Cash on Cash Return: Should This Replace Cap Rate?
Category: Investing
The cap rate is a cornerstone of commercial real estate analysis. But, it isn't without limitations. Most investors borrow money when they purchase real...
Internal Rate of Return: An Investor’s Best Friend
Category: Investing
A good friend will keep you out of trouble. A good friend will tell you a good story. A good friend will help you make tough choices. IRR is the commercial real estate...
What Is The Difference Between Discount Rate and IRR?
Category: Investing
Discount Rates and Internal Rates of Return are like two sides of the same coin. Both help investors make investment decisions. But, they are applied in different ways and
In this episode we compare IRR and Cap Rates, describe the circumstances in which they are applied and explain how, when used together, they provide a more complete
Floor Area Ratio is a metric used by municipalities to limit the development intensity of a parcel. FAR measures the relationship between developable area and land area...
Think of not having an FAR like driving down the highway without a posted speed limit. Just because you don’t see the sign it doesn’t mean you can go as fast as you want. Other metrics...