By . Tracking Spreadsheet. At Tuesday, May 04th 2021, 03:59:47 AM.
Since this is a residential rental apartment building it makes sense to include rental income in your real estate spreadsheet. Thats obvious. What isnt so obvious are things like interest on tenant deposits, subsidies, tax refunds, etc. When youre building the spreadsheet you need to estimate when those revenues will arrive, and that relates to the number of tenants, the rental rates you charge, how long the lease term is for each tenant, etc. You also need to assume some late payments, evictions, and vacant units. If you havent invested in the area before this can be a challenge. You can gather data on that by speaking with local real estate agents, lenders, and tax agencies, or subscribe to an industry database that covers the local area. In most locations you also need to consider taxes. Are these charged up-front? As part of the mortgage loan payments? How frequent are they? When do they actually need to be paid? Are there any accounting costs? Can you use any tax credits or breaks? How do you calculate depreciation if that is a tax deduction? Taxes can be quite complex and you need them in your calculations or your investment value estimates will be incorrect.
Do you like to save time? Do you like to have your phone ringing with customers calling? Of course, who doesnt want these things? Just as you have to spend money in order to make money. You need to spend time to learn to save time. Spend a little time to learn how to use Excel and you will save time and have more customers. Excel can be an unpaid personal assistant. Some of the things that I use the Excel Spreadsheet for are to calculate square footages, lineal footages and total them instantly without errors. Even if the list is 25 items long, it will calculate the totals, without error in seconds. I use it for calculating square footages from the length and width of the room. I can take a list of rooms and add their dimensions, hit enter and the calculations are done for ceiling square footage, wall square footages, moldings, including baseboards, crown and chair railing. I can even make an additional factor for high time difficulty, or any other factor that can influence the job.
When knowing your goals you need to know them in clear specific terms. This means knowing exact amounts, colors, makes and models, etc of the goals you are striving for. Know them to the penny or they will be more difficult to achieve. It is a lot easier to find my friends house with a map if I know the actual address of the house and now just a street, city or state. The more specific the more easily I can get to that final destination. Break your goals into small bite size pieces Once you have a clear understanding of exactly what your goals are, the size and difficulty of them can become overwhelming. How will I ever make $10,000 in a month when I have never made more than $4000 in any one month in my life? How can I afford that $60,000 car when I can barely pay the payments on my piece of junk car I have now?