The post modern era has experienced tremendous advancement in technology and subsequent high standards of living on a global basis. The United States has been a frontrunner in this regard. The world economy is going through a bad phase and signs of strain have been experienced in all industries including the real estate market. Homeowners are unable to pay their home loans thus leading to widespread seizure of such properties and common incide (more…)

Net present value (NPV) is a real estate investing measure widely used by investors for investment real estate analysis. It serves a specific purpose. Net present value tells the investor whether the target rate of return will be achieved, and hence, whether the property should attract the investor’s capital into that investment.

The net present value model is based on a decision rule that states if the discounted present value of fu (more…)

There’s sound logic for using internal rate of return (IRR) in a real estate analysis: It considers the aspect of time value of money and therein supports the notion that the timing of receipts from a rental property can be as important as the amount received.

Unlike some other popular returns used by investors to analyze the performance and profitability of rental income properties that don’t account for the time value of money such as (more…)