Overview
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Learn what you need to know before you make your first real estate investment. Get tips designed for first-time investors who need an overview of real estate investing basics.
Syllabus
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Introduction
- Start here
- Why invest in real estate?
- Meet Joe
- Which market will Joe choose to invest in?
- Which property will Joe choose to buy?
- How much financing will Joe use?
- Quick peek at Joe's investment financial model
- There is more than one way to invest in real estate
- Introduction to real estate asset types
- Introduction to investment strategies
- Strategies for first time investors
- Overview of real estate market cycles
- The recovery phase
- The expansion phase
- The hypersupply phase
- The recession phase
- The next bust?
- To buy profitably, you must value accurately
- The cost approach to valuation
- The comparable sales approach to valuation
- The income approach to valuation
- Where to get the data
- Regional analysis
- Neighborhood analysis
- Competitive analysis
- What makes a good investment?
- Discounted cash flow and the net present value (NPV)
- Discount rate
- NPV demonstration
- Measuring efficiency: Internal rate of return (IRR)
- IRR demonstration
- Measuring magnitude: Cash multiple
- How to use the measures
- NPV vs. IRR
- The terminal value of an indefinitely held rental
- Investment yields and capitalization rates
- Measures of return summary
- Components of debt
- Interest-only vs. amortized loans
- The amortization calculator
- How leverage impacts investment returns
- Debt leverage summary
- Case study #2 overview
- Market research, part 1
- Market research, part 2
- Detailed look at the back of the envelope (BOE) analysis
- Congratulations
