Income Property Values

Software: Income Property Values

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The concept recognizes that the buyer of an income property is always at greater risk than the co-investor, the lender. Therefore, the buyer is always entitled to a higher annual yield than the lender. The process provides a very simple technique for determining how much more annual yield the buyer should earn over that of the lender by indexing that yield to the lender's yield (his interest rate).

Then it uses a patent pending math process that will determine the maximum price that will generate that risk-assessed yield.

For the first time ever, the direct effects of yield and risk, not only the property data, determine the maximum price to pay for any income property. In effect, it eliminates the common use of statistical approximations of cap rate, discount rate and gross rent multipliers.