Some people are old fashioned, and that term isn’t being used in a negative way. Sometimes what works, works, and when trying to reinvent the wheel results in a mash of inconsistency, nothing but new-fangled versions of the original blueprint are created, and are usually lacking. Improvements on an original model are always good, but marketing plays a big role in what is necessary and what is just fluff when it comes to real estate investment software. A smallish portion of real estate investors today still rely on Microsoft Excel spreadsheets to determine their ROI, and still consider it to be a tried and true way of manually crunching numbers, creating a strong portfolio.

However, it takes someone incredibly proficient in math, exceptionally organized and someone who is extremely familiar with financial analysis models and equations to accurately piece together the correct information in accordance with an accurate prediction of an ROI possibility for real estate investing.

One software option that has ear mocks of the spreadsheet mentality but has been given a facelift is the ROI Forecaster. The ROI Forecaster has the ability to take “1,000 combinations of a given investment scenario over eight different variables simultaneously to provide you with a full understanding of the likelihood of achieving a given level of financial performance for the investment being considered.” It claims that it is easy to use despite the complicated numbers it is able to produce.

This product offered by Real Estate Informatics is called ROI forecaster. This is a software program that includes all types of investor’s needs, and is self described as a tool that will assist in making any investment easier to diffuse and dissect whether it is an “investment is a single family home, a multi-family unit, an apartment building, an industrial property or an office building.”

Most real estate investment programs say that they can offer anywhere from 5-20 year analysis of operating data (APOD), for an investor to generate an investment conclusion from. But the ROI Forecaster says that this is simply not a broad enough perspective. The ROI Forecaster offers the investor the ability to collect investment analysis data over the course of X many years, and can invariably calculate what a “lifetime” APOD may look like for an investment property. While this may or may not be of appeal to those realism investors, who take into account that the market values are too volatile to compartmentalize, may find the ROI Forecaster intriguing for its lofty self-proclaimed proclamations, if not anything else.

Another thing to consider when investing in any real estate software program is how many different types of software they offer the consumer. The reason this is important to take into consideration is that sometimes they will structure their investment software like a pyramid. Meaning that after purchase of the first “level” of software, you may find yourself forced to purchase the next “level” up, since the software you initially purchased may be limited.

Whether or not that is the case with ROI Forecaster is a matter of debate and can only be determined by research and or user testimonials. What isn’t of debate is that they do break down their software into “levels” and that can be a cautionary sign that their programs may or may not be “all-inclusive”. The pricing for the ROI Forecaster breaks down as follow: Advanced Risk Analysis, $229.95, Professional Edition, $179.95, Standard Edition, $129.95.

Comparing and contrasting various real estate investment software programs will help you decide what program is the best deal for your money. The market is saturated with various programs all promising virtually the same things. However, beside the necessary equation and presentational data that all investors need to accurately calculate an investment strategy and to appear professional to clients, there are other options to consider.

For starters, the price isn’t the only instigator between a good investment software program and a mediocre one. When it comes to rental software, the content of the software, its user friendliness and the design precision to meet the individual needs of the investor all need to be considerably weighed before the purchase.

For instance, let’s take a look at Rentalsoftware.com, and what they offer in the realm of investment software. First, let’s focus on one of their most popular investment software programs the Landlord’s Cash Flow Analyzer. First of all, depending upon whether you hope to be in rehabbing, wholesaling, commercial or residential real estate with most real estate investment software you have to decide what is most important for your business to progress. Accuracy in investment estimations is a must, no matter what type of investments you are going to pursue, however this isn’t necessary for the Landlord’s Cash Flow Analyzer and here’s why.

One of the best features of the Landlord’s Cash Flow Analyzer software program is that it doesn’t cater to one type of investor over another. Some software programs only offer specific investment software for residential, commercial, rental etc, separately. This type of marketing will, in the end, drain more money from you, unless you know you will never have a need for a combination of investment strategies.

