What Price to Pay? - EP.15
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Description
Today we’re going to talk about how to figure out how much to pay for an asset. When you’re buying an asset, price is the most important variable you’ll be looking at — probably not the only variable — but definitely the most important! Arguably, you should be spending 90% of your time answering the question: what is this asset worth? So today Brad and I cover — from real estate to private equity — how to know how much to pay and which factors you should consider. Listen in to learn how to appropriately price assets! Key Takeaways: [:13] Our topic of discussion today: how much to pay for an asset. [1:52] Brad walks us through how much to pay for an asset in the real estate world. [4:58] A real estate example for figuring out how much to pay for an office property. [9:03] How the exit price factors in to how much you’ll pay. [11:17] How much to pay for an asset in the private equity world. [15:04] Summarizing our key takeaways. Mentioned in this Episode: IRR Cap rate Unlevered vs levered Warren Buffett For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com
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