The One Key Concept All Real Estate Investors Should Understand

If there is one concept that lies at the heart of all investing, especially investment in income-producing real estate — aka “rental property” — then that concept is the income stream. I pound on this idea incessantly in my books, in my grad-school classes, in the check-out line at the supermarket — anywhere I think there is a chance that folks might listen.

The concept is straightforward enough. Each factor about a property that we might assume is crucial — its location, its physical condition, its tenancies — is indeed important, but only to the extent that it affects that property’s income stream. A good location, for example, increases the likelihood of a strong flow of income, especially when we want to resell. Poor physical condition may impair our ability to attract and keep good tenants and to maximize rents. So, the usual suspects notwithstanding, ultimately what really matters to us is the income stream that the property can produce.

What exactly do we mean by “income stream?” Essentially we mean all the cash that comes in minus all that goes out between the time we acquire the property and the time we dispose of it. Not to be overlooked is the initial cash that we commit when we make the purchase. Then, as we own and operate the property, we will have recurring cash flows (revenue minus operating, financing and capital costs) — all positive cash flows, we hope. Finally, when we sell, we look to receive a nice chunk of net cash proceeds after paying off our mortgage and costs of sale.

Our income stream, therefore, is a series of cash flows that occur from the day we purchase until the day we sell. When we buy a rental property we may think we’re acquiring a building, but what we’re really buying is its income stream.

How much is that income stream worth? Is it merely the sum and difference of all the individual cash flows?  This is where experienced investors recognize that there is a time value of money. Put simply, the longer we have to wait to receive a cash flow, the less valuable it is to us. Why? Because we don’t have the use of that money to earn a return elsewhere.

When we look at the expected series of future cash flows from a property, including the cash from resale, we need to look not only at the amounts but also at the timing. How much do we expect to receive and when will we receive it? This is what investors call a discounted cash flow analysis (DCF), and it is key to making an informed decision about investing in an income property. We’ll talk more about DCF and other key investment metrics in future posts. Stay tuned.

— Frank Gallinelli

####

Your time and your investment capital are too valuable to risk on a do-it-yourself investment spreadsheet. For more than 30 years, RealData has provided the best and most reliable real estate investment software to help you make intelligent investment decisions and to create presentations you can confidently show to lenders, clients, and equity partners. Learn more at www.realdata.com.

Copyright 2013,  Frank Gallinelli and RealData® Inc. All Rights Reserved

The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealData® Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

 

The Cash-on-Cash Conundrum, Part 2

In the first part of our discussion, you looked at the simple math that underlies Cash-on-Cash Return. The short version goes like this:  First you calculate your property’s first-year cash flow before taxes—essentially all the cash that comes in from operating the property minus all the cash that goes out. Then you divide that by your initial cash investment, and that percentage is your Cash-on-Cash Return. Nothing could be simpler.

Simplicity is a good part of CoC’s appeal. Unfortunately, that is also part of its weakness. If you are using this metric to help you decide whether a potential income-property purchase is a promising investment or not, then you need to look carefully at the story—or stories—that may lurk behind these numbers. In keeping with our literary metaphor, let’s call them our subplots.

Subplot #1: A Point in Time

Clearly, when you take the first-year’s cash flow and divide it by the cash used to purchase, you are looking at a property’s performance essentially at a point in time, a single year. To be sure, the reliability of your cash flow projection is likely to be greatest in that one, immediate time frame. I often hear investors say that they are not comfortable trying to predict the future, that they would rather just look at what is happening now; and they are quite justified in saying that if the return looks grim or perhaps negative right out of the box, then they have no interest in looking further.

Understandable, but potentially shortsighted—literally. By looking at a single year, you are looking at what may be an improbable investment horizon.  Will you keep this property for just one year? If not, if you plan to hold on to it longer, then you’re not taking into account anything having to do with its possible future performance.  Do you believe each future year will be exactly like this year, or could reasonably anticipated changes in cash flow (such as schedule increases in commercial lease rents, or large expenditures for needed repairs) push the needle far to one end or the other?

Subplot #2: The Time Value of Money

“All right,” you say, “then I’ll estimate the Cash-on-Cash Return for each of the next several years.” That may look like a step in the right direction, and I talk to a lot of folks who insist on doing just that, but it won’t take into account the time value of money.  You’ll be looking at the face value (undiscounted) of expected future cash flows, and weighing them against the present value of your cash investment today. Go back to that original example, where you invested $100,000. If you predict a $20,000 cash flow ten years from now, does that really mean your investment is returning 20%?

