BiggerPockets Book Club- Real Estate By the Numbers Part 3

BiggerPockets Book Club- Real Estate By the Numbers Part 3

Alicia MarksPro Member
Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes

Part 3 gave us so many approaches for deal analysis and ways to compare two investments. Dave and J did a great job turning apples and oranges into apples to apples. It was a fantastic explanation of what each analysis was and what it tells you. The chart of which question could be answered by which formula was hold.

Here are a few questions to consider from part 3. Feel free to use these as a guide or add your own thoughts.

Which return metrics do you favor in deal analysis? What makes them more favorable to you? Did you discover another metric that more accurately aligns with your investment goals?

How do you personally define cashflow?

Which of these metrics do you focus on when analyzing a syndication, both as a syndicator and/ or investor?

When do you utilize cap rates when analyzing a deal? Is it early on as a quick assessment, or as you start to hash out the details?

CoC can help you assess how to use your investments to pay for your liabilities. Have you done this in your own life?

Making average returns between investments to compare gives an apples to apples comparison. Have you used this approach before or some other strategy?

Which comparison approaches do you use when analyzing deals side by side?

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Investor · Tampa, FL · Member since 2019 · 25 posts · 13 votes
3y
Quote from @Karen Sandvoss:

Can someone check my math? I think there's a typo in chapter 17 hone your skills question 2. $173,000 / 65,000 should give an EM of 2.66, not 1.66 as stated in the answer section. Correct?


 I agree. The answer is 2.66. There are several wrong answers in the Hone Your Skills. There needs to be another proofread of the answers to the questions.

See this reply in the discussion

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  • Jewel B.Pro Member
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y

    Oh a book club! How exciting!

    Too bad I'm just now seeing this and just received my latest book order yesterday - this was not one of the books in my most recent order, but it sure will be in my next one. I have quite the collection of BP books at this point!

  • Member since 2022 · 3 posts · 2 votes
    3y

    Can someone check my math? I think there's a typo in chapter 17 hone your skills question 2. $173,000 / 65,000 should give an EM of 2.66, not 1.66 as stated in the answer section. Correct?

  • Investor · Tampa, FL · Member since 2019 · 25 posts · 13 votes
    3y
    Quote from @Karen Sandvoss:

    Can someone check my math? I think there's a typo in chapter 17 hone your skills question 2. $173,000 / 65,000 should give an EM of 2.66, not 1.66 as stated in the answer section. Correct?


     I agree. The answer is 2.66. There are several wrong answers in the Hone Your Skills. There needs to be another proofread of the answers to the questions.

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