Introduction
Start here
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1. Case Study: Joe's First Investment
Why invest in real estate?
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Meet Joe
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Which market will Joe choose to invest in?
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Which property will Joe choose to buy?
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How much financing will Joe use?
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Quick peek at Joe's investment financial model
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2. The Many Ways to Invest in Real Estate
Introduction to real estate asset types
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There is more than one way to invest in real estate
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Introduction to investment strategies
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Strategies for first time investors
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3. Real Estate Market Cycles
Overview of real estate market cycles
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The recovery phase
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The expansion phase
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The hypersupply phase
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The recession phase
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The next bust?
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4. How to Value a Property
To buy profitably, you must value accurately
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The cost approach to valuation
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The comparable sales approach to valuation
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The income approach to valuation
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5. Understanding Your Market
Where to get the data
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Regional analysis
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Neighborhood analysis
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Competitive analysis
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6. What Makes a Good Investment?
What makes a good investment?
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Discounted cash flow and the net present value (NPV)
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Discount rate
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NPV demonstration
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Measuring efficiency: Internal rate of return (IRR)
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IRR demonstration
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Measuring magnitude: Cash multiple
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How to use the measures
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NPV vs. IRR
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The terminal value of an indefinitely held rental
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Investment yields and capitalization rates
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Measures of return summary
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7. Understanding Leverage
Components of debt
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Interest-only vs. amortized loans
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The amortization calculator
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How leverage impacts investment returns
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Debt leverage summary
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8. Case Study: Rental Income Property Analysis
Case study #2 overview
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Market research, part 1
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Market research, part 2
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Detailed look at the back of the envelope (BOE) analysis
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Conclusion
Congratulations
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Ex_Files_Pre_Investing_Before_Investing_in_Real_Estate.zip
(24.1 MB)