To be fair, future-year Cash-on-Cash can impart some useful information. For example, if the metric is both positive and increasing, then you can infer that your cash flow is improving each year. The trend can help inform your decision, but the actual percentage return may not have a great deal of meaning.

Subplot #3: Smoke and Mirrors

You retreat and say, “OK, let’s go back to thinking about just the first year of operation. Surely the Cash-on-Cash should give me a good sense of initial performance.” Do you remember the old computer chestnut, “Garbage in, garbage out?” Your results are only as good as the assumptions and data that you put in the dispose-all, and perhaps things aren’t always (or ever) what they seem.

Consider:

You are looking at in income-and-expense statement (what we call an APOD in real estate investing—Annual Property Operating Data) provided by the seller of the property. The cash flow is based, in part, on operating expenses, one of which is Maintenance and Repairs. The figure in the example above is $6,000; you secure the owner’s tax return and confirm that this is indeed the figure he declared.

That is how much he actually spent, but the figure seems a bit low to you. Does it mean the owner performed as little maintenance as he could get away with and never fixed anything until it was absolutely necessary?  Perhaps the owner did this to prop up the property’s cash flow in anticipation of selling. Despite the fact that the expense disclosed is technically correct, you decide you shouldn’t use it as a forward-looking assumption. Instead, you will probably have to project spending more once you take ownership, resulting in a diminished cash flow and a lower Cash-on-Cash Return. In addition, the property may actually be worth less than you assumed, since it does not throw off as much net income as you were led to believe.

Now take a different point of view. Based on your experience, you think the maintenance and repair expenditure shown is surprisingly high. Could there be an explanation for that? Perhaps the owner used the past year to catch up on deferred maintenance so the property would look more presentable when he put it up for sale.  You might be tempted (but only in your most private thoughts) to test the impact of lower maintenance costs on your cash flow and CoC return.  Once again, the amount that was disclosed, although correct, may not be the amount that gives you the best estimate of future cash flow or Cash-on-Cash Return.

Subplot #4: The Forecast—Cloudy, with a Chance of Cash Flow

Finally, there is the larger issue of the structure of the cash flow statement itself. What you decide to include or exclude in your forecast of future cash flow will almost certainly be driven by your personal agenda in creating that cash flow statement.  Are you the seller of the property, looking to make its income stream appear as strong as possible? Are you the buyer, trying to make a realistic projection of how this property will really perform, and perhaps also conveying that stark realism back to the seller as part of your price negotiation?

In either case—as well as in any of several others, such as buyer looking for financing, general partner looking for equity investors, etc.—you might be putting a bit of a spin on the data, the better to support your point of view and the message you want to deliver.

If you’re the seller, then a bit of topspin seems like a good idea to you. In the example shown in Part 1 of this discussion, you might argue that, not only did you provide accurate and verifiable income and expense data, but that you were being exceptionally open and above-board by suggesting an allowance for vacancy and credit loss even though you experienced no such loss.  Group hug.

But if you’re the buyer, you might return this with some backspin. You thank the seller for being so forthright, but add that you believe the vacancy and credit loss allowance should be closer to 5%, not 3%. In addition, you point out that routine maintenance is great, but will not prevent big-ticket items from wearing out eventually. For example, the heating boiler is barely hanging on, and the flat roof has less than 10 years of life left in it. Hence you propose reconstructing the cash flow statement to reflect the higher vacancy allowance, as well as need for an immediate capital improvement and an ongoing set-aside of cash flow into a reserve account to deal with future replacements, such as the roof.

coc2-1

What previously was a robust 10.4% return now becomes an anemic 2.1%.

coc2-2

The seller objects that this isn’t entirely fair, since the boiler repair is a one-off event, and removing that cost would bring us up to 6.1%.

coc2-3

The seller’s argument cycles you right back to Subplot #1 about the hazards of relying on a rate-of-return metric that looks only at a point in time in what is probably going to be a long-term investment.

Is There a Bottom Line?

What should you conclude about Cash-on-Cash Return? Is it, as some contend, the only metric worth looking at?  Is it of no use at all? The best answer probably lies somewhere in between, that you need to recognize both CoC’s strengths and its limitations, and not rely on it as your sole investment decision-making tool.

