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Evaluating an Income Property and the Birth of RealData — Second Episode in My New Podcast Series

Welcome back to my new podcast series. In my first interview I answered some questions about how I got started as an investor, and I hope my experience provided some ideas for you if you’re just looking to get started yourself. 

Now I want to take you on the next few steps in my journey and talk about how I came to learn about analyzing income-property investments.

In this interview I tell you about my first commercial investment, which is where I really found my way in leveraging technology, and which led to the birth of RealData software.

Below is a snippet of the video version of this podcast. You can watch the entire video on youtube, or visit our complete youtube video library (lots of good stuff there for investors). You can also listen to the audio version of my podcasts on Spotify, Apple, or on most anyplace you usually get your podcasts.

 

 
Copyright 2023,  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.


Getting Started in Real Estate Investing — First Episode in My New Podcast Series

You probably all know me as a “numbers guy” who focuses on metrics and analysis of potential real estate investments.

But I hear lot of people who sound frustrated or discouraged by a very basic question: Just how do I get started?

So I’m going to step back from my spreadsheets for a bit and try to address that question — and I’ll do it in this first of a series of podcasts where I’ll talk about the not-so-exotic way I began. Spoiler alert: I’ll discuss something I did back then that I didn’t know had a name, something called BRRRR.

The video below is a snippet from the first podcast. You can listen to the whole thing on Spotify, Apple, or on most anyplace you usually get your podcasts.

 

UPDATE: Episode 2 is available now!

 
Copyright 2023,  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.


Love Your Hat! What is Your Lender Really Looking at When You Apply for a Commercial Mortgage?

If you’re not an all cash buyer, then when you purchase a piece of income-producing real estate you’ll probably need to secure mortgage financing to complete the deal. It’s essential for you to understand what your lender is looking at when underwriting that loan.

And — If you guessed that he or she is not admiring your millinery —  ok then, stick with me here. I’m going to discuss briefly a couple of key yardsticks.

Of course, this short video blog post is just the tip of the iceberg when it comes to evaluating, financing, and acquiring a successful real estate investment.

For in-depth insight into on all the key metrics and methods, check out https://realestateeducation.net/

And you’ll find the software that will do all the heavy lifting for your analysis and presentation at https://realdata.com

 

Copyright 2021,  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.


Video post: Understanding Net Operating Income, Part 2

In Part 1 this post, we looked at the revenue side of our NOI calculation. Now let’s look at the expense side, and how the end result – the NOI itself, is typically used when evaluating a potential real estate investment. Click the image below.

 

If you missed Part 1, you can watch it here.

Copyright 2021,  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.


Video post: Understanding Net Operating Income, Part 1

One topic that seems to generate a lot of interest and questions among investors I speak with is the subject of net operating income. Those who are new to real estate investing and even those with some experience are often unclear as to exactly what it is, what it means, and how to use it.

To shed some light on this topic, I’m going to try something new here – new for me at least – a video blog post. I’ll try to answer those questions by giving you a basic roadmap of how Net Operating Income is calculated, and how it’s used in real investment situations. So —  here we go with Part 1 of 2. Click the image below.

net operating income

 

Part 2 is now available here.

 

Copyright 2021,  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.

 


New content in my online video course

Those of you who are already enrolled in my course, Introduction to Real Estate Investment Analysis, are probably aware that I’ve been regularly adding new content to the course over time.

My most recent addition is a lesson on “Phantom Income.” The lesson discusses how and when it might be possible for your taxable income to outpace your cash flow. Probably something you’d prefer to avoid if you could.

New content like this is always available at no charge to those who are enrolled in the course, but for a limited time this new lesson will be my treat to anyone who would like to view it.

So, even if you’re not already enrolled, just go to the course home page, and scroll down about two-thirds, past my smiling face, until you see the curriculum. You can find the lesson in the middle of the section called Real Estate Pro Formas. Click the Preview button to watch.


In case you missed it, I also added a three-part series this summer called, “Blend and Extend.” 

This is a technique that landlords and tenants have used during difficult times in the past — a technique where a bit of give and take could potentially benefit both parties. A timely topic, I believe, given the upheaval in commercial real estate during the pandemic.

I’m making the first video in the series available as a free preview. Again, go to the curriculum, but this time expand it and scroll to the very bottom to find “Blend and Extend.” That’s where you can preview Part 1.

In the two remaining lesson in this series, I go into more specifics about the ways you might actually run the numbers on a possible lease restructuring to find a scenario acceptable to both sides. I include examples was well as an Excel model that should help you with the calculations.

Since the original release of the course, I’ve added a great deal to my core content, including a series of case study examples, as well as modules on partnerships, development projects, and value-add investments.

But I’m always enthusiastic about broadening the scope of the learning you can derive and the benefits you can reap from the course. Do you have an idea for an additional topic you’d like to see? If so, please pass along your suggestion in the comments section! Thank you.

