Lesson 12: Economic Cycles, Colorado Real Estate Licensing and Commercial Investing
October 12, 2016
Wed, Oct 12
Review:
- Demographics and Real Estate
- Late exams and make-up corrections graded by Mon, Oct 17
Presentation:
- Economic Cycles
- Real Estate Licensing in Colorado
- Commercial Investing
- Valuation approach
- Similar – same ROI worksheet
- Rent drives valuation
- Vocabulary is different, e.g., “Cap Rate”
- I prefer “Gross Rent Multiplier”
- Major difference: “business” valuation enters the picture
- How to value businesses?
- Rules of thumb valuation metrics
- Valuation approach
Activity:
- Let’s analyze an investment opportunity in Pueblo
- Make list of questions to answer, data to gather for ROI analysis
- Submit set of questions/data in class today
- Be prepared to discuss on Monday