If you're a serious individual investor then this one is
for you. In this article we'll discuss why the most
successful real estate investors use real estate investment
software to evaluate each investment opportunity.

1) It's fast. Good real estate investing software makes it
possible to analyze cash flows, rates of return, and
profitability of rental properties in minutes. This allows
individual investors to quickly and easily collect the data
required for smart decision-making.

2) It's precise. Good investment evaluation software makes
accurate calculations for a wide-range of returns and
measures deemed crucial to sound real estate analysis.
Faulty math is the last thing an analyst should have to
worry about.

3) The reports are informative. Good real estate investment
software creates professional-quality reports investors can
confidently pass on to colleagues, partners, and lenders.

4) It knows what data is required. Quality investment
software provides specially designed forms that gather the
appropriate facts and figures about a property. This is
particularly helpful to investors with little or no real
estate analysis experience because they just fill in the
forms and print.

5) It keeps the seller's data honest. Anyone prepared to
run the numbers will likely prevent others from making
unrealistic claims about the property and perhaps "slipping
one" by.

6) It's inexpensive. Good realestate investment software
does not have to cost an arm and a leg. Anyone can create
top-notch real estate analysis presentations forever for
just a few hundred dollars.

Okay, now let's consider the alternative.

1) You can create your own spreadsheet. Excel makes it
possible for anyone to mimic investing software solutions.
But it takes time (lots of time) to develop the reports and
calculations provided in good real estate investment
software. You should ask yourself whether you are inept
enough about real estate investing and Excel before you get
started. Also, keep reminding yourself that your goal is
make a profit on rental property, not to agonize over the
minimal cost of your analysis presentations.

2) You can rely on rules of thumb. It's easy to calculate a
property's cap rate or gross rent multiplier. But what
about cash-on-cash return, cash flow after tax, internal
rate of return, and mortgage amortization? Bear in mind
that you are planning to make a huge property investment,
so you should rely on something more meaningful than on
simple calculations you can do in your head.

3) You can accept the seller's data. But it's never a good
idea to accept property data point blank because it leaves
too much room for others to embellish reality. You should
always be prepared to verify the numbers you are presented
about any investment opportunity to be sure that they
comply with your real estate investing plan.

Once you're ready to invest in good real estate investment
software you've got to know what to look for. So here are a
few suggestions.

1) Foremost, be sure that the software is
user-friendly--that you know what to do from the moment you
open it. If not, be sure you have a number you can call for
tech support.

2) Preview the reports. Are they easy to read? Do they
contain concise data on the cash flows, rates of return,
and profitability you need to make intelligent investment
decisions? Are they professional quality?

3) Consider what rates of return you desire. For example,
are you interested only in suitable returns calculated
without consideration for the elements of tax shelter, or
would you prefer full consideration of tax shelter? If so,
then look for real estate investment software that includes
calculations for things such as depreciation, mortgage
interest, amortization of loan points, and cash flow after
tax.

4) Are you interested in creating both realestate analysis
and marketing presentations? If so, then look for a
software solution that will create an Executive Summary or
Marketing Package in addition to an APOD, Proforma Income
Statement, and Rent Roll.

You get the idea.

The important thing is to realize that real estate
investing is a business and real estate investment software
is a tool that will help you to grow that business wisely.
And in the same way that serious investors have come to
rely on good real estate investment software to help them
make smart investment property decisions, so should you.

----------------------------------------------------
James Kobzeff is the developer of ProAPOD - leading rental
property real estate software since 2000. Create cash flow,
rates of return, and other real estate analysis
presentations in minutes! Learn more at =>
http://www.proapod.com

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