It seems only natural for a successful residential real estate investor to eventually want to graduate to the “big leagues” – namely commercial real estate. While commercial real estate offers a chance at enourmous wealth, it contains many pitfalls for the novice investor.
The first pitfall is that residential investors tend to use comparable sales to evaluate deals. For example, if they can pick up a single family house that needs $30,000 in repairs for $100,000 in a neighborhood where houses in good condition sell for $190,000 then they know it’s a good deal. However, this approach in commercial real estate is dangerous. Commercial real estate is far more complex and data must be gathered to perform key analyses.
While one can do this by hand or build their own spreadsheets,real estate software exists to make life simpler. Good Real estate investment software prompts the real estate investor to collect certain data (e.g. rents, vacancy assumptions) and value a project.
Real estate investor software should be easy to use yet flexible enough to handle different scenarios. One such Commercial Real Estate Software is CREmodel developed by SCDG, LLC. It is a highly flexible Excel based financial model constructed in an intuitive modular fashion for ease of input and calculates features like return on investment, present net value, and internal rate of return. At $79, CREmodel is a good alternative to the small and startup investor analysis who does not want to waste time building their own spreadsheets.
Since the model is an Excel spreadsheet, companies and investors find it easy to use yet flexible enough to handle more complicated situations. CREmodel software works in all versions of MS Excel including Excel for Mac. For more information please visit www.cremodel.com
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