Just FYI, an unlevered IRR is an investment return metric that consists of only equity, no debt on the deal. Therefore no loan constant would be applicable. In a levered scenario, you would want to analyze the loan constant by comparing it to either your going-in cap rates or stabilized yield on cost, depending on your investment strategy. Usually, you want loan constants to be below the cap rates but it is still a great practice to justify your decisions in either case - above or below cap rates - and look into capital solutions (eg. IO financing on short-term strategies, perhaps on value add plays if you can) that can help make a deal pan out better and help the loan constant metric.
Your real estate insights are fascinating. Our faith-based channel, focused on Airbnb passive income, shares a similar audience. I really think a collaboration could be mutually beneficial. Let's discuss it further! 🏡🙏
![When [& Why] The Real Estate Market Could Hit Bottom](http://i.ytimg.com/vi/aZFI10UMlLQ/mqdefault.jpg)
![What a "Good" Real Estate Deal ACTUALLY Looks Like [With Examples]](/img/n.gif)
What are some other metrics you look at closely outside of the IRR/equity multiple/cash-on-cash?
Well, an important metric in today’s economy is your DSCR 😂
wow!! Nice insights! you're my guru!!
If the loan constant is less than your unlevered IRR, would that imply a positive leverage scenario?
Just FYI, an unlevered IRR is an investment return metric that consists of only equity, no debt on the deal. Therefore no loan constant would be applicable. In a levered scenario, you would want to analyze the loan constant by comparing it to either your going-in cap rates or stabilized yield on cost, depending on your investment strategy. Usually, you want loan constants to be below the cap rates but it is still a great practice to justify your decisions in either case - above or below cap rates - and look into capital solutions (eg. IO financing on short-term strategies, perhaps on value add plays if you can) that can help make a deal pan out better and help the loan constant metric.
Great work...very relevant especially in today's economy.
Great overview!
random question just want to see if you will answer what is your net worth?
Your real estate insights are fascinating. Our faith-based channel, focused on Airbnb passive income, shares a similar audience. I really think a collaboration could be mutually beneficial. Let's discuss it further! 🏡🙏
On another note, Justin is fine af
have u thought of making power bi tutorials? I feel like there's limitless potential w/ power bi in CRE