From the course: Real Estate Analysis Foundations

Unlock this course with a free trial

Join today to access over 24,600 courses taught by industry experts.

Analysis

Analysis

- The second stage in the investment process is the analysis stage. Now, the analysis stage is the primary focus of this entire course that you're taking, and the analysis stage is so crucial to investors because it really helps them answer some very important questions, questions like, are the returns from this investment sufficient to compensate the risk that I'm taking? So, being able to calculate what those expected returns are using concepts such as the internal rate of return, cash multiples, and yields as well as a few others we're going to explore in the measures of return section. It also helps you to answer, what are the key drivers that impact the performance of this investment? And what happens if you are wrong or right or if you're low or high about those assumptions? So, an example would be, if you were doing a rental income property, one of the big drivers of your returns would be what kind of rents you think you're ultimately going to achieve from that investment…

Contents