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The Importance of Diversified Investments

Even in a wide variety of economic conditions, you may expect a reliable growth in the value of your investments if they contain different types of holdings.

Experienced investors include positions in income-producing real estate in addition to the typical stocks and bonds. Others are hesitant to invest in this type of real estate because they have no experience in the field. NOI Academy's software helps to overcome this lack of experience and expertise.

The Importance of Estimating Net Operating Income Accurately

The concept of evaluating a property is simple. The accuracy of an analysis is in the detail. When I was teaching Real Estate Investment seminars during the eighties, I repeatedly made two statements. If the attendees forgot everything else presented in the seminar and retained these two concepts (and worked to develop them), I felt they had a good chance of staying out of trouble when acquiring property (i.e., not paying too much). The two statements:

l. You live or die by your NOI. (Of course, I am referring to your financial life.)
2. Only God knows the exact NOI of a Property (It is your job to have the second best NOI, and it had better be close.)

During the past twenty-eight years, I have been involved in the analyzation of many properties. I have participated in the purchase of properties having an aggregate value of more than 160 Million Dollars and have directed a property management company since 1980 whose portfolio has varied between 1,000 and 3,000 apartment units. I have never reached God's level of accuracy when chasing after an NOI, but I am getting better!

If you are using NOI Academy, you have the benefit of not making the hundreds of mistakes I have made over the years. Many mistakes can be made while ascertaining the NOI. We can never obtain the exact NOI of a property, but the mistakes can be kept small and sufficiently insignificant. Then, they will not get us into trouble.

The degree I obtained from the University of Nebraska was in Electrical Engineering, which makes me an analytical person and I am very much in love with "numbers", especially numbers associated with property analysis.

I have been a professional aviator for forty years, including a career in the USAF spanning twenty years and eighteen days. In the USAF, I flew airplanes for Uncle Sam. (A great job and I was paid to do it.) I even survived 105 combat missions in Viet Nam without a scratch! It is my experience as an aviator that makes me a believer in checklists. NOI Academy incorporates the disciplines of these two concepts: do the math and follow the checklist!

If you don't have the NOI Academy software programs, all you have to do is: 1) know every aspect of real estate investment, 2) apply each of those aspects without exception to the property's analysis, and 3) make absolutely no mathematical errors, including calculation of all the (possibly even concurrent) mortgage analyses. A piece of cake!

No Answers are Better than Wrong Answers

Certain conditions and situations must be considered when analyzing the potential of return (and risk) for an investment property. An investor must realize when information is missing that is critical to the evaluation of property. Experienced investors hear virtual "warning bells" when pieces of the puzzle are not available. Those new to the business, however, may not know exactly all the information needed to make investment decisions. (Contrary to those bumper stickers on the Real Estate agents' cars, it's not "location, location, location" only).

Training, via seminars like Jack Haley gave in the late Eighties, helps fill this void of knowledge. Software, if carefully designed by someone with extensive Real Estate Investment experience, can also provide essential details. NOI Academy, to address this, provides an exclusive "checklist" feature that insures crucial criteria of a property are considered.

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