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Evaluation of Investment Projects

There are two main types of properties that can produce rental income, known as Residential and Non-residential properties.

Residential properties are single-family or multi-family buildings, and Non-residential or commercial properties, are Office Buildings, Hotels, Properties used for Retail, and Industry Buildings.

To evaluate a Real Estate Investment, we, at new MindEstate, use the NPV (Net Preset Value), and the IRR (Internal Rate of Return) equations, to support our studies. We calculate the expected cash flows generated by the property's rental income, during the investment period, and we use the Discount Rate (or Rate of Return) that you require for your investment project.

Portugal - Photo by Carlos Machado

We compare different projects, and present our findings in a report, that can help you on your decision making. Some information we collect ourselves, but most of the data we use is provided by the investors (i. e. the purchase price, some of the building's internal and external characteristics, duration of the investment project in years, and the expected asking price for the property sale in the last and final year).

Every investment is different, and requires a different approach. Some investors want to combine equity (cash) with bank loans (mortgages) on their investment projects. The cost of debt can be tax deductible.

We calculate different leverage scenarios, so you can find which one is the best for you.

Contact us for more details.

+31 (0) 51760042

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