Includes index.

Real Estate Finance -- Introduction to Real Estate Finance -- Finance as a Discipline -- The Relevance of Finance as It Applies to Value -- Primary Investment Elements and Their Effect on Financing Strategies -- Time Horizon -- Volume of Investment Activity -- Type of Property -- Secondary Investment Elements and Their Effect on Financing Strategies -- Cost of Funds -- Amortization Period -- Amount of Funds Borrowed -- Additional Investment Elements and Their Effect on Financing Strategies -- Loan Duration -- Loan Fees -- Prepayment Penalties -- Structuring Financial Instruments -- Leverage -- Debt -- Equity -- Partnerships -- Blended Financing and the Weighted Average Cost of Capital -- Options -- Real Estate Investment Performance Measurements and Ratios -- Net Income Return on Investment -- Cash Return on Investment -- Total Return on Investment -- Net Operating Income -- Capitalization Ratio -- Debt Service Coverage Ratio -- Operating Efficiency Ratio -- Gross Rent Multiplier -- Operating Ratio -- Break-Even Ratio -- Advanced Real Estate Investment Analysis -- Future Value Analysis -- Present Value Analysis -- Net Present Value Analysis -- Internal Rate of Return -- The Valuation of Real Property -- Appraisal Defined -- The Nature of Price and Value -- Three Primary Appraisal Methods -- Replacement Cost Method -- Sales Comparison Method -- Income Capitalization Method -- Financial Statements and Schedules -- Income Statement -- Balance Statement -- Statement of Cash Flows -- Case Study Review: Practical Application of Valuation Analysis -- Case Study 1: Single-Family Rental House -- Comparable Sales Analysis -- Cash Flow Analysis -- Case Study 2: Single-Family to Multifamily Conversion -- Exploring Alternative Possibilities -- The Relationship between Risk and Reward -- Case Study 3: Multifamily Apartment Complex -- Case Study 4: Single-Family Conversion to Commercial Office Building -- Epilogue and Appendixes -- Epilogue: Destined for Greatness -- Prior Works -- Destined for Greatness -- www.thevalueplay.com -- www.symphony-homes.com.

More and more Americans are getting out of the stock market for the relative safety and predictability of real estate. But buying real estate willy-nilly is a recipe for disaster. If you don't do your homework, you could lose your shirt -- just like you would in the stock market. For novice investors and old hands alike, The Complete Guide to Real Estate Finance for Investment Properties focuses on the fundamentals of financial analysis and the key principles in property valuation as they apply to real estate investing. This practical guide provides all the tools and tactics investors need to accurately gauge both the present and future value of properties. Whether they're buying or selling, investors must base their decisions on the fundamental principles of real estate finance. Failing to do so will definitely mean failing to make a profit. This handy guide doesn't offer long-winded theories on finance or quick schemes for making a bundle in real estate, but proven real-world knowledge every investor needs to feel secure that they've made a wise investment.

This is not another real estate book about how to creatively finance a purchase or get a nothing-down deal. Instead, author Steve Berges explains the basic theories of real estate finance, simplifies them for the average investor, and demonstrates how to use them in real-world situations. Using case studies and examples to illustrate these principles, Berges shows investors how to use traditional property valuation methodologies and how to understand such concepts as cash flow, rate of return, and return on investment. Investors will find everything they need to know about financial statements and schedules, investment performance measurements, the structure of financial instruments, and valuation techniques for any kind of property. Real estate is only a smart investment if you're a smart investor. In this book, Steve Berges walks readers step by step through all the financial analysis techniques needed to get the most out of their real estate investments.