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I have no idea why the formatting was presented like that on the top paragraph?
I’m also confused because I didn’t type this yet it’s included in my question?:
“The discount rate at which the net present value of an investment is equal to zero. The internal rate of return is a time value of money metric, representing the true annual rate of earnings on an investment. In real estate practice, IRR is used together with other return metrics such as(…)“>internal rate of return is based on a $5MM purchase price and the projected cash flow.”
Who included this statement in my question? I didn’t type that.
Hey thanks.
I have some questions.
What exactly is the difference between NPV and PV?
What is the difference between discount rate and IRR?
I’ve seen some videos about NPV and they subtract the PV in the formula, why isn’t that done in the example?
Let’s say that we buy a property and after year 2 we start a value add project. We buy out the tenants, renovate the units, and stabilize. Let’s say this took 1 year. What would the cash flow look like?
I’m trying to become proficient in modeling and underwriting. Do you think that the Agent Candidate program would be sufficient? I also was wondering if you guys have assumptions on expenses. I know 30-40% of gross income is standard but I wanted to see if you guys had any assumptions. Example: Utilities at X/Unit, R&M at X/Unit etc. I know there are many nuances that will impact assumptions but just wanted to see if you guys had any information regarding expenses assumptions.