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5 Metrics Every Real Estate Investor Needs to Know

By
Services for Real Estate Pros with RealData, Inc.

If you’re going to be serious about real estate investing, it’s imperative that you understand the numbers behind your deals.

That’s why I’ve always stressed my mantra, “First do the math, then do the deal.”

But maybe you’d just like to put a toe in the water first, and get a quick overview of some of the key metrics. For that, you can go to my "Insights" page and download my free ebook, "5 Metrics Every Real Estate Investor Needs to Know."

https://www.realdata.com/insights/

These five are important metrics, but certainly not the only ones. I go into greater depth about others elsewhere, in my books and video courses. But if you're an active investor, what other metrics do you rely on, and why?

#realestate #realestateinvesting #realestateinvestmentanalysis #realestateinvestors

Comments(1)

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Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

The picture you used- that is the approximate view from some of the windows in my office. We are on 39th st between 6th and 7th Ave. Most of the investors that approach me- are the casual "I have money in my pocket and think that investing in real estate might be a good idea" type of buyers. It's uncommon for them to know how to evaluate what might be a good investment. Every once in a while- I get buyers seeking higher cap rates and/or purchase through a 1031 exchange. A couple of times each year I get a professional real estate investor- looking for the types of deals that I don't usually come across- though to be fair to them- a lot of these investors might be better suited to work in the commercial side of the business, and they feel out the residential brokerage side from time to time to ensure they aren't missing out on anything. 

Apr 03, 2025 10:20 AM
Frank Gallinelli

I hope the view from your window is sunnier than the image I used -- and your investment prospects sunny as well. I can relate to your experience with your "might be a good idea" investors. When I started my software business more than 40 years ago I would often hear from folks who used the software to run the numbers but didn't know how to interpret the results. That's what got me re-focused onto investor education. I have to say it's a joy to see younger newbies in particular (like some of the college students I now deal with) really willing to dig into this material. Hope springs...

Apr 03, 2025 10:38 AM