The Landlord’s Cash Flow Analyzer boasts the following features: Presentational reports, analysis of 1-1000 rental unites per property (20 year analysis), property value determination, rent determination, vacancy rates annually, what-if calculations, management fee option, cash flow forecasting, evaluate ROR, COC, IRR and MIRR, Currency Conversion, refinancing, annual hold or sell decision assistance, alternative investment comparison, calculate all of the important financial ratios (debt coverage ratio, debt to equity ratio, gross rent multiplier monthly and annually, net operating income, net presents value, debt service ratio, capitalization rates, loan to value ration, etc.)

Usually, that isn’t the case and an affordable all-inclusive software program is a cheaper way to go. Also it is compatible with a PC and some Mac’s however, it isn’t compatible with the “latest” Mac, as they refer to it. So since it isn’t compatible with VBA code, be sure that your Mac computer is able to translate VBA code before purchase or it will just be money down the drain.

The price for this program is $79.95. They also offer other software program’s that specifically meet the needs of “flippers” and “rehabbers”, that program runs for $149.90 and is called Flipper’s and Rehabber’s Software. There are multiple packages where you can mix and match materials. Their cash flow analysis book ($115) can be bought in a package, as well as they offer an E-Guide to their programs.

Real Data is another option for Real Estate Investment Software. They have a particular software program called Real Estate Investment Analysis (REIA), which they self-described as being “A product line (that) produces comprehensive projections of income, expenses, resale, taxes and rates of return for income-producing real estate. Use REIA to create compelling presentations for clients, partners and lenders. Automatically calculates all key investment measures including IRR, MIRR, cash-on-cash, and more.” There are 4 different editions.

The first edition listed is the Standard. This is a software tool that can be used by both the residential and commercial investor. So if you are planning to split your time between two different types of investment properties this may be a good option for you. It has up to 20-year “after-tax” analysis and runs for $495.

The next option if the International edition. This is for those buying properties outside of the United States that may need to switch currencies on normal basis and it offers an easy data field in which you can switch to metric measurement. It also includes Canadian semi-annual interest calculation. This runs for $397.

Another tool is the Lite edition, this is for those that don’t need to use the Standard edition for the commercial real estate investing feature and are just planning on focusing on residential investments. It offers a 10-year before and after tax analysis, as opposed to the 20-year calculation offered in the Standard edition. This program costs $295.

The last software program that they offer through the REIA is the Ultra-Lite. Advertised as quick and easy, this is a 10-year pre tax analysis program that will help a novice investor and first time residential property owners begin to formulate an accurate concept of what t investing in real estate really calculates out to be. It is the cheapest option at $99 dollars and is offered as eligible for an upgrade to more intensive programs as your education of real estate investing continues.

Another nice advantage to using Real Data as your software provider is that if you use a Mac, Real Data offers a Macintosh version of their Real Estate Investment Analysis program. It also offers a unique program that caters to those investors that are interested in evaluating what a section 1031 tax-deferred exchange can offer. This can accommodate as many as four investors at once and assist those that wish to use the typical, “three-legged” exchange. This is priced at $195.

Real Data Software also offers “bundles”, which enables an investor to choose a software program and take an e-course, or to customize their own program package to best suit their needs. The savings can be as much as $592 dollars, depending on how many programs you bundle together.

Here is one testimonial of Real Data, “Several years ago I reviewed a number of financial analysis programs in an attempt to find one with the flexibility to do a simple analysis quickly, yet perform a complete analysis that was suitable for presentation to a client. As a result of my review I purchased REIA 9. Over the years I have upgraded to REIA 11 and am currently using REIA 12. It is with pleasure that I can report that your program is even more flexible than when I first started using it. Not only has it been an extremely useful tool for me but produces a complete analysis report that is requested by clients and lending institutions alike.”

Real estate investing is a complicated layering of multiple processes that includes estimating, evaluating, applying and reaping. With volatile market potential, and the fickleness of the unsteady climate of the housing market, the success of an investment can be boiled down to the investors ability to properly estimate the most low risk investment possible with the highest rate of return. Real estate investing is a numbers game, and because of this, contains numerous elements of chance and timing that can affect the outcome of an investment.

However, there are certain numbers to “crunch” that will aid you in making a better informed investment choice. The math involved in real estate investing, ranges from basic fractions, average and ratio equations to formulaic financial models and highly complicated return scenarios. Whether you are a math whiz or not, this imperative data can be easily accessed through one of the numerous real estate investment software programs there are out there.

