BiggerPockets Book Club- Real Estate By the Numbers Part 3
Part 3 gave us so many approaches for deal analysis and ways to compare two investments. Dave and J did a great job turning apples and oranges into apples to apples. It was a fantastic explanation of what each analysis was and what it tells you. The chart of which question could be answered by which formula was hold.
Here are a few questions to consider from part 3. Feel free to use these as a guide or add your own thoughts.
Which return metrics do you favor in deal analysis? What makes them more favorable to you? Did you discover another metric that more accurately aligns with your investment goals?
How do you personally define cashflow?
Which of these metrics do you focus on when analyzing a syndication, both as a syndicator and/ or investor?
When do you utilize cap rates when analyzing a deal? Is it early on as a quick assessment, or as you start to hash out the details?
CoC can help you assess how to use your investments to pay for your liabilities. Have you done this in your own life?
Making average returns between investments to compare gives an apples to apples comparison. Have you used this approach before or some other strategy?
Which comparison approaches do you use when analyzing deals side by side?