Frequently Asked Questions
Deal Evaluation Tool™ (DET)

How is the DET different from other real estate investor software packages?

All other software packages are basically calculators. Some throw in a lot of unnecessary graphs and tables with tons of numbers and leave you to interpret them.
The DET was created by a real estate investor. It gives you the numbers you really need, and then INTERPRETS THEM and Tells YOU WHETHER IT’S A GOOD DEAL. It goes further and pinpoints where the deal could be improved actually gives you suggestions on how and what to improve.

You also can try out multiple exit strategies to see which one(s) work best for you. That creates a powerful negotiating tool for you.

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Is the DET Easy to Use?

It’s dead simple because it’s designed the way a real estate investor thinks. It’s organized is sheets that are logical parts of the deal such as purchasing, financing, carrying costs, selling, etc.

Just fill in the information that’s relevant to your deal. If you leave out a key value, the software will let you know.

And you only need to enter your information once. The software uses it wherever it’s needed.

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How does the DET evaluate my Risk?

The DET sets up criteria for low risk. This means that the deal is structured such that in the worst case scenario, the investment will not lose money.

The program takes the numbers in your deal and calculates key risk parameters such as Loan to Value, Equity to Cash invested, Maximum length of vacancy without negative cashflow, maximum expense increase without negative cashflow…

If any of these parameters are out of the safe range, they will be red flagged. You will know how much they are out of range, and the program will tell you what to do about them.

You can then use the “What-If” function to see how you can fix the problem.

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What is your customer support?

You get video tutorials, a no-fluff manual that tells you how to use every part of the program.

There is also a User’s virtual classroom where you can post questions and get answers, along with the latest versions of the software.

And if you’re really stumped, you can email your results and we’ll personally help you through it.

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Can I compare different strategies and see which will maximize my profit and minimize my risk?

This is the real power of the DET. And it’s really simple to use. The what if scenario panels are automatically filled in the numbers of your original deal. Just change any of the information and instantly see the effects on your bottom line. The software also clearly indicates which parameters are changed, so you can keep track of what you’re doing.

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Can I analyze subject to deals?

Absolutely yes. Using the DET for “subject to” deals will save you some stress, and financial nightmares by allowing you to avoid the lemons and negotiate your best deal on the good ones. You’ll never be stuck with negative cashflow.

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Can I calculate my profits and cashflow on a lease option, even if I have to evict a tenant and re-option?

The DET was designed not just to analyze the purchase, but to model events that occur after you own the property. You can actually see the financial consequences of evicting and tenant and re-renting or doing another lease-option.

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How about flips?

Don’t do one without using the DET. The DET will allow you to take into account ALL your costs—even those you might not think about, and determine before you buy, the actual selling price you need. If you can flip it for that price or better – go for it, if not – pass.

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I like to buy & hold – can I calculate my cashflow, profit, etc. even if I raise rents and account for inflation.

The ability of the DET to project the financial consequences of changes up to 10 years in the future is one of it’s great strengths. You can model almost anything from

Can the DET handle construction loans and cash outs?

The DET can handle any type of loan you can think of. For construction loans you can customize the draw schedule as well as the loan terms, and know exactly how much it’s going to cost. (You’ll still have to stay on top of your builder or contractor!).

You can also predict the effect of refinancing at anytime, and specify which loans will be paid off. Any net cash goes to your bottom line.

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Will the DET help me if I sell with owner financing?

Yes, there is a complete owner financing module that allows you to determine terms, escrow payments, charge points, pre-payment penalites and fees like any other lender, and calculate a balloon payment if necessary.

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What about Commercial and Mult-family property?

The DET will handle multi-family and commercial as easily as single family. You can enter rents for various types of units. You can account for additional income sources like laundry, cell towers, vending, etc.

The program will calculate your cap rate, cash on cash return and debt service ratio at purchase and sale of the property. That’s in addition to all the other parameters of profit, cashflow, return on investment, etc.

You can do complex extrapolations of your equity, and cashflow up to 10 years in the future.

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Will the DET calculate adjustable rate mortgages?

Yes, indeed. You can enter every detail of the note including annual and maximal interest caps, and when the rates change. You can also specify the prepayment penaly schedule if there is one.

And if you are taking over an adjustable rate mortgage from a seller, the program will also estimate your current balance and payment if it is not known.

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Can I do interest-only and deferred payment loans?

You can do any type of real estate loan there is. Just choose the option and you’ll have an interest only loan. Choose other options allow you to choose whether you’re paying points or interest at the origination date or when cashed out.

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Can I rehab, and refinance?

Yes, you can do all of those things. For rehab jobs, you can enter a high-level or detailed list of repairs. You can add adjustment factor for repairs you don’t know about until you start pulling up carpet or tearing down walls. And you can also customize the draw schedule to match your construction or hard money loan.

Refinancing is as simple as choosing that option along with which loans will be paid off by the refinancing. The software does all the rest.

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What about Renting and Lease Option Deals?

You can do either. For rentals, you can specify individual rents on differ types of units. You can make high-level or detailed expense estimates. And you can add additional income sources, such as laundry, vending machines, etc.

You can also project occupancy changes, rental increases, inflation rates, tax increases and many other parameters.

To do lease options, just put in your option fee in addition to your rental information. You can even see what will happen if you have to evict a tenant an re-option the property.

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How long can I project the financial consequences of my deal, including my cashflow and profit?

You can project the financial consequences of your deal year by year for up to 10 years in the future. After that predictions are too unreliable to be of any use.

This includes