On the plus side:

  • It is quick and easy to calculate.
  • It can give an immediate comparison to the return on other short-term investments.
  • It focuses on the most current performance of the property; the more recent the data, the more likely it is to be reliable.

Among the negatives:

  • It focuses on single point in time; you may be intending to buy and hold for an extended period, and the future performance of the property can differ greatly from the short term.
  • It does not take into account the time value of money; if you use it beyond the current period, you may be comparing a future, undiscounted cash flow to the amount invested today.
  • It is easy to manipulate the results; hence, a novice investor who relies on this metric alone can be misled by what a third party chooses to include or exclude from a property’s cash flow statement.

So are there some bottom-line recommendations here?  Of course.

Start off by trying to develop a CoC calculation in which you can have reasonable confidence.

To do so, remember that there is no substitute for due diligence. At the most basic level, you need to confirm whether the data you see on the cash flow statement for a particular property is reasonable and accurate. Then you need to go further and examine the physical property and the market to see if there are issues that may affect your confidence in those numbers. Is there any reason to doubt that the current revenue stream will continue as it is now? Is the demand for space in this market changing, for good or ill? Is there deferred maintenance that you will have to deal with? Based on what you find, you may have to reconstruct that cash flow statement.

Don’t just look at what is on the cash flow statement; look for what might be missing. A seller may not volunteer an allowance for vacancy or a need to fund a reserve account, but such items are going to be part of your reality as an owner.

So long as you approach it with sufficient care and due diligence, the Cash-on-Cash Return can give you a useful first look at how a property might perform; but before you commit your investment dollars, you need to do more.

If you plan to operate this property for several years, then you need to take the long view. You should identify your likely investment horizon, and then build a series of pro formas to forecast how the property might perform over time.

A series? Yes. Don’t try to nail your projections of future performance in one pass. Do a best-case, worst-case, and in-between forecast of future cash flows and ultimate resale of the property. Look at the ongoing Debt Coverage Ratio in each case. Examine the IRR or MIRR. Even compare this property to others you might be able to acquire.

Be thorough. Be wary of shortcuts. You’re buying a future income stream; do your homework and run your numbers so you can understand just what it is that you’re buying.  Your investment success depends on it.

— Frank Gallinelli

####

Your time and your investment capital are too valuable to risk on a do-it-yourself investment spreadsheet. For more than 30 years, RealData has provided the best and most reliable real estate investment software to help you make intelligent investment decisions and to create presentations you can confidently show to lenders, clients, and equity partners. Learn more at www.realdata.com.

Copyright 2013,  Frank Gallinelli and RealData® Inc. All Rights Reserved

The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealData® Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

The Cash-on-Cash Conundrum, Part 1

Life is too complicated; we have too many choices, too many options, too many channels on cable TV. It’s not surprising that sometimes we crave simple answers to complex questions.

I see that mindset very often in my interactions with real estate investors. They yearn to embrace the “50% rule” or the “2% rule” or some other shortcut that will help them cut to the chase and decide if a particular property is a good deal or not.

One metric that is relatively simple and historically very popular is the Cash-on-Cash Return (CoC). I encounter many real estate investors (more than a few of whom have a net worth significantly greater than that of this writer) who zero in on that metric like a heat-seeking missile whenever they consider buying a property.  What exactly is Cash-on-Cash Return? How do you calculate it? What are its strengths and weaknesses? Is it a good metric, and perhaps more important, is it good enough?

Cash-on-Cash Return may be one of the few bits of financial terminology whose name could almost serve as its definition. You’re expecting to get a cash return on your cash invested, i.e., to earn cash on your cash. If you express the return as a percentage of the amount invested, then you have the Cash-on-Cash metric.

Let’s see this with some actual numbers.  You are considering the purchase of a particular income property. For this discussion, the purchase price of the property is not the number you want to focus on. Rather, it’s the amount of your own money—the cash you actually put on the table—that you’ll be looking at. You need $100,000 to close the deal.

You’ve obtained information about the rental income, the operating expenses and the expense reimbursements paid by the tenants. To that information you’ve added your own allowance for vacancy and credit loss, as well as your expected annual debt service on the mortgage that you’ll need to complete the purchase. You put this all together into a cash flow statement that looks like this:

coc1-1

Now you do the cash-on-cash math:

coc1-2

So now you see your Cash-on-Cash Return is apparently 10.4%. What are you to make of this?

First, you recognize that this was a very quick and easy calculation to perform. You needed just the amount of your cash investment and some basic information about anticipated revenues and expenditures. No heavy lifting here.

