In this section, we will cover real estate investment loans.  Topics will include: 1. Calculating Loan Payments, 2. Entering the loan assumptions into our investment model, and finally, 3. Leverage.  All three are essential elements of our investment model.  

In particular, the element of Leverage is of significant importance.  We will cover topics such as positive and negative leverage, how they are calculated, and the identification of optimum leverage.

We will examine loan constants, using Excel to calculate loan payments, and how to input the assumptions into our investment model.  In our model, we will be able to tweak the loan inputs to maximize the investor’s Return On Investment (ROI).