Income Property Valuation - Economic Valuation System
Please note: Web site registration (free) and appropriate due diligence are required to utilize the Economic Valuation System (EVS) for income property valuation. We recommend previewing the EVS sections and making note of additional data needed.
The Economic Valuation System (EVS) is a pro-active due diligence checklist for income property valuation to help in determining the potential of the purchase or sale of income producing properties to generate a profit. It is comprised of seven ingredients that are key to income property valuation: Area, Location, Structural Integrity, Amenities, Capitalization Rate, Debt and Leverage. By scoring the subject property in each category, an investor can make a more informed decision regarding the future value of a real estate investment and the income producing potential of the property.
Each criterion or sequence is part of a cumulative total. There are 122 criteria used in the income property valuation process. The user will learn which questions are important and the sequence in which you should ask them. If one of the seven key factors of income property valuation fails the test, it is a signal to walk away from the deal or to readjust to accommodate the specific failures.
The EVS is a universal income property valuation system. It works for all real estate purchases: single family homes, condominiums, duplexes, apartment houses, shopping centers, office buildings, and most other types of income property. It will apply to a $200,000 private home or a $100 million apartment building. Because the EVS is based on timeless fundamentals, it retains its integrity through economic cycles and tax law changes.
The EVS will provide income property valuation in all societies that use money as a medium of exchange and do not have unusually restrictive laws. It can be used in Fairbanks, Tokyo, Paris, Bombay, New York City, or a small town in Texas. Any individual residing in a capitalistic society will by default be involved in real estate. The EVS gives the investor the capability of looking at income producing real estate intelligently to judge its value. For a more detailed review of EVS and and the criteria that form the system, please see our essay on income property valuation: Due Diligence 101 for Real Estate Investors - The Economic Valuation System.
Note: A one-time free registration is required to access EVS. When you activate EVS, you will be prompted to log in or register, then directed to your income property valuation.
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