Condensed. Logical.
Principles
Principles on market, price and risk.
A condensed view of market logic and decision-making.
Debt can increase equity returns. It does not replace property quality.
Capital Structure
The capital structure affects both the return and the risk of a real estate investment. A higher proportion of debt...
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The year of construction describes the past. What matters is the remaining economic usability.
Remaining Useful Life
The year of construction of a property is clearly defined. Its significance for the current value is limited. Two buildings...
An acquisition is only the beginning. The exit is part of the decision.
Exit Viability
A property is not acquired solely for its current income. An assessment of the investment therefore cannot be limited to...The use generates income. The alternative limits risk.
Third-Party Usability
A property generates income from its current use. For an assessment of its risk, that perspective is not sufficient. The...Income alone does not create value. Its stability is decisive.
Income Quality
Income is a central basis of real estate value. Its amount alone, however, is not sufficient. High income can appear...A method alone is not a valuation. Professional judgment is decisive.
Expertise
A valuation method creates structure. It organizes data, assumptions, and calculation steps. It does not replace expertise. A method can...A value requires judgment. Not only calculation.
Responsibility
A value can be calculated. It can be derived from data, models, and methods. It can appear plausible from a...Risk does not disappear. It gets priced in.
Risk Premium
Risk is part of every investment decision.It does not disappear with time.It does not disappear through hope.It does not disappear...A price must be resilient. Not merely justifiable.
Price Discipline
A price can be stated.It can be justified.It can be derived from costs, expectations, or previous market phases. This does...Interest is not demand. Closing capability decides.
Buyer Pool
A sales process often begins with interest. This does not yet create resilient demand. An interested party can request documents....Intention is not a closing. Execution decides.
Transaction Capability
A transaction often begins with interest. This does not yet create a closing. A buyer can show interest. A seller...A price is not resilient. If the capital cannot support it.
Financing Viability
A price can be stated. It can be negotiated. It can appear in an exposé. This does not make it...Not every property is difficult to sell. Some are simply priced incorrectly.
Marketability
A property is not automatically difficult to place.The market has become more demanding. The problem does not always lie in...
