Analyze property performance
"Measure what you want and buy it."®
Successful investors live the power of that Max-ism. They know : What gets measured gets attention, and, it is this attention to financial performance that helps investors maximize returns. Conducting a comprehensive and accurate financial performance analysis of real estate is THE most important tool in the most successful investor's toolbox. The best investment decisions are never made on a single "isolated factor" like Capitalization Rate.
When do successful investors analyze financial performance?
- They analyze property performance before purchase to...
- help identify and sort out properties based on their specific needs and long term goals
- identify hidden financial potential that can be tapped into after the purchase
- help better understand the current marketplace and neighborhoods
- limit the impact of possible buyer "fudging" of the numbers making it look better than it really is
- They analyze property performance during the purchase process to…
- apply new income and expense data compiled while viewing the property
- apply new income and expense data based on compiled documents (IRS Schedule E and written leases)
- constantly compare the "true" performance a property to other properties available for purchase
- structure the basis for a re-negotiation of price, terms, and conditions of the contract
- They analyze property performance after purchase to…
- understand how the property is currently performing
- compare the current financial performance between this property and other holdings
- maximize returns selling off the lowest of performers and replace or add higher performers
- identify issues that are robbing them of bottom line profits- and then take action to eliminate those issues
What types of properties should I analyze?
You should analyze the financial performance for any property that you would consider purchasing for its income producing potential. Some of the most common property types are:
- Single family units (homes, condos, townhomes)
- 2-4 multi-family unit building
- 5-500+ unit apartment complexes
- Mobile home parks
- Self storage facilities
- Commercial retail (anchor stores, strip malls, shopping centers, etc.)
- Commercial office space / or buildings
As there are hundreds of factors that effect a property's financial performance, you will want to make sure that you are using analysis tools that can handle all of the unique factors for your property type. All versions of REIA Reports were created and designed to be the most accurate, comprehensive, and flexible financial performance analytical tool available.
What should I look for when making decisions about which analysis tools or software to use?
Investors report, that to make the best decisions, it is critical that the output of every performance analysis is:
- comprehensive- shows all the ways the investor will or will not build wealth with property ownership
- accurate- uses verified data input into precise formulas to run sound mathematical calculations
- customized for individual use- investor's pre-selected buying criteria used throughout the analysis
- scalable- provide multiple performance variables for different "what if" scenarios
- easy to understand- terms are defined using natural language; format of report is efficient
- easy to use- all the critical investor and lender decision making factors are all on one page
- affordable- provides a high return on investment for its user
Is there any tool or software out there that meets ALL of the criteria above?
Yes, but only one that we have found! REIA Reports by REIAlliance, is a solution that provides investors a way to analyze the financial performance of any income producing property that can be used before, during, and after the buying and decision making process. This flexible solution also provides the investor with different levels, scope of analysis, and report outputs depending on investor need and use.
The current versions of the report are listed below. Click on any of the links to learn more or to download an example of the report.
REIA Report: Investor - when buying investment property (before, during, or after purchase)
REIA Report: Seller- when selling investment property
REIA Report: Proforma - when analyzing potential future performance performance (e.g. when when flipping or buying a vacant property or one whose current income can't cover debt service)
REIA Report: Portfolio Analysis- analyzes current real estate estate holdings performance and and a builds outputs into a flexible database
All versions of REIA Reports are an easy and inexpensive method for buyers, sellers, lenders, and agents alike to better understand the financial performance of an income producing property based on sound mathematical financial calculations. The reports are designed to meet the needs of investors looking to maximize returns when buying and selling income producing properties. To date, no other analysis tool, at any cost, is as complete, comprehensive, and accepted by lenders around the country. In fact…
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- Call us at 724-368-3650 to schedule a convenient time to discuss your real estate investment analysis needs and learn how we can help you make more money in less time when investing in real estate through research and analysis.
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- Fill out our easy to use on-line inquiry form: How can we help you?
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