The closer you can get to an accurate estimate of an investment cost and return, the better. Alleviating some common concerns, especially for those first time real estate investment buyers, by doing some research and plugging in the right numbers will be extremely beneficial in developing sound investment strategies.

The affordability of a software program should always be of concern for an investor, since everything he purchases towards developing his portfolio will affect his bottom-line and if an investor can get a premiere product for less, that only helps the return on the investment in the long run. One software program called Advantage Software is advertised at $97.95. The popular product that they sell, which they say is helpful for all types of investors, is called Target 3.01.

The Advantage Target 3.01 program is only downloadable for Windows 2000, Windows XP and Vista, so be doubly sure that your computer is compatible with this format before purchasing it. This product specializes in the following sales data analysis information: Cash Flow, after-tax Sales Proceeds, after-tax Future Wealth, after-tax COC Return, after-tax IRR and after-tax MIRR. This is a helpful tool, since income tax can has a large involvement in the determination of your bottom-line.

One testimonial from their site says this, “Your software is fantastic! I have been using it for about 4 years now, for all my real estate investment decisions. You have saved me hundreds of thousands of dollars! Thank you so much.” Remember, one important thing to consider when looking into investing in any real estate investment software is to ask around.

If you have a mentor, or a well-known real estate investor in or around your circle of influence that can point you in the direction of a software program that they would consider worthwhile, that is always a good reference to go by. Also, be sure that whatever your specific needs may be for using investment software is of supreme concern in whatever program you choose. Most of the software programs out there contain a lot of analysis options, but a lot of them may not be applicable to your needs.

Let’s explore another real estate investment software program that a lot of investors are probably familiar with, and that is Argus. Argus is a very well organized “product matrix” of extremely specialized software programs that include: Asset Manager, Development, Development Budget, Enterprise, Leasing Software, CRM software, Property Management and Property Budget Software etc. In addition to the programs they have products a called “solutions” which is a tab that will point you in the right direction, for which software program you may need the most.

Argus, despite its slick, clean and almost medicinal approach to real estate investment software programs has a price tag to match. The products have time line tags on them that do span over a matter of years, the most common is three years, but nothing is under $3,000 for those packages. It also seems that for beginners in the real estate investment world Argus, while informative and intensive, may not be as user friendly for beginning real estate investors, or anyone who isn’t proficient in the language of their program.

Their website itself is quite a maze of information albeit eventually helpful, more often that not it’s a little intimidating and confusing. Just trying to get down to which program best suits you best and deciding which packages you need, can be cumbersome. A plus for Argus, is that there isn’t a lack of products available. There is an entire network of mixing and matching software options so that you can “customize” exactly what your needs for the program may be.

Between the extended price protection plans, standard price protections plans, and basic price protection plans in addition to single user options or multiple user options you can begin to weed out which program won’t work for you. The user option is helpful for those that run their own real estate investment firms and want to purchase a software program that will enable the entire office to be using the same technology. Argus even offers study guides to help you decipher your new “helpful tools,” although the fact that they even offer such a product is a sign that this program isn’t for the faint of heart and especially not for those that just found out how a spreadsheet works.

If you are a whiz at software programs and if you are extremely familiar with commercial, multifamily, or residential real estate investing this type of software may fall right in line with your need for speed and efficiency. Keep in mind the price, the content, and the “user friendly” capabilities when purchasing any software program. For illustrations sake, if all that you need is a reliable Honda to get you back and forth in an efficient and reliable way, there is no need to spring for the Jaguar unless you are desire that certain type of speed that is derived from an intricately foreign network of data.

Pro APOD real estate investment software is like the next software program we will explore, REI Wise real estate investment software, in that it has ambidextrous abilities to cater to the residential, commercial and rental investor. They advertise that they are affordable, stating on their home page that their desktop products range from $59-$499, which is quite a range!

One significant difference between Pro APOD and REI Wise that is noticeable right off the bat, is that REI Wise requires a monthly fee for their online programs. The desktop programs are offered separately. This is clearly stated along with the purchase price on their site. Their online software has the advantage of being able to access their investment software data from “any internet connection”. They claim that this is efficient and convenient for those investors that are on the road and that have extensive travel as a part of their job description.

