Today is another AMA episode (Ask Me Anything). William from Northern California asks,

I find myself coming across more development opportunities and I’m needing some better “back of the envelope” criteria to help separate the wheat from the chaff.  Almost every deal requires spending some amount of pre-development money to bring the project into better focus.  However, at some point you should be able to come to a  go/no-go decision based on the numbers, after which you would kick the deal or renegotiate the price. hat does your “back of the envelope” criteria look like in order for you to proceed with a development project?

Do you look at the projected:

– Equity Multiple?

– IRR?

– COC return?


Host: Victor Menasce