does anyone have info on the type of valuation methods used in analyzing PE real estate investments?
the structure I am dealing with is one where a group of PE professionals raise money from investors, pool it into a fund, and use cash from the fund to acquire distressed real estate in development (commercial/residential). They acquire the properties through making a down payment (10-20%) using cash in the fund, and continually finance the development through pre-sales of the property. Entire property is sold within 6 months of project completion and money is returned to investors.
thanks in advance