The 5 Formulas You Need to Analyze Any Real Estate Investment
CCMray • August 30, 2023 • 0 views
Real estate investments come in all shapes and sizes. You got flips, rental properties, commercial real estate, BRRRR (buy rehab rent refinance repeat) deals, and a dozen others. Thankfully you don’t need twenty different calculations to figure out whether any of these are good real estate deals—you only need five. These five real estate formulas are stupidly simple, don’t require a calculator (most of the time), and can be done with almost any real estate deal you come across. If you’re trying to make a serious profit or passive income with real estate, then real estate math is about to become your best friend. Today, Tarl Yarber gives you a step-by-step guide on calculating these numbers, when to use each of them, and where novice investors usually go wrong. Calculating your real estate numbers is one of the most important steps in buying real estate, so feel free to rewind and replay as much as you’d like. Don’t like manually calculating out numbers?
We’ve got you covered. Click the link below to use any of the BiggerPockets real estate investing calculators for your next deal! ~~~~ Use the BiggerPockets Real Estate Calculators on Your Next Property: https://www.biggerpockets.com/investm...
00:00 5 Real Estate Formulas Every Investor Should Know
01:10 1. Cash on Cash Return
09:05 Where Most Investors Get CoC Wrong
14:15 2. Net Operating Income (NOI)
18:09 3. Capitalization Rate (Cap Rate)
24:20 4. DSCR (Debt Service Coverage Ratio)
30:05 5. Max Purchase Price (MPP)
33:21 Run the Numbers BEFORE You Buy!
We’ve got you covered. Click the link below to use any of the BiggerPockets real estate investing calculators for your next deal! ~~~~ Use the BiggerPockets Real Estate Calculators on Your Next Property: https://www.biggerpockets.com/investm...
00:00 5 Real Estate Formulas Every Investor Should Know
01:10 1. Cash on Cash Return
09:05 Where Most Investors Get CoC Wrong
14:15 2. Net Operating Income (NOI)
18:09 3. Capitalization Rate (Cap Rate)
24:20 4. DSCR (Debt Service Coverage Ratio)
30:05 5. Max Purchase Price (MPP)
33:21 Run the Numbers BEFORE You Buy!