Table Of ContentTHE	REAL	ESTATE	MATH
HANDBOOK
Simplified	Solutions	for	the	Real
Estate	Investor
Jamaine	Burrell
This	Atlantic	Publishing	eBook	was	professionally	written,	edited,	fact	checked,	proofed	and	designed.
Over	the	years	our	books	have	won	dozens	of	book	awards	for	content,	cover	design	and	interior	design
including	the	prestigious	Benjamin	Franklin	award	for	excellence	in	publishing.	We	are	proud	of	the	high
quality	of	our	books	and	hope	you	will	enjoy	this	eBook	version,	which	is	the	same	content	as	the	print
version.
THE	REAL	ESTATE	MATH	HANDBOOK:	SIMPLIFIED	SOLUTIONS	FOR	THE	REAL	ESTATE
INVESTOR
Copyright	©	2007	by	Atlantic	Publishing	Group,	Inc.
1405	SW	6th	Ave.	•	Ocala,	Florida	34471	•	800-814-1132	•	352-622-1875–Fax
Web	site:	www.atlantic-pub.com	•	E-mail:	[email protected]
SAN	Number:	268-1250
No	part	of	this	publication	may	be	reproduced,	stored	in	a	retrieval	system,	or	transmitted	in	any
form	or	by	any	means,	electronic,	mechanical,	photocopying,	recording,	scanning,	or	otherwise,
except	as	permitted	under	Section	107	or	108	of	the	1976	United	States	Copyright	Act,	without
the	prior	written	permission	of	the	Publisher.	Requests	to	the	Publisher	for	permission	should	be
sent	to	Atlantic	Publishing	Group,	Inc.,	1405	SW	6th	Ave.,	Ocala,	Florida	34471.
ISBN-13:	978-0-910627-07-8	ISBN-10:	0910627-07-X
Burrell,	Jamaine,	1958—
The	real	estate	math	handbook	:	simplified	solutions	for	the	real	estate	investor	/	by	Jamaine
Burrell.
p.	cm.
ISBN-13:	978-0-910627-07-8	(alk.	paper)
ISBN-10:	0910627-07-X	(alk.	paper)
1.	Real	estate	investment--Mathematics.	2.	Investments--Mathematics.	3.	Business	mathematics.
I.	Title.
HD1382.5.B86	2007
332.63’2401513--dc22
2007028926
LIMIT	OF	LIABILITY/DISCLAIMER	OF	WARRANTY:	The	publisher	and	the	author	make	no
representations	or	warranties	with	respect	to	the	accuracy	or	completeness	of	the	contents	of	this
work	and	specifically	disclaim	all	warranties,	including	without	limitation	warranties	of	fitness	for	a
particular	purpose.	No	warranty	may	be	created	or	extended	by	sales	or	promotional	materials.
The	advice	and	strategies	contained	herein	may	not	be	suitable	for	every	situation.	This	work	is
sold	with	the	understanding	that	the	publisher	is	not	engaged	in	rendering	legal,	accounting,	or
other	professional	services.	If	professional	assistance	is	required,	the	services	of	a	competent
professional	should	be	sought.	Neither	the	publisher	nor	the	author	shall	be	liable	for	damages
arising	herefrom.	The	fact	that	an	organization	or	Web	site	is	referred	to	in	this	work	as	a	citation
and/or	a	potential	source	of	further	information	does	not	mean	that	the	author	or	the	publisher
endorses	the	information	the	organization	or	Web	site	may	provide	or	recommendations	it	may
make.	Further,	readers	should	be	aware	that	Internet	Web	sites	listed	in	this	work	may	have
changed	or	disappeared	between	when	this	work	was	written	and	when	it	is	read.
A	few	years	back	we	lost	our	beloved	pet	dog	Bear,	who	was	not	only	our	best	and	dearest	friend	but	also	the	“Vice	President	of
Sunshine”	here	at	Atlantic	Publishing.	He	did	not	receive	a	salary	but	worked	tirelessly	24	hours	a	day	to	please	his	parents.
Bear	was	a	rescue	dog	who	turned	around	and	showered	myself,	my	wife,	Sherri,	his	grandparents	Jean,	Bob,	and	Nancy,	and	every
person	and	animal	he	met	(well,	maybe	not	rabbits)	with	friendship	and	love.	He	made	a	lot	of	people	smile	every	day.
We	wanted	you	to	know	a	portion	of	the	profits	of	this	book	will	be	donated	in	Bear’s	memory	to	local	animal	shelters,	parks,
conservation	organizations,	and	other	individuals	and	nonprofit	organizations	in	need	of	assistance.
–	Douglas	and	Sherri	Brown
PS:	We	have	since	adopted	two	more	rescue	dogs:	first	Scout,	and	the	following	year,	Ginger.	They	were	both	mixed	golden	retrievers
who	needed	a	home.
