In this episode, Frank discusses all the ins and outs of analyzing rental property. Don’t forget to check out the bonus audio at the bottom of this page.
– Before you can start investing in anything, you have to have clear objectives.
– The process begins with due diligence….which begins with the marketplace. No property lives in a vacuum.
– Risk vs. return.
– Which quick filters can you use to determine if you want to spend more time analyzing the property.
– Which ratios and metrics to look at during a more thorough analyses.
– Debt coverage ratio…what is it and why is it important.
– What type of investment property is best for you?
– Pro formas…how and why.
– How much do you pay for the property!
Frank Gallinelli is founder and president of pioneering real estate software firm, RealData, and has taught real estate finance at Columbia University. He is also author of several critically-acclaimed books on the subject, including What Every Real Estate Investor Needs to Know about Cash Flow… And 36 Other Key Financial Measures that has sold 85,000 copies worldwide. Previously, he was a Commercial Real Estate Sales Manager at The Benedict Companies. Frank Gallinelli attended both Yale University and Southern Connecticut State University.
Here’s the bonus audio!