{"product_id":"the-complete-guide-to-real-estate-finance-for-investment-properties-isbn-9780471647126","title":"The Complete Guide to Real Estate Finance for Investment Properties","description":"This practical, real-world guide gives investors all the tools they need to make wise decisions when weighing the value and potential of investment properties. Written for old pros as well as novice investors, this friendly, straightforward guide walks readers step by step through every stage of property analysis. Whether you're buying or selling, investing in big commercial properties or single-family rentals, you'll find expert guidance and handy resources on every aspect of real estate finance, including:\u003cbr\u003e * Proven, effective valuation techniques\u003cbr\u003e * Finance tips for all different kinds of property\u003cbr\u003e * How various financing strategies affect investments\u003cbr\u003e * Structuring financial instruments, including leverage, debt, equity, and partnerships\u003cbr\u003e * Measurements and ratios for investment performance, including capitalization rates and gross rent multiplier ratios\u003cbr\u003e * Future and present value analysis\u003cbr\u003e * How the appraisal process works\u003cbr\u003e * Primary appraisal methods-replacement cost, sales comparison, and income capitalization-and how to know which one to use\u003cbr\u003e * How to understand financial statements, including income, balance, and cash flow\u003cbr\u003e * Case studies for single-family rentals, multifamily conversions, apartment complexes, and commercial office space\u003cbr\u003e * A detailed glossary of important real estate terminology \u003cp\u003e\u003cb\u003ePart 1 Real Estate Finance 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Real Estate Finance 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinance as a Discipline 6\u003c\/p\u003e \u003cp\u003eThe Relevance of Finance as It Applies to Value 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Primary Investment Elements and Their Effect on Financing Strategies 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTime Horizon 13\u003c\/p\u003e \u003cp\u003eVolume of Investment Activity 18\u003c\/p\u003e \u003cp\u003eType of Property 21\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Secondary Investment Elements and Their Effect on Financing Strategies 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCost of Funds 28\u003c\/p\u003e \u003cp\u003eAmortization Period 31\u003c\/p\u003e \u003cp\u003eAmount of Funds Borrowed 35\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Additional Investment Elements and Their Effect on Financing Strategies 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLoan Duration 43\u003c\/p\u003e \u003cp\u003eLoan Fees 46\u003c\/p\u003e \u003cp\u003ePrepayment Penalties 54\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Structuring Financial Instruments 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLeverage 61\u003c\/p\u003e \u003cp\u003eDebt 64\u003c\/p\u003e \u003cp\u003eEquity 67\u003c\/p\u003e \u003cp\u003ePartnerships 69\u003c\/p\u003e \u003cp\u003eBlended Financing and the Weighted Average Cost of Capital 72\u003c\/p\u003e \u003cp\u003eOptions 76\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Real Estate Investment Performance Measurements and Ratios 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNet Income Return on Investment 84\u003c\/p\u003e \u003cp\u003eCash Return on Investment 85\u003c\/p\u003e \u003cp\u003eTotal Return on Investment 86\u003c\/p\u003e \u003cp\u003eNet Operating Income 87\u003c\/p\u003e \u003cp\u003eCapitalization Ratio 89\u003c\/p\u003e \u003cp\u003eDebt Service Coverage Ratio 92\u003c\/p\u003e \u003cp\u003eOperating Efficiency Ratio 93\u003c\/p\u003e \u003cp\u003eGross Rent Multiplier 98\u003c\/p\u003e \u003cp\u003eOperating Ratio 99\u003c\/p\u003e \u003cp\u003eBreak-Even Ratio 100\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Advanced Real Estate Investment Analysis 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFuture Value Analysis 103\u003c\/p\u003e \u003cp\u003ePresent Value Analysis 108\u003c\/p\u003e \u003cp\u003eNet Present Value Analysis 111\u003c\/p\u003e \u003cp\u003eInternal Rate of Return 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 The Valuation of Real Property 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAppraisal Defined 121\u003c\/p\u003e \u003cp\u003eThe Nature of Price and Value 122\u003c\/p\u003e \u003cp\u003eThree Primary Appraisal Methods 123\u003c\/p\u003e \u003cp\u003eReplacement Cost Method 123\u003c\/p\u003e \u003cp\u003eSales Comparison Method 126\u003c\/p\u003e \u003cp\u003eIncome Capitalization Method 128\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Financial Statements and Schedules 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIncome Statement 136\u003c\/p\u003e \u003cp\u003eBalance Statement 143\u003c\/p\u003e \u003cp\u003eStatement of Cash Flows 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 2 Case Study Review: Practical Application of Valuation Analysis 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Case Study 1: Single-Family Rental House 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTest 1: Comparable Sales Analysis 157\u003c\/p\u003e \u003cp\u003eTest 2: Cash Flow Analysis 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Case Study 2: Single-Family to Multifamily Conversion 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExploring Alternative Possibilities 175\u003c\/p\u003e \u003cp\u003eThe Relationship between Risk and Reward 180\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Case Study 3: Multifamily Apartment Complex 189\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Case Study 4: Single-Family Conversion to Commercial Office Building 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 3 Epilogue and Appendixes 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Epilogue: Destined for Greatness 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrior Works 231\u003c\/p\u003e \u003cp\u003eDestined for Greatness 233\u003c\/p\u003e \u003cp\u003eAppendix A www.thevalueplay.com 243\u003c\/p\u003e \u003cp\u003eAppendix B www.symphony-homes.com 245\u003c\/p\u003e \u003cp\u003eGlossary 247\u003c\/p\u003e \u003cp\u003eIndex 269\u003c\/p\u003e STEVE BERGES is a real estate investment professional with over twenty-five years of experience. As Principal of Symphony Homes, he is an active investor specializing in creating value through various real estate mechanisms, including single-family houses, multifamily apartment complexes, and the development and construction of single-family and condominium housing communities. He holds an MBA degree in finance and marketing from Rice University. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings and The Complete Guide to Flipping Properties, both from Wiley.   More and more Americans are getting out of the stock market for the relative safety and predictability of real estate. But buying real estate willy-nilly is a recipe for disaster. If you don’t do your homework, you could lose your shirt–just like you would in the stock market.  \u003cp\u003eFor novice investors and old hands alike, The Complete Guide to Real Estate Finance for Investment Properties focuses on the fundamentals of financial analysis and the key principles in property valuation as they apply to real estate investing. This practical guide provides all the tools and tactics investors need to accurately gauge both the present and future value of properties.\u003c\/p\u003e \u003cp\u003eWhether they’re buying or selling, investors must base their decisions on the fundamental principles of real estate finance. Failing to do so will definitely mean failing to make a profit. This handy guide doesn’t offer long-winded theories on finance or quick schemes for making a bundle in real estate, but proven real-world knowledge every investor needs to feel secure that they’ve made a wise investment.\u003c\/p\u003e \u003cp\u003eThis is not another real estate book about how to creatively finance a purchase or get a nothing-down deal. Instead, author Steve Berges explains the basic theories of real estate finance, simplifies them for the average investor, and demonstrates how to use them in real-world situations. Using case studies and examples to illustrate these principles, Berges shows investors how to use traditional property valuation methodologies and how to understand such concepts as cash flow, rate of return, and return on investment. Investors will find everything they need to know about financial statements and schedules, investment performance measurements, the structure of financial instruments, and valuation techniques for any kind of property.\u003c\/p\u003e \u003cp\u003eReal estate is only a smart investment if you’re a smart investor. In this book, Steve Berges walks readers step by step through all the financial analysis techniques needed to get the most out of their real estate investments.\u003c\/p\u003e  This practical, real-world guide gives investors all the tools they need to make wise decisions when weighing the value and potential of investment properties. Written for old pros as well as novice investors, this friendly, straightforward guide walks readers step by step through every stage of property analysis. Whether you’re buying or selling, investing in big commercial properties or single-family rentals, you’ll find expert guidance and handy resources on every aspect of real estate finance, including:  \u003cul\u003e \u003cli\u003eProven, effective valuation techniques\u003c\/li\u003e \u003cli\u003eFinance tips for all different kinds of property\u003c\/li\u003e \u003cli\u003eHow various financing strategies affect investments\u003c\/li\u003e \u003cli\u003eStructuring financial instruments, including leverage, debt, equity, and partnerships\u003c\/li\u003e \u003cli\u003eMeasurements and ratios for investment performance, including capitalization rates and gross rent multiplier ratios\u003c\/li\u003e \u003cli\u003eFuture and present value analysis\u003c\/li\u003e \u003cli\u003eHow the appraisal process works\u003c\/li\u003e \u003cli\u003ePrimary appraisal methods–replacement cost, sales comparison, and income capitalization–and how to know which one to use\u003c\/li\u003e \u003cli\u003eHow to understand financial statements, including income, balance, and cash flow\u003c\/li\u003e \u003cli\u003eCase studies for single-family rentals, multifamily conversions, apartment complexes, and commercial office space\u003c\/li\u003e \u003cli\u003eA detailed glossary of important real estate terminology\u003c\/li\u003e \u003c\/ul\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990192865509,"sku":"NP9780471647126","price":37.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471647126.jpg?v=1761786861","url":"https:\/\/k12savings.com\/products\/the-complete-guide-to-real-estate-finance-for-investment-properties-isbn-9780471647126","provider":"K12savings","version":"1.0","type":"link"}