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Posted over 17 years ago

How to Judge Risk on Bulk Purchases

 thought maybe we would talk about this aspect in Bulk Asset sales.

I find most people who try and play this game think Risk is about the board game.

I primarily work the analytic side of the deal. It is all about the numbers......

The key is market value.

How does everyone factor in market data for their offerings/purchases?

I monitor 5 basic things in any market.
Money in Motion
Number of sales
Average Sale
Median Sale
Price per SQFT

While I do a rundown of available inventory within the market. Inventory improperly priced or SHORT SALES, that linger in the market are more noise that a factor. The most important factor is what is selling.

Then ask yourelf?

How many are selling? For how much? Can I gain entry? Is it worth me gaining entry?

There many of factors involved. But if the value is not present............


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