it applies to Societies, Research into History for prior examples. Then use your best judgement.
  
  Except the judgement of Gurus only in their time frame. For future interpretations throw your own dice.
  
  When in doubt, DONT. This applies to marriages as well as dating.
  
  What else can I say. Lucius

• 
  richmonte29th December, 2003

  On this site there is a worksheet to tell you how good the deal is. I think I can post the link because it is in this site:
  
  http://www.thecreativeinvestor.com/modules.php?name=Tools&op=ProForma
  
  Worked well for me