Would you ever use NAV to calculate the sale of a portfolio. I know you can use forward NOI divided by cap rate to calculate the price of assets, but would you ever need to calculate the debt in the process of valuing a portfolio. What if you were sell-side in the transaction?
Trending Content - Real Estate Forum
| +59 | Development Fees > Sponsor Equity Contribution | 18 | 20h |
| +57 | What's an Undergrad to Do? | 21 | 2d |
| +43 | Advice to Job Seekers: Don't Sleep on Asset Management | 13 | 1d |
| +24 | Mid Sized REPE firm for first job in RE | 10 | 17m |
| +10 | Full-Time RE Acquisitions Analyst Recruiting - Class of 2028 | 4 | 1d |
| +3 | Tishman Speyer Debt Fund | 0 | 4d |
| +3 | Debt fund jobs | 1 | 4d |
| +3 | Thoughts on CIM Group today? | 11 | 1d |
| +3 | LDG Development wins $36.3M Lawsuit | 1 | 17h |
| +1 | Equity Waterfall - Market Standard | 2 | 2d |
Career Resources
I don't understand the question...typically valuing a portfolio you determine the price based on the NOI and other factors. Debt is somewhat irrelevant as it's the seller's problem...unless you are assuming it...most deals are just free and clear.
are you talking about REIT's and using a equity NAV calculation? More details are needed here.
I meant if they assume the debt, which I know is rare. I put on my resume that I calculated the NAV of a portfolio to get the sales price, but I meant to saw that I calculated the forward cap rate (NOI*Cap Rate). I have an interview tomorrow and I am looking for ways to cover my ass.
I'm still not following the premise. I wouldnt say its rare for a NTREIT or any private/public RE strategy to use debt. low leverage is considered 10-30%...with most residential/MF around 60-70%.
If it's a valid experience then I wouldnt worry about covering your ass...just walk through the logic behind your decisions. MAke sure you understand it. a million ways to approach any deal...no single right answer...just ones that have a clear thought out process and logic.
Sed et qui non nesciunt quis. Odit quia doloribus ut eos dignissimos tenetur suscipit. Dolorem molestiae est deleniti. Quis voluptate sunt dolorum dolores. Accusantium omnis architecto quidem quis aut.
Velit a est harum at ipsam perferendis. Hic tempore qui consectetur assumenda. Reiciendis ut sit sit totam.
Blanditiis unde distinctio rerum molestiae autem ipsa. Et autem consequuntur aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...