-- How Does it Work?
From our experience, it appears that Internal Rate of Return (IRR) is
the metric of choice for many, if not most, real estate investors.
However, you may be aware that there are a few issues with IRR that can
cause you some vexation: If you expect a negative cash flow at some
point in the future, then the IRR computation may simply fail to come
up with a unique result; and with your positive cash flows, IRR may be
a bit too optimistic about the rate at which you can reinvest them.
For these reasons, a variation on IRR, called Modified Internal Rate of Return
(MIRR), can be very important when you analyze an investment property.
When you see how it works, then you’ll
also see that it gives you the opportunity to deal with IRR’s
Our support folks have had a number of calls from users of our Real
Estate Investment Analysis software asking for guidance in using and
understanding MIRR. So -- how does it work, and how
do I choose the “safe”
and “reinvestment” rates that it asks for?
read the rest of the article
Version 2 of REIA Express
The "Express Edition" of REIA has been especially popular among
investors, teachers and students because it is more compact
than our Professional Edition; but some of these users have told us it
would be even more valuable if it could calculate after-tax cash
flows, sale proceeds and IRR, like its big brother, the Pro
Edition. (More about academic licensing in the next section.)
And so... we have just released Version 2 of REIA,
Does It Do?
REIA Express Edition is really three programs in one:
• Detailed Long-Term Analysis -- A
10-year pro forma projection of income and expenses, rent roll,
financing, cash flow before and after taxes, and resale. Examine key
measures of return, such as IRR, PV and cash-on-cash.
• Quick Long-Term Analysis -- A full
"first pass" analysis of a property you can complete in just minutes on
a single worksheet. Save time, and decide if the property merits a more
• Short-Term Analysis -- A month-by-month
approach to a property you plan to buy, renovate and resell within two
• After-Tax Calculations
Annual before- and after-tax cash flows and sale proceeds
Annual before- and after-tax IRR and PV
• Executive Summaries
We've redesigned the Executive Summaries in both
the Short-Term and Detailed Long-Term mode, again to be more like those
in the Pro Edition.
• "Net Selling Price"
Yet again borrowing a feature from the Pro Edition
that our users asked for, we've added the option to deduct or ignore
costs of sale when figuring equity and the PV of NOI plus Reversion.
A number of colleges and universities have been using our Real Estate
Investment Analysis software and other materials for instructional
purposes in their classes on real estate finance and investment.
You can get detailed information about this software on our web site at
Software in the Classroom
If you are a student or teacher in these fields, you should know that
we offer academic versions of most of our products for classroom use.
These academic versions are fully functional and can be used for a
limited time (e.g., a semester). They are available to enrolled real
estate and business students and to teachers for a very nominal
In addition, many instructors also use texts
by RealData founder Frank Gallinelli to provide sample problems and
case studies. These texts dovetail especially well with the Express
Edition of REIA.
If you would like to find out more about academic use of this or any
RealData product, please reach us via our online contact form.
Look and Feel to Our Blog
We hope you clicked the "read the rest..." link in the first story,
above, which took you
to our Real
Estate Investment Blog. We have just updated the look to be
easier on the eyes, and to offer navigation by subject categories as
well as archive dates. We hope you like the new design, and
encourage you to comment on our posts.
We Kindle Some Interest?
Now that Amazon has released their newest Kindle reading device for
just $139, it seems that the popularity of digital books is booming. We
think no book should be left behind, so we want to announce that Frank
Gallinelli's latest, Mastering Real Estate Investment,
is now available for the Kindle. In the coming weeks he will be
releasing some additional ebooks on real estate investment and
development topics, so check or subscribe to our blog for
Thanks to a small newspaper announcement, we discovered the Construction
Institute, which is affiliated with the University of
Hartford. Don't let the name fool you: it's not just about
Connecticut and it's not just for contractors. It's a non-profit,
non-partisan association of diverse professionals, including
architects, engineers, financial professionals, attorneys, municipal
and government agencies, developers, manufacturers, support
and service businesses, and -- yes -- contractors.
What motivated us to pay them a visit at the kick-off of their
Fairfield County expansion is their strong emphasis on education and
training. They have a very full calendar of workshops, professional
certification programs and continuing education. There were
over 160 industry professionals at this event (great for networking),
and we were really impressed by the organization's professionalism. We
put our proverbial money where our mouth is and signed up immediately
If you do business in the Connecticut / New York area, be sure to check
Pricing on Two Software "Bundles"
Just a reminder that we're offering
bigger savings on two of our
With Bundle 4 at $1,199 you now save $564 and get
Estate Investment Analysis (REIA) Professional Edition
With Bundle 5 at $1,299 you get just about
everything but our office furniture, and you save $762 in the process.
receive all of the above, plus
Analysis add-on for REIA Professional
To get these special prices now go
to our "software bundles" page.
Analysis add-on for REIA Professional
Real Estate Investments e-course
Free Shipping on RealData Software
We're continuing our offer of free USPS
first-class shipping on any software order over $50. For details, check
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Estate Cash Flow Concepts Explained!
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