Book Review: What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures

This book review is part of a series that covers the topic of Real Estate. Real estate means ownership of land plus anything permanently fixed to it, including buildings and other improvements. Real estate is a popular form of investment. Trump University is the Official Guide to Real Estate.

What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, by Frank Gallinelli, is a valuable resource for people interested in Real Estate, and it is available through Amazon.com and Barnes & Noble.

Book Description

Formulas that make the difference between making profits and losing equity

The only way to win the real estate investing game is by mastering the numbers. This revised and updated edition of the popular reference shows how to target the best investments in the present market. It answers all your real estate questions, and provides new discussions of capital accumulation and internal rate of return. This book’s basic formulas will help you measure critical aspects of real estate investments, including

Discounted Cash Flow
Net Present Value
Capitalization Rate
Cash-on-Cash Return
Net Operating Income
Internal Rate of Return
Profitability Index
Return on Equity

From the Author
Can a book filled with numbers possibly be exciting? If you’re truly interested in real estate investing then you must first realize that investing in income properties is all about the numbers. It’s about discounted cash flow and rates of return and net operating income and cap rates. If you understand how these and other key concepts work, then you’re on your way to success – and that’s exciting.
I also believe you'll find the presentation of this material entertaining. I sought to write this in a way that would make it accessible to beginners and professionals alike.

I present more than three dozen key concepts and calculations. The book is peppered with "Rules of Thumb" that you can use as benchmarks when you evaluate potential investment properties. I also provide numerous examples and sample problems that you can use to check your understanding. As you progress you’ll learn how to read a property’s vital signs and how to put financial concepts to work for successful investing in real estate.

As important as these financial measures are, some can be tedious to perform manually. For those I show you how to use simple spreadsheet models to accomplish those tasks. I also provide you with a link to a special website we created where readers of the book can download many of these models as well as other valuable tools.

I hope that you'll find many good ideas here and that you'll use what you learn to help you make solid investment choices.