Re = Rd + LR(Rp-Rd)
Another formula to measure leverage and corresponding risk associated with taking on more leverage. Practical insights were discussed concering what to consider when making forecasts of income and future sale price. Practical insights from experience.
That formula coupled with the simple Gordon Growth Model can provide some practical "back of the napkin" assessments when you consider real estate investing.
Dr. Anderson and Dr. Clark offered detailed explanations of how secondary markets work as well as the CMBS markets. How they work, and how we can use them.
Another information packed day.
No comments:
Post a Comment