Second, you observe that your cash-on-cash (and therefore your cash flow) is a positive number. That’s really important, because it means you don’t expect to reach into your own pocket to pay the bills. You have more coming in than going out.

Third, you recognize that this really quick calculation allows you to compare the first-year return on this investment to that of other short-term opportunities like CDs or T-Bills. You look at 10.4% and that strikes you as a fairly good rate of return.

In short, your initial take here is that this metric was really easy to calculate; that it told you that the property seemed likely to enjoy a positive cash flow in the first year; and that the rate of return on your cash investment appeared to be significantly better than you might get from a bank or a bond.

Are you satisfied that you can make an informed decision to buy or not to buy this property based on your calculations here? You shouldn’t be. Yes, you believe the rent and expense figures are accurate, and you did the math correctly, but are you confident that you’re seeing the complete picture? My continual mantra to my finance students is, “Look beyond the numbers, look for the story that’s behind what you see on the surface.”

It’s tempting to think that this calculation of cash-on-cash has given you an adequate perspective on how this investment will perform, but there is really a great deal more to look at and to think about here. That’s what we’ll do in the next installment.

(to be continued)

— Frank Gallinelli

####

Your time and your investment capital are too valuable to risk on a do-it-yourself investment spreadsheet. For more than 30 years, RealData has provided the best and most reliable real estate investment software to help you make intelligent investment decisions and to create presentations you can confidently show to lenders, clients, and equity partners. Learn more at www.realdata.com.

Copyright 2013,  Frank Gallinelli and RealData® Inc. All Rights Reserved

The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealData® Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

 

Real Estate Investing: Time to Remember the Lessons of History

As the summer 2013 begins to cool off, many real estate markets are finally starting to heat up. For a lot of folks, who have slogged through five of the worst economic years in memory, it feels a bit like we’ve just been released from the locked trunk of a car.

The temptation now is to celebrate our release from investing confinement by jumping back into the market with both feet. Before we do so, however, it would be wise to reflect on a few of the lessons of recent history.

There were many reasons for the financial meltdown, but one of the biggest surely was the belief that real estate inexorably increases in value over time. To many people, that looked like a law of nature. The reality turned out to be different, and now, as property values start to rise, we have to resist the temptation to start believing this all over again. If not, we will simply create another bubble and repeat the cycle.

Another cause of that meltdown was the tendency to dismiss or completely ignore investment fundamentals.  Real estate simply couldn’t fail to do well (after all, they’re not making any more of it), and we didn’t really need to think too hard about our investments because, surely, they would work out happily in the end.

Savvy investors always knew that this wasn’t necessarily true; they knew that income-producing real estate could go up, down, or sideways.  Time, all by itself, does not create value; the ability of a property to produce income is what creates value, and so the prudent investor would take nothing for granted and always carefully weigh a property’s prospects for generating income today and in the future.

The beginnings of a general economic recoveryand, in particular, a real estate recovery may signal that we can and should get back into the game, but it doesn’t mean that we can return to pre-2008 thinking and disregard the fundamentals that ought to guide our investment decisions:  For example:

Due Diligence: This is just as important in good times as in bad. We need to examine thoroughly and critically all of the financial data we can get our hands on about a potential investment property.  Are the rents really as represented? Are the operating expenses as portrayed by the seller reasonable and complete? Have we done a thorough assessment of the property’s physical condition?

It is essential to remember that a property doesn’t live in a vaccum, so our due diligence needs to extend beyond the individual property and include the local market as well.  What is the prevailing capitalization rate for properties of this type in this market? What kind of rents are similar buildings actually getting, and what are the asking rents in properties that may be in competition with us for tenants? What is the current vacancy rate in this market, and has it been rising or falling? What is the general business climate, and in what direction is it headed?

Cash Flow:    We always need to make hard-headed projections about the prospects for current and future cash flow. Too often we see investors, motivated to make a purchase and get on the presumed gravy train, put together the numbers they want to see.  They ignore the potential for vacancy and credit loss. They ignore setting some of their potential cash flow aside each year as a reserve to pay for that new roof or new HVAC system a few years down the road. We should make best-case, worst-case, and in-between projections to give ourselves a sense of the range of possible outcomes.

It is important to be realistic about cash flow projections. Excessive leverage may seem like a great advantage on the day you close the purchase, but the high debt service may also result in very weak or even negative cash flow. Are you really prepared to support your property out of your own pocket, to absorb unexpected expenses or loss of revenue?

