Thanks for the vid, Seth. It would also be helpful if you showed the math on how you came to the percentages for each option and the annual returns. How did you come up with 15.84% return and how did you that % to get $10k per year and $150k in year 5?
The 15.84% comes from an actual IRR formula that's fairly complex. There's an IRR function in Excel that most underwriters use. Also the 150K in year 5 is coming from this disposition of the property. The investor isn't just making 10K again...they are making their percentage of the sale proceeds in year 5 as well.
i would have liked for you to explain the math instead of just saying its 15.84% so that way we get a better understanding but thank you for your time.
Thanks for the vid, Seth. It would also be helpful if you showed the math on how you came to the percentages for each option and the annual returns. How did you come up with 15.84% return and how did you that % to get $10k per year and $150k in year 5?
do we not have an answer to it lol?
The 15.84% comes from an actual IRR formula that's fairly complex. There's an IRR function in Excel that most underwriters use. Also the 150K in year 5 is coming from this disposition of the property. The investor isn't just making 10K again...they are making their percentage of the sale proceeds in year 5 as well.
It's the rate at which the present value of the future payments (10k for 4 years, and 150k in year 5) would equal to the initial 100k outlay
Great information Seth! You do an awesome job with explaining. Thanks for sharing your knowledge!
where is the link to the value add process that you mentioned at minute 4?
thank you
How much the cost of learning the Multifamily Investment courses?
i would have liked for you to explain the math instead of just saying its 15.84% so that way we get a better understanding but thank you for your time.
Great explanation!!
Love this
Before he corrected the $1m, I was thinking great am I lost already?? 🤦🏻♂
You left a lot out. Appreciation? You mention cost segregation but didn’t include the deductions, and principal pay down? IRR is much higher
That’s a million you 🙄 nice job duh