Appendix

On the following pages you will find excerpts from two tables that we have used in the text.

The first, “Annual Present Value Factors,” is discussed in Part II, Calculation 16 (“Discounted Cash Flow”) and Calculation 17 (“Net Present Value”). The second table, “Monthly Mortgage Payment per $1—Mortgage Constant,” is covered in Part II, Calculation 28 (“Mortgage Payment/Mortgage Constant”) and Calculation 29 (“Principal Balance/Balloon Payment”). You will also see this table used in Part 1, Chapter 3, “How the ‘Time Value of Money’ Should Influence Your Real Estate Investing Decisions.”

Lengthy tables filled with tiny numbers can be daunting; even worse, they may remind you of the instruction booklet for your tax return. We’ve included only a few pages from each table here, just enough to make it possible for you to follow the examples in the text.

You can download longer versions of these tables, as well as a number of other useful tools, from RealData’s website. Just go to http://www.realdata.com/book. There you will find a page with links to a free real estate calculator program, several Microsoft Excel templates shown in this book, and a number of other useful tools.