Essential Property Investment Calculations: The numbers led approach to property investment and property management

by Robert Heaton

Essential Property Investment CalculationsOverviewLike any other form of investment, property investment is largely a numbers game. But there’s a big gap between the techniques used by individual investors in the residential buy-to-let market and the more disciplined, numbers-led approach used by professional real estate investors. Moreover, there is no single source of knowledge or wisdom that brings all these calculation techniques and metrics together in one place. This book aims to bridge this gap. It will teach you the property investment techniques and formalised metrics used by professional investors to assess property deals and manage their portfolios.Essential Property Investment Calculations is a guide to all the calculations, numerical techniques and metrics you need to know to take your property investing to the next level.Part OnePart One is all about the early stages of property investment and assessing property deals. It will teach you the property investment calculations you need to know to find, finance and close any property deal. You'll learn techniques used by property valuation experts and negotiation strategies you can use to close your next property deal.Part TwoPart Two is all about property management. It will teach you how to measure property returns, both on a property-by-property basis and at the total portfolio level. You'll learn all the property management KPIs you need to track and improve performance, how to quantify and manage key property investing risks and the five golden rules of portfolio building.Whether you're new to property investing or a seasoned professional, this book is a guide to the essential property investment and property management calculations you need to know.List of ChaptersPart One : Assessing a property dealChapter 1 - Rental yield calculationsChapter 2 - Stress testing deal cash flowChapter 3 - How to value residential propertyChapter 4 - Calculations for deal financingChapter 5 - Ten negotiation tips and tricksPart Two : Managing your property portfolioChapter 6 - Accounting for property investorsChapter 7 - How to measure your returnsChapter 8 - Property management KPIsChapter 9 - Portfolio risk managementChapter 10 - Golden rules of portfolio buildingAbout the AuthorRobert Heaton is a property investor, writer and qualified actuary.He blogs about property investment and property investing at his website.

Genres: Finance

183 pages, Kindle Edition

Published July 24, 2020

Reviews

[Zak Schmoll · Rating 4 out of 5]

Most of you know I am a numbers guy, and most of you know I am actively seeking to build my real estate portfolio. I wanted to brush up on some relevant formulas that might be useful in helping me evaluate the potential profitability of deals that land in front of me. This book is helpful in that regard. The author is British, so some of the things he talks about do not really apply in the United States, but overall, this is a very handy resource. It is part of a reference book than to sit down and read book, but it gave me some ideas of things I hadn't thought about before and metrics that may be relevant. You can probably find a good deal of this information online, but I like having it all in one place and easily accessible.

[Mark · Rating 5 out of 5]

Excellent book

An excellent book giving all of the facts and info and none of the spin about property investing. Unusually for this area of investment, the author is not trying tonupsell you at all. Thoroughly recommended

[Nigel Bates · Rating 5 out of 5]

A Great Read

A great book if you want to know how to analyse a property deal and check up on how your property portfolio is performing. If you want to get into property investment you need to read this book.

[Amy Stubbington · Rating 5 out of 5]

Super practical textbook style book. I would definitely recommend to anyone taking property investment seriously.

[André · Rating 5 out of 5]

Good book to understand real estate investing. General concepts well written.

[Harry Harman · Rating 5 out of 5]

An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.–Benjamin Graham

When the final result is expected to be a compromise, it is often prudent to start from an extreme position.–John Maynard Keynes

Some of these will sound so obvious you may question their usefulness. However, one of the hardest things to do over the long term is to keep your investment focus crystal clear and to keep your head when others are losing theirs.