The Value of Internal Rates of Return
Investors frequently ask us what metric is the best to analyze and valuate a real estate opportunity. At Kenwood, we utilize multiple models to underwrite each acquisition. However, we find that, compared to other models, the Internal Rate of Return (IRR) captures more comprehensively the scope and ...
Read MoreCap Rates – The Misunderstood Valuation Metric
I was recently talking with a few potential investors about three different investment properties. In each situation, the first question they asked me was, “What was the cap rate?” Although many may think this is a natural question when evaluating a real estate investment, it made me wonder if they ...
Read MoreInvestment Perspective — Kenwood's Historical Real Returns vs. S&P 500
Most investors want a high rate of return along with a low level of risk. Stocks (Equities), mutual funds, and real estate are investment vehicles that investors often consider. These options can provide positive long-term returns. However, investing in commercial real estate provides an investor ...
Read MoreThe Sweet 16 of Real Estate Decision Making- March Madness
I am often asked by our real estate investors one of the following questions: How do we determine what properties to invest in? What is our acquisition vetting process like? What are the analytics we use in coming to a “yes” decision?
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