Want	to	help	animals	and	the	world?	Here	are	a	dozen	easy	suggestions	you	and	your	family	can	implement	today:
• Adopt	and	rescue	a	pet	from	a	local	shelter.
• Support	local	and	no-kill	animal	shelters.
• Plant	a	tree	to	honor	someone	you	love.
• Be	a	developer	—	put	up	some	birdhouses.
• Buy	live,	potted	Christmas	trees	and	replant	them.
• Make	sure	you	spend	time	with	your	animals	each	day.
• Save	natural	resources	by	recycling	and	buying	recycled	products.
• Drink	tap	water,	or	filter	your	own	water	at	home.
• Whenever	possible,	limit	your	use	of	or	do	not	use	pesticides.
• If	you	eat	seafood,	make	sustainable	choices.
• Support	your	local	farmers	market.
• Get	outside.	Visit	a	park,	volunteer,	walk	your	dog,	or	ride	your	bike.
Five	years	ago,	Atlantic	Publishing	signed	the	Green	Press	Initiative.	These	guidelines	promote	environmentally	friendly	practices,
such	as	using	recycled	stock	and	vegetable-based	inks,	avoiding	waste,	choosing	energy-efficient	resources,	and	promoting	a	no-
pulping	policy.	We	now	use	100-percent	recycled	stock	on	all	our	books.	The	results:	in	one	year,	switching	to	post-consumer	recycled
stock	saved	24	mature	trees,	5,000	gallons	of	water,	the	equivalent	of	the	total	energy	used	for	one	home	in	a	year,	and	the	equivalent
of	the	greenhouse	gases	from	one	car	driven	for	a	year.
Foreword
Ken	Lee
The	Real	Estate	Math	Handbook,	which	can	be	used	for	real	estate,	finance,	and
investing,	may	call	on	your	left	brain	to	apply	a	bit	of	old-fashioned	sweat
equity.	But	this	is	not	a	doctorate-level	math	book	that	will	enable	you	to
calculate	the	velocity	of	your	spinning	head.	This	book	is	quite	pragmatic.	With
the	knowledge	obtained	from	all	or	even	part	of	this	book,	readers	can	rest
assured	they	have	invested	in	sound	principles	and	old-fashioned,	practical	math
know-how.
Consumer	interest	in	real	estate,	finance,	and	investing	continues	to	grow	due	in
large	part	to	a	general	level	of	past	success	by	many	consumers	and	a	concern
about	what	lies	ahead.	For	some	who	played	the	game	with	blind	aggression,
fortunes	were	created	by	simply	participating	in	past	real	estate	and	stock	market
gold	rushes.
That	is	all	about	to	change	…	again.	As	newer,	tougher	markets	cast	aside	blind
participants,	savvy	investors	gear	up	for	pending	opportunities	by	embracing	a
foundation	of	knowledge.	The	practiced	investor	understands	that	knowledge	is
an	investment	that	will	pay	handsomely	while	carrying	little	risk.	Yet	seeking
the	right	knowledge	requires	care.	There	is	plenty	of	sound	information
available,	but	it	is	often	mixed	with	instant	remedies	for	our	millionaire	status
shortfall,	as	hawked	by	a	plethora	of	gold	rush	information	vendors.
If	you	are	seeking	a	spiritual	swami	to	give	you	permission	to	attract	multiple
streams	of	income,	a	life	coach	to	redefine	the	meaning	of	wealth,	or	an
infomercial	guru	to	help	flip	your	investments	like	hotcakes,	you	will	find	one.
But	not	on	planet	Earth.	Here,	maybe	all	you	need	or	want	is	a	little	edge	in
knowledge,	influence,	and	enlightenment	as	markets	tighten.	The	Real	Estate
Math	Handbook	is	a	well-rounded	resource	book	based	on	truths,	not
philosophies	–	that	is	math.	The	book	is	written	in	layers	and	organized	well
enough	to	be	an	accompaniment	to	a	college	level	course	in	real	estate	or
investing.	It	is	also	a	fabulous	reference	book	and	an	essential	tool	for	one’s
ongoing	journey	of	financial	understanding.
Ken	Lee	is	a	top-producing	real	estate	broker	in	Southern	California,	real	estate
investor,	and	small	business	coach.	He	holds	a	Bachelor	of	Science	degree	in
Materials	Engineering	from	the	University	of	Pennsylvania	and	an	MBA	from
Carnegie	Mellon	University.
Contact	Information:
Ken	Lee
661-644-3967
[email protected]
Table	of	Contents
CONTENTS
Introduction
Chapter	1:	Basic	Mathematics
Chapter	2:	Rate	of	Interest
Chapter	3:	Investment	Mathematics
Chapter	4:	Real	Estate	Mathematics
Chapter	5:	Income	Property	Valuation
Chapter	6:	Financing	Mathematics
Chapter	7:	Excel	Functions
Appendices
References
Author	Dedication	&	Biography