Determining replacement cost
People emphasize buying below replacement cost but I don’t have a good grasp on how to determine. Generally I’ll ask developers, brokers or reference insurable value to get at a replacement cost. Can anyone speak to this or know a good data set?
Ask developers. Brokers don't really know. Insurable value not really a great proxy IMO.
This. The only people who are going to have the slightest idea are the ones who actually do it for a living.
That advice is equivalent to saying "buy low, sell high." In theory, it is great, but in practice it is hard to find good deals on assets.
In certain markets, if the market value of the property is higher than its replacement cost, why would a seller offer to sell the property below market value?
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