— Frank G

Copyright 2020,  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 Top 10 Real Estate Finance Books Every Investor Should Read.”

investment book

I was honored to find that one of my books was featured at the top of a recent article on Motley Fool: “The Top 10 Real Estate Finance Books Every Investor Should Read.” The book, “What Every Real Estate Investor Needs to Know About Cash Flow,” was originally published in 2004, is now in its third edition, and is alive and still doing well —  a surprise certainly to me, and probably to the publisher as well.

 

I often get asked what accounts for the book’s long-term appeal, and I think there may be two reasons: First, I avoided “topical” or trendy content, preferring to stick with core concepts and math-based metrics don’t change with time. And second because I really dislike the get-rich quick hype that seems to characterize so many real estate books, and so I shunned that, too.

I don’t think they’ll ever make a movie out of it, but I’m satisfied if it has helped some readers make informed and unemotional investment decisions.

You can find the article here.


Are you involved in real estate education?

We’re reaching out to our followers who teach real estate investment, development, or finance to let you know that our Real Estate Investment Analysis course is available for the virtual classroom – now with volume academic pricing.

For more than a decade I’ve devoted much of my professional life to investor education, as a writer, Columbia adjunct professor, and through my company RealData. As you may know, a few years ago I created an online video course, Introduction to Real Estate Investment Analysis. It has grown to include a broad range of topics that are key to understanding how income-producing properties work, and how investors, developers, lenders, and others evaluate their financial dynamics.

With so many schools and colleges now needing to provide good content for a virtual learning environment, we’ve re-deployed the course as a resource that instructors can add to their existing curricula. We now offer volume academic pricing at a significant discount, depending on class size.

For an overview, including access to sample lessons, go to the course home page.  To see a complete course outline, click here.

If you’re involved in real estate or financial education, then I hope that this can help you provide meaningful content to your remote learners. To get a quote for volume licenses for student use or to discuss this further, please email me at education@realdata.com.

— Frank Gallinelli

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Copyright 2020,  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.


Now earn a digital certificate with my video course, “Introduction to Real Estate Investment Analysis”

Professional education is a great thing. And being able to broadcast news of your success makes it even more valuable.

That’s why I’m announcing a new benefit to students who enroll in my course, Introduction to Real Estate Investment Analysis. I’m now awarding a digital Certificate of Achievement and badge to students who successfully complete the course.

Here are some questions you probably want to ask:

What does it cost? For my students: nothing. RealData is picking up the cost of issuing and hosting the certificate.

What do you mean by “digital certificate?” Your certificate will be hosted by Accredible.com, an industry-leading credentialing platform. As you’ll see below, it’s designed so you can share it easily.

Does that mean I don’t get a physical certificate to hang on my office wall? No, you also get a pdf version you can print.

What’s so special about this digitally hosted certificate?  So glad you asked. Here are a few things you couldn’t do with a traditional certificate:

  • You receive a unique url for your Certificate, so you can share it with employers, clients, industry groups, just about anyone.
  • You can share it on any of your social media networks with just a click on a toolbar.

 Your personal certificate page includes a dashboard, as shown at the left. From there you can…

  • Add it to your LinkedIn profile
  • Add it to your email signature
  • Get the code to embed it in your website
  • Email it to anyone
  • Download it as a PDF
  • Download a badge image, which you can attach to your email signature, put on business cards, etc.
  • Add “evidence” to your certificate to increase your credibility — examples of your work, videos about yourself, links to projects you’ve been involved with – and even more

How do I obtain my certificate?Within a few days after you complete the work to earn your certificate, we’ll send you an email with instructions to access it. If you believe you’ve completed the requirements but haven’t heard from us, please contact us at mailto:education@realdata.com

Terms of Use: Please review our common-sense Terms of Use

I believe our online video course provides a solid educational opportunity for those who want to learn about real estate investment and development. I hope this digital certificate will recognize your efforts and will benefit you for devoting the time and effort to pursue that education. I look forward to contacting you when you complete your coursework!

Frank Gallinelli


Learn by Example

I’ve seen a great deal of interest in the real estate investment case studies that are part of my investment analysis video course — so I’ve spun those cases off as a new mini course, one where you can learn by example.

The cases deal with three different property types:

  • apartment building,
  • mixed-use, and
  • triple-net-leased

They’re similar to those I cover in my grad-school course at Columbia, and I’ve designed them with several purposes in mind:

  • To give you practice working through bumper-to-bumper deal analysis. On what terms does each deal make sense to you?
  • To introduce special situations that you need to understand, such as expense recoveries and triple-net leases.
  • To give you an opportunity to put yourself inside the deal as if you were a real participant, to think as an investor thinks — beyond the numbers, beyond the surface data, as if real money were on the table.

Once you’ve learned about deal analysis with this mini course, you’ll probably want to take the complete course, covering detailed real estate investment metrics, partnerships, development, and more. So here’s more good news:

When you upgrade to the bigger course, you’ll get full credit for  this mini course.

Learn more about my case study course

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