How to Calculate the Internal Rate of Return (IRR)

May 17, 2011

*A quick note to the reader: I have decided that my posts won’t evolve like an academic course from the basic concepts to the more advanced in deference to the practitioner who scarcely wants to read another post on, for example, how to calculate a CAP rate (Capitalization Rate). I will get to these more […]

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What is Net Present Value (NPV)?

May 16, 2011

What is Net Present Value (NPV)? Net Present Value is the single most important tool in your toolkit for evaluating and valuing commercial real estate. It forms the basis for other measurements, in particular the Internal Rate of Return (IRR). The NPV of an investment is the Present Value (PV) of the expected cash flows […]

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Bubbles, Bubbles Everywhere

May 15, 2011

It’s been about five years since the great turn of the century real estate bubble burst in 2006. The economy hasn’t even yet fully recovered from the Great Recession of 2008. Yet new bubbles seem to be forming anew. The most bubbly sectors appear to be, in order: commodities, government debt and technologies. That’s right, technologies. The […]

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Income Property vs. Commercial Real Estate

May 13, 2011

Welcome to the first post of my new blog. Let’s get right into it… Are apartment buildings a form of commercial real estate or residential real estate? I remember trying to convince a headhunter early in my career that my experience in multifamly qualified me for a hot lead she had for a large “commercial” broker in […]

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