Understand the Investor Objectives before Presenting an Investment Analysis
An investment analysis examines economic, financial, and operational data for a specific existing rental property.
Without understanding the investor’s objectives first, however, your investment analysis may not provide the specific value conclusion that the investor needs with regard to meeting that investor’s specific real estate investment criteria.
As a result, your investment analysis presentation might be ignored and leave you wondering why the investor neglected to write an offer immediately.
Keep in mind that a specific investor looking for an investment property has unique investment requirements.
1. Wealth maximization requires consideration of solvency, minimum yield expectations, holding period requirements, tax shelter, or profit maximization at some target risk level.
2. Financial constraints may include the sources and amount of equity, the willingness to incur indebtedness, and the availability of favorable terms of financing.
3. Business considerations may involve limitations on time or physical ability to manage another investment, or might include a constraint that the investment opportunity be located within twenty minutes of other currently-held investments.
Being able to identify your investor’s objectives up front makes it more likely you can assist the investor in meeting those objectives, and ultimately increases the chances that your investment analysis presentation will hit the target.