This type of hosted database materials is called “cloud” data. This means that a site hosts all of your data instead of your personal or work laptop or PC, which is available 24 hours a day for you to access. REI Wise says that it is “backed up on secure servers”, and hopefully this is the case. The potential problem with “cloud” database networks is that there is the potential for intermittent crashes, and if the company is small or a start up company there is also the slight chance that they could go out of business and take all of your data down with them. However this may or may not be the case for REI Wise, a little bit of research into their reliability as a hosting network would sew up that question.

They offer products for the following investor types: commercial and multi-family real estate professionals, multi-family and residential real estate professionals, individual commercial and multi-family investors, individual multi-family and residential investors, as well as the “complete novice” commercial, multi-family, residential or “all of the above” investor.

The Prices for each of these software programs are dependent upon the level of expertise and what your needs may be. For the commercial investor they describe their product this way, “With REI Wise Commercial you can produce a solid financial analysis of your commercial investment with fully branded, truly superior marketing materials”. The commercial options range from the WisePro, which is $59.00 for the desktop version and $25/month for the online program subscription fee, which equals out to be $300 year for the service.

If you only need the residential program, they offer the REI Wise Entrepreneur Program, which includes the following options, “Full 20 Year Projection for Financial Analysis, Full Proposal Capabilities, Executive Summary Report, True Pro-Forma Reports, Interactive Sensitivity Analysis”. This program is $149 for the desktop version and $15/month for the residential only online program, which is $180 a year.

Here is one review from a REI User, “I purchased a subscription to REI Wise Commercial online and have been very pleased with the product. It is much more user-friendly and easier to use than other products such as Argus and PlanEASe®. From the day I purchased the subscription, I was able to analyze several properties and immediately get the full value of the product.”

Ask any successful real estate investor what’s most important when you are becoming a real estate investor for the first time, and they will likely respond with “get educated”, and “do the math”. You can not excel in an industry that is tightly wrapped around a fluctuating market, without understanding what your up against and how to best safeguard yourself against common mistakes. Once you find a mentor and can begin investigating investment strategies with them, it is best to try and simultaneously invest in a real estate investment software program and familiarize yourself with different financial analysis models available to you by crunching the numbers yourself.

The market is saturated with these software programs, so it’s difficult to determine which will yield the most “bang for your buck”. Ironically investing in real estate investing software isn’t unlike searching for the perfect investment opportunity itself. There is a lot of comparative analysis to consider when choosing a program, as well as the cost effectiveness of the program you choose. There are affordable and worthwhile options, but it is mostly dependent upon how advanced your financial analysis education is to begin with, and how much you want to spend on furthering that knowledge.

ProAPOD is one of the leading software programs of its kind. It has beneficial data for brokers, agents, investors, consultants, and appraisers for the real estate community. The software has built in forms with fields where you can input your data. The calculation of even some of the most complicated rates of return or property valuation formulas are at your fingertips. It also allows for you to develop presentations for any and all of your listing needs.

Whether you are a marketer, investor, lender, of in charge of the investment decisions you can use the smart forms that ProAPOD offers and compute rates like a professional. The newest version of this software is ProAPOD 10.0. It is advertised as their most comprehensive program. Other options that are included: before and after tax cash flow, loss and benefits of taxes, recapture tax, capital gains, real estate depreciation for both residential an commercial real estate. This version can be fairly complex, so you may want to be familiar with the ropes of real estate investing before you purchase this program.

Pro APOD does offer a software program for those who are just beginning in the real estate investing as well. This is the Pro APod 4.0 real estate program. It provides a new investor with the most essential and beneficial data he or she may need for initial financial analysis. This software includes the following investment information: annual investment summaries, proforma income statements, monthly cash flow, down payment sensitivity, acquisitions, cover sheets, monthly amortizations, and annual amortizations.          The basic goal of this “beginners” software program is to determine what your profitability, cash flow, and rate of return will be.  The Pro APOD 4.0 yields extremely crucial data that can make or break you investment success.