I've uploaded the data I reference in the video to Google sheets: docs.google.com/spreadsheets/d/1ynMaNr7RB2z8wjxceje5ZUO9hLiCVs9WvwpdIw9Ctq8/edit?usp=sharing
@darinbrindle28823 жыл бұрын
I love great teams, and long term relationships, extremely important! Can't wait for the next video!
@industrialize3 жыл бұрын
@@darinbrindle2882 Thanks Darin, I greatly appreciate your comments and support!
@MikeSoMoney2 жыл бұрын
Great job!! you just did the most simplest explanation of NPV
@industrialize2 жыл бұрын
Much appreciated!
@eldowns2 жыл бұрын
I can't believe how well organized and presented this is. Seriously impressed and grateful.
@industrialize2 жыл бұрын
Thank you for the feedback, very much appreciated!
@akmclemore3 жыл бұрын
Nice analysis bro! Your backdrop and production quality is awesome!
@industrialize3 жыл бұрын
Thanks man, very much appreciated!
@animeshbvu2 жыл бұрын
This is a great video Chad, crisp and to the point, and full of useful information !!
@industrialize2 жыл бұрын
I appreciate the comments, thank you!
@WillBockovenCRE9 ай бұрын
Excellent
@catl10993 жыл бұрын
GREAT video, Chad! Really well done man!
@industrialize3 жыл бұрын
Thanks Cat! I channeled my inner excel nerd for this one!
@darinbrindle28823 жыл бұрын
Great information Chad. What I learned is that real estate investors need to make sound investments with a solid rate of return, so they can invest back into the properties and hire me to complete improvements where needed for maintenance and improvements! As for all the calculations, I'll leave that to you and the experts! Haha
@industrialize3 жыл бұрын
I couldn't have said it better myself Darin! My next video will be about the 10 tips I have for commercial real estate investors and one of them is making sure you have a solid team around you (including a great contractor, naturally!)
@Real.Estate.Report3 жыл бұрын
Man this was jam packed with really helpful information. I have been studying these OM's and pro-forma's and admittedly I have been taking a much more simplified approach when it comes to my "underwrite" on the deals. I will for sure be watching this back next time I have a deal that I'm highly considering. Although I'm concerned that the discount rate equation will make an otherwise decent deal look much less attractive.
@industrialize3 жыл бұрын
Using NPV & IRR for modelling becomes even more useful once you factor in debt and tax considerations. Getting an after tax and after debt IRR is a super useful tool! I'm putting together a google sheets file which will include a more elaborate spreadsheet as well. Thanks for the comments!
@christopherdrobot18713 жыл бұрын
Oh, when the video started into the excel I really got into it. Love it, Chad - great info. That negative nickel of NPV doesn’t quite exceed my hurdle rate though, so I’m doing to pass
@industrialize3 жыл бұрын
From one excel aficionado to another, thanks buddy! Too funny on the -$0.05 NPV, imagine a deal getting lost because of something like that haha!
@alana.8593 Жыл бұрын
What is the Discount Rate? Is that inflation? Newbie here.....
@industrialize Жыл бұрын
Great question! The terminology can vary across industries (in banking it’s often referred to as the rate the Feds charge commercial banks to borrow, so I’d look at the intent of these rates rising is to combat inflation). In the context of real estate, or finance in general, a discount rate is the rate an investor chooses to discount all the future cash flows to the present value. There are numerous ways of determining this rate, such as the desired rate of return the investor wants to achieve (while simultaneously accounting for risk), or it could just be a rate that’s common in the market, or it could also be calculated by adding some risk premium to the 10 year treasury. The higher the discount rate the lower the present value and vice versa.