A two-step inversion method for computing multi-layer subterranean formation properties includes processing gain compensated electromagnetic measurement quantities using a first inversion to compute a corresponding set of borehole corrected gain compensated measurement quantities. The first inversion includes a mathematical model of the tool and the borehole in a uniform, anisotropic formation. The set of borehole corrected gain compensated measurement quantities are then processed using a second inversion to compute multi-layer anisotropic formation properties. The second inversion includes a 1D inversion employing a point dipole model and a multi-layer formation model.