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Real Estate Investment Analysis - the smart way to invest

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Do-It-Yourself Real Estate Investment Analysis - No Accounting Knowledge Required!

Perhaps you've been working up the nerve to get started in real estate investing for some time. You've read all the how-to books, and you've been out hunting for your moneymaker. And now at long last you've finally found the right property! It looks right, and the deal just 'smells' right to you. Even the location seems perfect.

But hold on... before you jump right in, take a step back and crunch the numbers. Don't even think about the back-of-the-napkin analyses your heroes may have written about. If you're going to spend this much of your hard-earned money, you owe it to yourself to do some thorough due diligence. There's a great reason for this:

The financial analysis process will force you to take a good look at the entire investment picture, not just the parts which appeal to you. Thinking things through in a methodical way reduces the risk that you'll overlook something important.

Analysis is by nature objective, and very different from the emotion-laden, and subjective, negotiating process, where you can easily get caught up in deal-frenzy. Especially when it's your first time out, you don't want to rush into a project which later turns out to be one where you will say (with regret) 'it seemed like a good idea at the time.' Ouch!

Reasons to perform thorough financial analysis on your deal

Here are just a few other very important reasons to perform thorough financial analysis on your deal:

* Techniques such as discount cash flow analysis will project the ultimate potential gain or loss of your investment. This will help you to get from 'it seems like a great deal' to 'it has the potential to net me $200,000 over 5 years.'

* Preparing detailed financial projections is the hallmark of the professional. Doing your homework in this way will improve your attractiveness to bankers, potentially aiding you in attracting financing for your deal.

* Financial analysis can't help you to see the future- you should not expect to be able to accurately predict the end results. However, through financial analysis, you can generate best- and worst-case scenarios in order to create a range of projected results. This will help you to approximate the maximum and minimum amounts you stand to gain or lose, as well as what you believe to be the most-likely gain or loss. Investing is all about risk mitigation.

Through this process, you can avoid deals which exceed your risk threshold, as well as deals which do not offer an adequate upside to balance against the potential downside. Never pursue an investment where you aren't comfortable with the risks. That's what we call 'gambling.' Nor should you pursue investments where the best-case scenario doesn't meet your minimum return.

So don't leap before you look. Run the numbers and be prepared.

Now here's the great news!

Now here's the great news: financial analysis doesn't need to cost a lot of money or take up much of your time. In fact, it can be quick and inexpensive.

The Real Estate Genius real estate investment software runs the numbers instantly- you just gather the facts, and plug in your assumptions. Real Estate Genius is web-based, so there is nothing to download or install on your computer. You're up and running in minutes. For just $4.95, you can get started right now!!!

Visit Real Estate Genius today and start your property investing career off on the right foot.

Or, click here if you'd like to learn more about how to analyze a real estate investment.

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Real Estate Genius is an investment property calculator which enables investors to evaluate real estate deals and project the results. It's quick, and... more »

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