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Concepts

December 13, 2018

5 min read

Deciphering Debt Risk in Private Real Estate Investments: The Role of WACC

Risk management is an integral part of any investment decision, and real...

WACC is a financial metric that calculates the average rate of return a company is expected to provide to all its security holders, including debt holders and equity investors. Essentially, it reflects the cost of capital from all funding sources. The formula for WACC is:

WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)

Where:

E = Market value of equity

V = Market value of equity + market value of debt

Re = Cost of equity

D = Market value of debt

Rd = Cost of debt

Tc = Corporate tax rate

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October 3, 2023

Blog Series

The Complete Guide to Multifamily Syndication

‍Welcome to our in-depth educational series designed for those looking to...

Introduction:

Welcome to our in-depth educational series designed for those looking to master the art of multifamily syndication. Whether you’re aspiring to syndicate your own multifamily investment, aim to join a private equity firm in this sector, or simply want to be a more informed passive investor, this resource is tailored to provide you with comprehensive knowledge and practical insights.

This series is structured as a virtual course, broken down into detailed sections, each focusing on a crucial aspect of multifamily syndication. Through this blog series, you will gain a deep understanding of the market dynamics, legal frameworks, financial analysis, and much more that are essential to succeeding in this field. Each blog will link back to this start page so you can come back here and see all the topics in one place.

Course Overview:

Below is a detailed layout of the course, segmented into key sections. Each section header is followed by a series of topics. Click on the topics to access the dedicated blog posts for detailed information and insights.

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