When you invest in real estate, your objective is simple: use everything at your disposal to ensure that your investment will pay-off. Luckily, investor site Bigger Pockets offers a variety of free real estate investment calculators and other tools to simplify the process and save you hours of complicated math. Let’s see how they work.
Don’t pay too much for a flip house! Use this simple, straightforward tool to estimate the profit you’ll gain by flipping your next investment property. The tool works by taking all your costs into account to determine the real value of your flip. It also has the ability to calculate potential profit in a given time frame. Reports are highly customizable and you even have the option to print out PDFs that you can share with lenders and partners.
This tool can help you estimate the profit you will make from a potential rental property by calculating cash flow on both a monthly and annual timeline. Doing the math to determine your potential return-on-investment is always important, and this calculator makes it easy to estimate your ROI over extended periods of time.
Wholesaling is a great way for someone new to investing to get the ball rolling because it requires much less capital than other options. The process requires a wholesaler to put a property under contract and to assign or resell it to another investor, who buys with cash, lines of credit or a hard money loan. This is a common practice with extensively damaged homes that are being sold at a huge discount.
This calculator helps you analyze a wholesale deal through either a flipper or rental lens. You can determine how to price your property, figure out a max offer price and calculate repair costs and other expenses. Then, you can create custom reports that include detailed information on the deal to share with investors who may be interested in the property.
Bigger Pockets explains, “[This calculator] is based on “70% Rule of Thumb” which states that a rehabber should pay no more than 70% of the after repair value [of a home], less any repair costs or other profit needed.” Use this calculator to determine the maximum purchase price for a flip you’re considering. It’s quick and easy-to-use, giving you fast answers to help you make sound investment decisions.
This calculator does exactly what it sounds like; it calculates what the monthly payments are expected to be on any standard mortgage. There are lots of circumstances when this tool could come in handy. For example, If you plan to purchase and hang onto a property as you renovate it or search for renters, this will give you an idea of holding costs.
It’s a good time to get into real estate, because you have tools that real estate investors have never had before. Take advantage of these tools and use them to help you build a diverse real estate portfolio that will allow you to generate a positive cashflow for years to come.
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We’ve improved the traditional real estate model with modern technology to cut costs, not quality.