While the Cap Rate calculation is the similar to the Cash-on-Cash calculation, you do not consider your buy-in. Instead of the initial investment, you consider the market value. Cap rate is a market-driven metric, measuring the attitude and behavior of the market. The Cap Rate is very helpful when comparing similar investment properties that you are interested in purchasing. Since it is financing agnostic, the cap rate measures an investment relative to the market, not your own personal financing capabilities. This allows for an at-a-glance comparison between properties, as well as monitoring a property over time. To calculate the cap rate, you would divide the net operating income by the market value.
Continue reading “MogulMind’s Data Points: Cap Rates (Part 3 of 4)”
CoC is used to determine the amount of profit you will make (yearly) based on the amount of cash you have invested in the property (not the amount borrowed). This is an important distinction (cash invested vs borrowed) as you are likely to be financing your properties, regardless of the investment type (flip, rental, etc).
Cash-on-Cash compares your net income to your initial investment.
Continue reading “MogulMind’s Data Points: Cash-on-Cash Return (Part 2 of 4)”
Greetings, and welcome to the first of a four part series. We get a lot of questions about the sources of our data, and how the calculations are made. These four posts hope to clear up the confusion, once and for all.
Continue reading “How MogulMind Gets Its Data & Why You Need It (Part 1 of 4)”
I’ve seen it over and over again. An investor falls in love with an investment property, the numbers don’t work and the seller won’t budge on price or go any lower but the investor has become attached to the idea of that property in their portfolio. Or maybe it’s because inventory is low and the investor is struggling to find their next project. Whatever the reason, don’t do it! Know when to walk away. This is where MogulMind comes to the rescue with its personalized advice on potential real estate investments. MogulMind will flat out tell you “this is not a good deal” and it will even explain why it’s not. Real estate investing is fun but not when you’re losing money. Buyers remorse is not fun. When it comes to your real estate investments, your decisions should be objective and data-driven, not based on emotion or instincts. MogulMind gives you the data. It is here to help you evaluate potential investment property purchases and make better investment decisions. It provides insight into real estate investments and helps to increase your ROI.
Continue reading “If It’s Not A Deal, It’s Not A Deal”
As real estate professionals, the CMA (Comparative Market Analysis) is the foundation of our investment property research. However, it doesn’t paint the entire picture for an investment property. The purchase price is one thing, but the ROI is what you’re after.
For most of us, determining the ROI means gathering property information, breaking out the spreadsheets and struggling with formulas. This process is time consuming and tedious to say the least. The excitement of finding a potential deal can easily get lost in the frustration of dealing with unnecessary complications.
Continue reading “MogulMind Picks Up Where The CMA Leaves Off”
Just a quick update from the MogulMind Development Team before the weekend: We have improved printability of investments and your portfolio. Use the print button from the investment’s drop-down menu (or hit Command/Ctrl+P, or File -> Print)…
Continue reading “Printing Improvements”
Greetings, Internet! We are the core MogulMind team, comprising software and real-estate professionals, operate out of San Diego, California, where the sun is always shining, and the houses are always expensive (haha!). We have recently released v1 of our product to the public, and would like to introduce our product (and ourselves) to our users. This blog will be a place to share industry tips to become a better real-estate investor, as well as updates on our product features, and what the future holds for MogulMind.
Continue reading “Welcome to the MogulMind Blog!”