From the course: Real Estate Analysis Foundations

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Exit

Exit

- Now to the final stage of the investment process, the exit. This is the part where you realize your investment returns or losses, if you didn't do it right. So, your net proceeds from the sale will be your sales price minus any debt that you owe and minus any closing fees or costs associated with making the sale. Then what comes after that will be your net profits. But how did you perform, right? So, at your exit, this is where you get to see how your investment actually did versus how you predicted it would do. So when we do the analysis, when we calculate the IRRs and Net Present Values, which you're going to learn later, those measures of return, we are doing it using numbers that we're predicting or projecting based on assumptions that we believe to be true going into the investment. But when you actually sell the property, when you're exiting from it, you get to calculate those measures using the actual cashflow, using real numbers. So you get to know the real performance of…

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