What is investment value?
The maximum price a specific investor can pay and still earn their required return, given that buyer’s assumptions, financing, strategy, and tax position. In the worked deal, $29,489,486 at a 7.5% unlevered hurdle.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.