The Long View: We seldom buy an income property with the expectation of flipping it for short-term profit. Rather, our plan is probably to buy and hold so we can derive an annual cash flow plus a long-term gain when we sell. If that is indeed our plan, then we need to forecast the property’s performance not just for one year, but for a likely holding period—perhaps five, seven or ten years—and to compute an Internal Rate of Return for that holding period. Doing so can be especially valuable when we are looking at more than one property that we might purchase.  Which one appears likely to give us the best overall return within our investment horizon?

The Last Word: Investing in real estate can be a profitable move in just about any economic climate if we proceed wisely, so to answer our initial question: Yes—if we’ve been on the sidelines, then this is a fine time to get back in.  But as with any other kind of investment, we can just as easily lose money as make it if we charge ahead without doing our homework and without going through the kind of fundamental analysis and projection that is essential to smart investing. Success in real estate investing, as in most endeavors, doesn’t just happen by good luck or chance. We have to work at it and have our head in the game. The luck will follow.

— Frank Gallinelli

####

Your time and your investment capital are too valuable to risk on a do-it-yourself investment spreadsheet. For more than 30 years, RealData has provided the best and most reliable real estate investment software to help you make intelligent investment decisions and to create presentations you can confidently show to lenders, clients, and equity partners. Learn more at www.realdata.com.

 

Copyright 2013,  Frank Gallinelli and RealData® Inc. All Rights Reserved

The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealData® Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

How to Create Best-Case and Worst-Case Property Analyses in REIA Professional

You already know that pro forma property analysis is an essential part of due diligence before jumping in and spending your money on a real estate investment.  You also know the value of the pro forma analysis is only as good as the care and consideration you give to all your assumptions about the purchase, operation and sale of the property.  Part of being a cautious and calculating investor is to consider best-case assumptions, worst case assumptions and some case in between.  Fortunately, this is an easy matter with RealData’s REIA Professional.

Here’s how:

  1. Create your initial analysis with REIA Pro with a complete set of assumptions.  It does not matter whether these are conservative or aggressive, just save the file with an appropriate name such as “300 Main Street conservative.xltm”
  2. After saving, use Excel’s Save As function to save a copy of the file with a new name.  That file might be  “300 Main Street aggressive.xltm”  Repeat the process for your third case.
  3. Adjust the data in the second two files to match the case.  Save the files.
  4. Open our Comparison Analysis add-on for REIA.
  5. Click the Add Property button to include all three of the files you have created for your property.  You will then see a side-by-side comparison of key metrics for all of the three cases.

Also consider using our new Decision Maker worksheet right within REIA Pro.  This unique dashboard tool allow you to see how 21 metrics (such as Cash on Cash and IRR) change as you change key assumptions about your purchase.  Change purchase price, vacancy rate, loan terms, etc.

Use these exercises to determine just how well your property might perform under a variety of future occurrences.

 

Update – Personal Financial Statement for Macintosh

We have just rolled out a small but significant update, build 1.79, to the Mac edition of our Personal Financial Statement (PFS) product.

This update brings the popular Import utility from PFS Windows to the Mac along with the User Worksheets feature which is common to all our products.

personal-financial-statement-new-features

 

For those of you unfamiliar with this feature, User Worksheets gives one the ability to add / edit / delete additional worksheets within our product to extend and customize product functionality to fit your specific needs.

The Import utility makes quick work of drawing in all your information from an earlier PFS version 4 workbook.  Just open your old financial statement along with the new blank financial statement template – with one click, all data copies to the new file.

Note that RealData maintains two separate editions for all our products for Windows and Macintosh.  This is essential to assure our products work correctly as intended.  We always develop and test each release on respective Windows and Mac computers.

 

New Software Updates to our Macintosh Products

We have just completed a series of important updates to most of our Macintosh products which address printing and other issues for those users who have Excel 2011. These products include Real Estate Investment Analysis (REIA) Professional, REIA Express, Commercial/Industrial Development, On Schedule and Personal Financial Statement. Please see our software updates page for release dates and build numbers.

We encourage all registered users to download these free updates.  If you need to download the latest build, login to your customer account or open a support ticket and we would be happy to assist you.

These Macintosh updates follow our release of REIA Professional version 17 for both Windows and Mac.  We were busy this spring coding such new features as waterfall returns for partnerships, revised tax calculations, updates to our Commercial Income worksheet including individual base years for expense pass-throughs, and the addition of tenant improvements to the new unit and tenant rollover “wizards.”  See all the details of the upgrade on the REIA product page.

