3 IMPORTANT Real Estate Investment Metrics You're Probably Not Using [But Should]

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Күн бұрын

3 IMPORTANT Investment Metrics You're Probably Not Using //
When you're analyzing a commercial real estate deal, it's really easy to just look at the big picture items like the IRR, the equity multiple, and the cash-on-cash, but these aren't the only things you should be focused on as a commercial real estate investor.
And by looking at a few other key metrics, you can get a much clearer sense of how your business plan is projected to impact a deal and the effects that leverage might have on your investments, which can help you make more well informed decisions about the actions you plan to take and how you plan to capitalize a real estate deal.
So in this week's video, I want to zoom in on 3 metrics outside of the IRR, equity multiple, and cash-on-cash that a lot of newer investors miss, (or don't pay as much attention to as they should), and what each of these things can tell you within an investment analysis.
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🕒 Timestamps 🕒
0:00 Introduction
0:53 Metric One
3:48 Metric Two
6:46 Metric Three
10:07 How To Learn More About CRE Investment Analysis
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*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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Пікірлер: 12

@BreakIntoCRE 10 ай бұрын

What are some other metrics you look at closely outside of the IRR/equity multiple/cash-on-cash?

@realestatejunkie0414 10 ай бұрын

Well, an important metric in today’s economy is your DSCR 😂

@bemanuel16 10 ай бұрын

Great overview!

@AS-td9rj 9 ай бұрын

wow!! Nice insights! you're my guru!!

@dougkutzgar7549 10 ай бұрын

Great work...very relevant especially in today's economy.

@justinbiggs1687 10 ай бұрын

If the loan constant is less than your unlevered IRR, would that imply a positive leverage scenario?

@csands247 10 ай бұрын

Just FYI, an unlevered IRR is an investment return metric that consists of only equity, no debt on the deal. Therefore no loan constant would be applicable. In a levered scenario, you would want to analyze the loan constant by comparing it to either your going-in cap rates or stabilized yield on cost, depending on your investment strategy. Usually, you want loan constants to be below the cap rates but it is still a great practice to justify your decisions in either case - above or below cap rates - and look into capital solutions (eg. IO financing on short-term strategies, perhaps on value add plays if you can) that can help make a deal pan out better and help the loan constant metric.

@MrParnellLivingLife 10 ай бұрын

random question just want to see if you will answer what is your net worth?

@JimGCoachingClub 9 ай бұрын

Your real estate insights are fascinating. Our faith-based channel, focused on Airbnb passive income, shares a similar audience. I really think a collaboration could be mutually beneficial. Let's discuss it further! 🏡🙏