A few weeks back in an article entitled What is Due-Diligence and HOW Do I Do it I told you about an eBook that I had written examining the concept of Value as it relates to acquisition of Multi-Family income-producing real estate. In 13 Steps to Valuing Your First Multiplex I considered the subject of value in the most basic terms – the numbers.
However, it is important to understand that while some of the elements of value are straight forward, objective, and measurable, others are less clearly defined and can not be measured with a numerical value, which doesn’t make them any less important. In fact, as important as the numbers are, in my opinion they constitute no more than 20% of our decision to pull the trigger on an opportunity.
I explain some of the subjective elements of value in this video – please enjoy and don’t forget to comment.