Distressed Real Estate Debt Valuation Methods?
Hi,
what are the main distressed real estate debt valuation methods?
I was thinking of
- liquidation method
- DCF
- anything else?
Thanks in advance
Hi,
what are the main distressed real estate debt valuation methods?
I was thinking of
- liquidation method
- DCF
- anything else?
Thanks in advance
Career Resources
errr...comps / cap rates ?
and what you intend to do on your liquidation if you don't know how to value to business, value each brick for scrap? land value (back to square one)?
+1 on this.. I think it would be interesting to learn about if anyone has some knowledge to drop.
Doesn't the valuation depend on the potential outcome? A debt for equtiy swap is just one outcome which would comprise a DCF or any other valuation of the properties (or portfolio) per se. Correct me if I am wrong.
Why would the capital structure alter the outcome of the DCF, assuming constant WACC? Note: we're valuing the asset, not the security here.
the topic actually is " Distressed Real Estate Debt Valuation Methods". I was thinking about valuing the security.
Valuing the asset is part of the valuing the security. for valuing the security, as said, I thought of: - DCF primarily - what about multiples (recent transactions) if available - what about cost approach?
Search "Modelling a Portfolio of Non-Performing Loans" in the search toolbar. Yes, modeling is spelled wrong.
You can't value the security if you don't value the asset. I mean cmon.
Use a DCF, stress vacancy/exit cap rate/discount rate/capex and see where you get comfortable; where is the margin of safety?
Pariatur quibusdam dicta et aperiam aperiam eum. Totam rerum corporis quisquam minima.
Explicabo ut unde velit pariatur quo. Sit provident et quia nulla quae quis. Est sit atque illum quam porro.
Nihil fugit voluptatem dolores expedita voluptas iure amet. Omnis quaerat et in ut facilis sit qui. In ratione voluptas aliquid consequatur. Quidem ut aut possimus sunt maiores. Suscipit in quod dolores totam repudiandae necessitatibus dolore. Quia architecto similique dolorum voluptatem. Quos sed est vel non in ullam laborum mollitia.
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...