Salem, OR (PRWEB) October 27, 2010
ProAPOD, the real estate investment software that took the real estate community by storm in 2000, has just confirmed that it does compute the financial management rate of return (or FMRR) in addition to other rental property analysis returns.
FMRR was instituted by Certified Commercial Investment Member (CCIM) because the institute considers it a better way for investors to compare investments rather than the internal rate of return. As the Certified Commercial Investment Member Course Reference Manuals puts it, the return better allows investors to make investment "comparisons on a par basis (apples-to-apples)."
Somewhat like the modified internal rate of return (or MIRR) calculation provided in Microsoft Excel in that both compute the internal rate of return on a series of cash flows, there are significant differences.
Each method discount negative cash flows (outflows) back to year 0 (the investment year) and compound positive cash flows (inflows) forward to the year of the final cash flow. MIRR, however, simply discounts every negative cash flow back and compounds every positive cash flow forward. Whereas the financial management rate of return, where possible, first removes (or adjusts) all future outflows by using prior inflows. The idea being that any future outflow can be offset by any previous year inflow.
"It's a complex computation that requires a financial calculator," ProAPOD developer James Kobzeff says. "But even with a financial calculator, arriving at the financial management rate of return proves cumbersome and time consuming because hand-held calculators require a number of steps and entries that quite honestly get very confusing."
"But FMRR is a worthy return that should be of interest to real estate investors and other real estate professionals," Kobzeff adds. "So as an alternative to using a hand-held calculator to make the computation, which is difficult and slow, I provide it in ProAPOD real estate investment software so it can be calculated easily and in virtual seconds."
"Of course I could have simply gone the course of my competitors and used the MIRR function because it's built-in to Excel and easy to implement, but I'm glad that I opted on the side of CCIM and programmed FMRR into my software."
You will find the FMRR calculation included in both ProAPOD Executive 10 and ProAPOD Mortgage Calculator Software.
ProAPOD Executive 10 is an easy-to-use rental property analysis software solution specially-designed so agents and investors can quickly and concisely evaluate income property cash flows, rates of return, and profitability with full consideration for tax shelter. It creates twenty-five dynamic analysis and marketing presentations and is priced at just $279.95.
ProAPOD Mortgage Calculator is a software solution that makes it easy to compute hundreds of mortgage amortizations, time value of money such as present and future values, as well as other cash flow returns like net present value and internal rate of return. It also creates four printable reports and is very affordable at $29.95.
For additional information on these and other innovative real estate investing software solutions offered by ProAPOD contact James Kobzeff or visit http://www.proapod.com. ProAPOD is available for immediate download and runs as an application for Excel under Windows as well as Mac running the appropriate Microsoft Office software. Licensed users get two permanent downloads along with free updates and technical support for one year.
ProAPOD is a privately held software company located in Salem, Oregon. James R Kobzeff is the founder and owner and has over thirty years of experience as a real estate agent, broker, and investor.
James Kobzeff, Owner
ProAPOD Real Estate Investment Software