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This week we introduce version 18 of Real Estate Investment Analysis, Professional Edition. It is available immediately for purchase, either for 30-day licenses or time-unlimited licenses. We offer upgrade paths for those who have been with us through previous releases. Currently, this version is available for Windows only. What is New? Fiscal Year Option – […]
Read More… from New REIA Professional version 18 for Windows
Yesterday we released build 1.12 of REIA Pro which fixes two minor issues: first, the Hide Taxes option was not working correctly with one report and second, we have implemented an improvement to the code which controls the saving and closing of the workbook so that you will not be prompted to save the file if […]
In an earlier article we discussed the first of two ways that developers traditionally use to look at the feasibility of income-property projects. That one was called the “Back Door” approach. It will come as no surprise to learn that we call the other method the “Front Door” approach. The difference between these two approaches […]
Read More… from Real Estate Project Feasibility – What’s Behind Door #2?
If you have ever been involved with the development of income property then you may have heard this dictum: One can describe virtually any development project as… a use looking for a site or a site looking for a use. Out of this ying and yang school of development arose two classic techniques to assess […]
Read More… from Real Estate Project Feasibility – What’s Behind Door #1?
…there is at least one concept in the U.S. tax system that is both very simple and really important, and yet I find that it is unfamiliar to many. That concept is the Marginal Tax Rate, and the short version goes like this:
Your marginal tax rate is the rate at which your next dollar of income will be taxed. […]
Read More… from What is Your Marginal Tax Rate, and Why is It Important to You?
In Part 2 of our discussion of real estate expense recoveries, we looked at several different methods that property owners use to recover some of their operating costs from tenants: Simple pass-throughs — These typically work well in single-tenant properties, or in properties with no common area. The expenses chosen for reimbursement are billed to […]
Read More… from Real Estate Expense Recoveries—What are they, how do they work? (part 3)
Expense recoveries (aka reimbursements or pass-throughs) serve as a customary ingredient in leases for non-residential property. In part 1 of this article, I discussed some of the typical ways such an arrangement might play out. The Simple Pass-Through In a single-tenant property the tenant may be expected to pay all or a portion of certain […]
Read More… from Real Estate Expense Recoveries—What are they, how do they work? (part 2)
Readers of my books—especially What Every Real Estate Real Estate Investor Needs to Know About Cash Flow…—have been asking if I would ever be teaching a course. The answer, finally, is “yes.” I’ve just released a comprehensive online course with more than 40 video lessons (including case studies) plus quizzes, practice problems, and other resources. […]
Read More… from New Online Course—Introduction to Real Estate Investment Analysis
If you’ve gotten involved as a landlord or tenant with non-residential real estate, such as retail or office buildings, then you have probably encountered a phenomenon that may go by any of several names: expense recoveries, expense reimbursements, pass-throughs, or common area maintenance (CAM) charges. What exactly is this phenomenon and how does it work? […]
Read More… from Real Estate Expense Recoveries—What are they, how do they work? (part 1)
A while back, I posted a two-part series called “The Cash-on-Cash Conundrum.” In the first installment I explained the calculation and underlying logic of CoC, and in the second I discussed some of the pitfalls of overreliance on this particular measure. …A strong CoC unarguably provides a good sign that your investment is off on the right foot. Is that the end of the story – or should it be? I think this narrow focus can cause an investor to miss some vital issues. […]