Buy and Hold Real Estate Investing - How To Run The Numbers // In the commercial real estate industry, money is made in transactions. And this is true for real estate brokerage firms, real estate private equity firms, real estate lenders, and even other third parties like real estate appraisers, title companies, property inspectors, and any other companies associated with the buying or selling of commercial real estate properties.
But for commercial real estate investors, especially individual investors without third party equity, that money that is made in transactions is actually coming OUT of THEIR pockets through things like brokerage commissions, legal fees, escrow fees, loan fees, prepayment penalties, and a host of other nickel and dime costs that significantly add up over a real estate investing career.
And to avoid this, many real estate investors who are investing for cash flow and wealth accumulation over time, will employ some sort of a “buy and hold forever” strategy to reduce their transaction costs, take advantage of long-term growth in real estate values, and ultimately own commercial real estate assets free and clear once debt is paid off over time.
So if you’re looking at a deal with an indefinite hold period, how do you actually analyze a deal like this? And without a projected sale date or value, what return metrics should you be looking at to value a deal you’re thinking of acquiring and holding for the long-term?
That's what we'll cover in this video.
Enroll in the free Break Into CRE Real Estate Financial Modeling Crash Course here:
Check out all Break Into CRE courses here:
Want instant access to all Break Into CRE courses, models, and additional one-on-one support? Check out Break Into CRE Academy here:
Read More
By: Break Into CRE Title: Buy and Hold Real Estate Investing - How To Run The Numbers Sourced From: www.youtube.com/watch?v=8HvBBUcJ2dA
