Complete Guide to Real Estate Finance for Investment Properties

How to Analyze Any Single-Family, Multifamily, or Commercial Property

Inbunden, Engelska, 2004

389 kr

Beställningsvara. Skickas inom 10-15 vardagar

Fri frakt för medlemmar vid köp för minst 249 kr.

This practical, real-world guide gives investors all the tools they need to make wise decisions when weighing the value and potential of investment properties. Written for old pros as well as novice investors, this friendly, straightforward guide walks readers step by step through every stage of property analysis. Whether you're buying or selling, investing in big commercial properties or single-family rentals, you'll find expert guidance and handy resources on every aspect of real estate finance, including:* Proven, effective valuation techniques* Finance tips for all different kinds of property* How various financing strategies affect investments* Structuring financial instruments, including leverage, debt, equity, and partnerships* Measurements and ratios for investment performance, including capitalization rates and gross rent multiplier ratios* Future and present value analysis* How the appraisal process works* Primary appraisal methods-replacement cost, sales comparison, and income capitalization-and how to know which one to use* How to understand financial statements, including income, balance, and cash flow* Case studies for single-family rentals, multifamily conversions, apartment complexes, and commercial office space* A detailed glossary of important real estate terminology

Produktinformation

Utgivningsdatum2004-08-26
Mått155 x 229 x 25 mm
Vikt476 g
FormatInbunden
SpråkEngelska
Antal sidor288
FörlagJohn Wiley & Sons Inc
ISBN9780471647126

Tillhör följande kategorier

Företagsekonomi inom Ekonomi och ledarskap

STEVE BERGES is a real estate investment professional with over twenty-five years of experience. As Principal of Symphony Homes, he is an active investor specializing in creating value through various real estate mechanisms, including single-family houses, multifamily apartment complexes, and the development and construction of single-family and condominium housing communities. He holds an MBA degree in finance and marketing from Rice University. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings and The Complete Guide to Flipping Properties, both from Wiley.

Part 1 Real Estate Finance 1Chapter 1 Introduction to Real Estate Finance 3Finance as a Discipline 6The Relevance of Finance as It Applies to Value 9Chapter 2 Primary Investment Elements and Their Effect on Financing Strategies 13Time Horizon 13Volume of Investment Activity 18Type of Property 21Chapter 3 Secondary Investment Elements and Their Effect on Financing Strategies 27Cost of Funds 28Amortization Period 31Amount of Funds Borrowed 35Chapter 4 Additional Investment Elements and Their Effect on Financing Strategies 43Loan Duration 43Loan Fees 46Prepayment Penalties 54Chapter 5 Structuring Financial Instruments 61Leverage 61Debt 64Equity 67Partnerships 69Blended Financing and the Weighted Average Cost of Capital 72Options 76Chapter 6 Real Estate Investment Performance Measurements and Ratios 81Net Income Return on Investment 84Cash Return on Investment 85Total Return on Investment 86Net Operating Income 87Capitalization Ratio 89Debt Service Coverage Ratio 92Operating Efficiency Ratio 93Gross Rent Multiplier 98Operating Ratio 99Break-Even Ratio 100Chapter 7 Advanced Real Estate Investment Analysis 103Future Value Analysis 103Present Value Analysis 108Net Present Value Analysis 111Internal Rate of Return 113Chapter 8 The Valuation of Real Property 121Appraisal Defined 121The Nature of Price and Value 122Three Primary Appraisal Methods 123Replacement Cost Method 123Sales Comparison Method 126Income Capitalization Method 128Chapter 9 Financial Statements and Schedules 133Income Statement 136Balance Statement 143Statement of Cash Flows 148Part 2 Case Study Review: Practical Application of Valuation Analysis 153Chapter 10 Case Study 1: Single-Family Rental House 155Test 1: Comparable Sales Analysis 157Test 2: Cash Flow Analysis 162Chapter 11 Case Study 2: Single-Family to Multifamily Conversion 175Exploring Alternative Possibilities 175The Relationship between Risk and Reward 180Chapter 12 Case Study 3: Multifamily Apartment Complex 189Chapter 13 Case Study 4: Single-Family Conversion to Commercial Office Building 203Part 3 Epilogue and Appendixes 229Chapter 14 Epilogue: Destined for Greatness 231Prior Works 231Destined for Greatness 233Appendix A www.thevalueplay.com 243Appendix B www.symphony-homes.com 245Glossary 247Index 269