Receive a detailed look at why investors must use multiple measures—at least two—in their analysis.
- Hey guys, let's look at the…examples we visited earlier again.…The eight investments where…we're making $200 of an investment,…and then we're getting a total of…$1,000 back over a ten year period.…But, the difference here is each one of the investments,…the $1,000, come in different amounts…in different times.…So, some of them are spread out more,…and some are spread less…and it'll only come in two years, right?…With those we remember we saw that investment five…was the best option; was the most efficient at…returning the investment to the investor.…
When we look at the other measures,…the Net Present Value at a discount rate of 8%,…we see that the NPV is consistent…with the IRR here in this case.…That it is the most efficient at returning that capital.…Now, when we look at the Cash Multiple,…they all look exactly the same.…And, that was by design, right?…Because, you're getting the same amount of total cash back.…$1,000 for your $200 investment.…1,000 over 200 is five X.…So, you basically got your $200 back plus the 800 in profit.…
Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.
- Determining if real estate investment is right for you
- Choosing a market and a property
- Using financing
- Strategies for first-time investors
- Real estate market cycles
- Valuing a property
- Analyzing your market
- How leverage impacts investments
- Real estate investment case studies
Skill Level Intermediate
Managing Your Personal Investmentswith Jane Barratt1h 31m Intermediate
Learning Real Estate Photographywith Scott Hargis3h 21m Beginner
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
Start here3m 29s
1. Case Study: Joe's First Investment
2. The Many Ways to Invest in Real Estate
3. Real Estate Market Cycles
4. How to Value a Property
5. Understanding Your Market
6. What Makes a Good Investment?
7. Understanding Leverage
8. Case Study: Rental Income Property Analysis
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