How Real Estate Private Equity Firms REALLY Value Properties // Major private equity firms are some of the most sophisticated real estate investors in the industry, with access to almost unlimited, in-depth market data, top-tier talent working on deals, and complex proprietary financial models that they use to make cash flow projections and analyze properties.
But after working at these types of firms myself for almost ten years, I've seen firsthand that there's a pretty standard process that's used across the board to value commercail real estate, which isn't as complex as you might think.
So in this video, I want to share with you exactly how real estate private equity firms come up with offer prices on commercial properties in the market, the core drivers of pricing that these investors are focused on most, and how you can use these same strategies to improve your real estate investment decisions when building your own portfolio.
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🕒 Timestamps 🕒
0:00 Introduction
0:58 Defining REPE
2:03 Capital Risk Buckets
2:34 Risk Level 1
3:44 Risk Level 2
4:59 Risk Level 3
6:34 Risk Level 4
8:16 Learn How To Analyze CRE Deals
#commercialrealestate #privateequity
*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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