Real Estate Investment Courses Enter the E-Learning Revolution

As many of you know, I teach real estate investment analysis in the Master of Science in Real Estate Development program at Columbia University. About a year ago I agreed to teach a similar course at a new online school dedicated exclusively to commercial real estate: Homburg Academy.

During the past several months I’ve been busy recording lectures for their academic program. The more I’ve worked with these folks, the more impressed I’ve become with their professionalism and their commitment to providing quality education for our industry.

On May 16, they are launching an online e-learning portal as an extension of the Academy; the courses in this portal will be available on-demand.

I’m very honored that they’ve chosen my course as one they are including in the launch. Attached below is a copy of their announcement; I encourage you to check them out. You’ll find a link at the bottom where you can sign up if you would like to attend the launch online.

Frank Gallinelli

================================


Real Estate Investment Courses Enter the E-Learning Revolution!

Homburg Academy, an online university specialized in commercial real estate, will launch its proprietary e-learning portal on 16 May. This is an extension of the university’s efforts to provide accessible, affordable real estate education entirely online.

The portal will provide real estate investors and students with 24/7 worldwide access to the entire body of Homburg Academy’s online course materials and video lectures. These courses encompass a wide range of pertinent and interconnected subjects in real estate accounting, appraisal, capital markets, finance, investment analysis, management, risk and portfolio management – to name a few.

Homburg Academy’s current faculty includes 70 of the world’s top real estate professors and professionals in 13 countries – numbers that will continue to grow as new online programs and courses are launched in the coming months. Faculty members include such renowned experts as Frank Gallinelli, author of the bestselling guide, What Every Real Estate Investor Needs to Know about Cash Flow (McGraw-Hill, 2004), and Mastering Real Estate Investment: Examples, Metrics And Case Studies.

Each course contains 10 hours of lecture presentation. They are professionally produced by a team of course designers and multimedia editors to make viewing engaging and interesting. E-learning specialists have optimized each course to maximize knowledge and understanding. Each hour is broken down into easily digestible segments of 15 minutes, followed by a self-assessment quiz. There is also a discussion forum that is open to everyone taking that course to encourage discussion.

By providing easy access to courses by real estate industry’s most qualified experts, the Homburg On-Demand portal ensures that real estate investors can enrich their knowledge base with the highest quality courses available, by leading experts, giving them an edge in today’s competitive global marketplace.

Join the launch event! The Homburg On-Demand launch will stream live on the internet on May 16th at 2 PM (Atlantic Standard Time). Anyone interested may sign up for the live broadcast through Homburg Academy’s On-Demand sign-up page at: http://www.homburgacademy.org

April 1: RealData Announces New Sales Prevention Initiative

April 1, 2013, For Immediate Release: RealData Announces New Sales Prevention Initiative

In an attempt to stem the inexorable tide of its growing popularity, RealData announced today the formation of a new Sales Prevention Department within the company. “Quite simply, it is time for us to take the bull by the tail,” said company founder and President Frank Gallinelli. We can’t allow these sales increases to go unchecked, so we have assembled a new mismanagement team to deal with the problem. Once we get sales under control, we believe we can go from there to put an end to productivity once and for all.”

Heading the new team will be a specialist in customer alienation. According to Gallinelli, the company needs salespeople who are unencumbered by product knowledge or professional expertise, and technical support personnel who can be relied on to provide cryptic and irrelevant responses or to ignore customer questions entirely. “We need to put the ‘us’ back into user-friendly. There’s no room in the software business for customers who can’t take care of themselves.”

Galvanized by their mantra — “Don’t swim with the sharks, float with the flounder!” —-the team has already begun work on the company’s new support infrastructure called, “FAQ – Frequently Avoided Questions.” Said the CEO, “We must strive to please none of the people all of the time.”

The company’s sales prevention initiative is expected to last throughout most of April 1. 😉

for investors:
RealData Software
Real Estate Investment Analysis
Commercial / Industrial Development
On Schedule – Subdivision, Land & Condominium Development
Comparative Lease Analysis

Books by Frank Gallinelli
What Every Real Estate Investor Needs to Know About Cash Flow
Mastering Real Estate Investment
10 Commandments for Real Estate Investors
Insider Secrets to Financing Your Real Estate Investments