Sometimes real estate prices are too high to yield adequate rates of return, as evidenced by the real estate bubble that’s just now deflating.
Some of the key services we provide is an unbiased look at targeted rates of return, helping our clients understand realistic expectations, and providing risk-adjusted maximum acquisition prices that meet requirements.
According to the general logic of the sales-driven real estate profession, now is always a good time to buy and the best pricing advice you’ll get is a list of “comps” in the local area.
This is not good enough! Markets go up, markets go down, and it takes fundamental knowledge of finance to know when to buy and how much to offer.
In addition to acting as your broker to see each transaction through, here’s what we can do for you:
- Consultation on deriving and understanding a realistic required rate of return (RROR) based on the risk level, liquidity, and leverage characteristics of the asset class
- Risk-adjusted maximum acquisition price you should offer to achieve the RROR
- Finance structure analysis to determine the best method of funding the acquisition
- Cash flow modeling, including a pro forma income statement over the targeted holding period
- Sensitivity analysis highlighting the elements of cash flow that most affect returns
- Economic research to validate all modeling assumptions, i.e. rental growth rates, vacancy rates, etc.
- Monte Carlo simulation risk analysis to stress test assumptions and understand how unexpected events can effect your returns
- 1031 Tax Deferred Exchanges
- Syndicated acquisitions – offering clients the opportunity to enter partnership purchases with like-minded investors
As a client you will receive a report including all these elements for each property we present to you for consideration.
We will walk you through all the research, assumptions, and analysis in a comprehensive presentation. Our goal is to build long-term relationships with our clients to make your overall real estate experience a rewarding one. This includes working with you on the disposal side when you are ready to sell your property, helping you understand whether or not current market conditions offer favorable or unfavorable selling terms.
Our job is to make you comfortable with all aspects of the real estate process.