The Three Currencies that never devalue! - Knowledge - Data - Intuition
At PROPPRO247.COM we provide you with more … Knowledge, Data and Systems to perform your take faster with more accuracy! Intuition is what you can rely on once you have the knowledge and data. Take, for example, Commercial Property Brokers world over mostly make use of a Cap Rate method to prescribe a value, whereas prudent Investors, fund managers, portfolio managers all make use of NPV, IRR and MIRR because this is the formula that will allow them to compare investment opportunities accurately. yet the CRE Broker will wonder why they are wasting so much time and getting little success. It is this type of knowledge that we teach for free when you make use of our smart valuation systems. In less than 40 seconds you are able to produce the type of numbers that make sense for Investors.
Another example is that the Residential Realtor/Estate Agent make use of historical sales statistics when attempting to provide a current market valuation to prospective sellers. Nothing can be further from the current market value because, historical sales stats do not consider the change in interest rate cycles, economic cycles and the ever importance of stock availability in the current market as opposed to what stock levels were historically when sales took place. Quite honestly, it is estimated that more than 30% of sales transactions take place in a non-arms length environment, such as liquidation sales, internal sales, family sales etc. We believe that only the buyers are performing true and current market evaluations. They will study a particular suburb and the stock on the market currently. They will reduce these prices to a price per square meter or foot, and easily identify over or underpriced stock. The only correct and Current Market value of the residential real estate is found by comparing all the available stock currently on the market and pricing accordingly. Obviously, if you are a serious seller or estate agent, you would know that if you are not competitive with all the other competing property on the market, then you have not performed a current market valuation. It does not matter how much data you provide from historical sales, you will not be able to convince an informed buyer who has all the current pricing comparisons available. At PROPPRO247.COM data science division, we bring the current asking prices per square meter or foot, per suburb and per property type.
That said, accountants, business brokers and conveyancers who all offer advice to clients, need to make use of proper formulae in order to speak the same language as funders.
So we have spoken at length about the real estate industry, but what about all these professionals that are loosely offering advice, values and strategy for business owners. Unless you are using proper three statement analysis and correct valuation formulae such as NPV, IRR, IRR, XNPV and XIRR, then you are possibly not providing accurate advice. Not only is there a strong possibility of incorrect advice, but it is very easy to adversely affect funding capability when not using these formulae and providing them to the funders. With correct systems for all industry types of business, you are able to confidently consult with precison. At PROPPRO247.COM we have an abundance of Business Models, Business valuation Models, CRE Valuation Systems, Development Valuation Systems that bring knowledge and data to the table. With this, you bring your intuition. mail us propscience@proppro247.com
