Master the simple formulas behind every great real estate deal for a foolproof investing strategy.
Whether you’re looking to purchase your first rental property, scale a portfolio, or evaluate massive syndication deals, every great real estate deal comes down to a few key metrics. From cash flow to compound interest, Real Estate by the Numbers makes it easy for anyone to master the concepts that form the foundation of real estate investing.
J Scott—best-selling author of four business books—and Dave Meyer—VP of Analytics at Bigger Pockets—combine their data-driven investing experience to teach you everything you need to analyze deals, track your progress, and think like a professional investor. This book makes real estate math easy, and real-world examples from the authors’ own portfolios will help you put these equations into practice. Not only will you maximize your returns, but you can build a personalized strategy and adapt it to changing market conditions.
Real Estate by the Numbers is the real estate reference guide that you’ll come back to time and time again!
Inside, you’ll discover:
- The key questions you should be asking before every investment (and how to find the answers)
- All the key formulas you’ll need to make smart investing decisions
- The basic rules for making your money grow
- The ten most important investing metrics
- How to analyze real estate deals like a pro
- Different strategies to finance real estate deals
- How to track your investing performance over time
- And much more!
Inhoudsopgave
TABLE OF CONTENTS
Part 1: Personal and Business Performance
Chapter 1: Your Personal Financial Statement
Chapter 2: The Balance Sheet
Chapter 3: The Profit and Loss Statement (P&L)
Chapter 4: Examining a Cash-Flowing Property
Part 2: The Concepts
Chapter 5: Interest
Chapter 6: Compounding Effects
Chapter 7: Time Value of Money
Chapter 8: Discounted Cash Flow (DCF) Analysis
Chapter 9: Net Present Value (NPV)
Chapter 10: Internal Rate of Return (IRR)
Chapter 11: Introduction to Real Estate Taxes
Chapter 12: Tax Benefits of Real Estate
Part 3: The Key Return Metrics
Chapter 13: Asking the Right Questions
Chapter 14: Measurements of Profit
Chapter 15: Return on Investment (ROI)
Chapter 16: Equity Multiplier (EM)
Chapter 17: Capitalization Rate (As a Metric)
Chapter 18: Cash on Cash Return (COC)
Chapter 19: Average Annual Return (AAR)
Chapter 20: Compound Annual Growth Rate (CAGR)
Chapter 21: Calculating Internal Rate of Return (IRR)
Chapter 22: Comparing Investments
Chapter 23: Property Valuation
Part 4: Funding and Financing Deals
Chapter 24: Capital Stacks
Chapter 25: Funding Deals with Equity
Chapter 26: Types of Equity Financing
Chapter 27: Introduction to Debt Financing
Chapter 28: Forms of Debt Financing
Chapter 29: The Anatomy of a Loan
Chapter 30: Key Debt Metrics: DSCR, LTV & LTC
Chapter 31: The Loan Constant
Chapter 32: Leverage (As a Concept)
Chapter 33: Positive and Negative Leverage
Chapter 34: Leverage (The Value)
Chapter 35: Boosting Returns with Leverage
Chapter 36: Return on Equity (ROE) and Refinancing
Part 5: Putting it All Together
Chapter 37: Transactional (Active) Versus Residual (Passive) Income
Chapter 38: The Four Ways That Real Estate Generates Returns
Chapter 39: The Compounding Machine: Planning Your Financial Freedom
Chapter 40: Analyzing Deals
Chapter 41: Analyzing Transactional Deals
Chapter 42: Analyzing Transactional Returns – More Than Profit
Chapter 43: Analyzing Residual (Cash Flowing) Deals
Chapter 44: Analyzing A Buy-And-Hold Rental
Chapter 45: Evaluating A Buy-And-Hold Rental
Chapter 46: Evaluating A BRRRR Deal
Over de auteur
Dave Meyer is the VP of Data and Analytics at Bigger Pockets and host of the Bigger Pockets On the Market podcast. He has spent his career working in the technology industry while also investing in real estate, and in 2016, he took the opportunity to combine his professional passions for real estate and technology and joined Bigger Pockets. Dave has been a rental property investor in Colorado since 2010 and invests passively nationwide. Outside of work, he enjoys traveling, eating sandwiches, and being outside. He currently lives in Amsterdam, Netherlands.