From the course: Real Estate Analysis Foundations

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Summary of measures of return

Summary of measures of return - Microsoft Excel Tutorial

From the course: Real Estate Analysis Foundations

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Summary of measures of return

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- [Instructor] In this lecture, we're going to do a Too Long Didn't Watch summary of the Measures of Return section. So, let's do a quick recap. Would you rather know how much you're going to get from an investment but not know when you're going to get it? Or would you rather know when you're going to get it but not know how much you're going to get, or lose? Well, you want to know both, right? And that's why in the Measures of Return section we talked about the different measures that allow us to measure two very important things about investments, the magnitude and the efficiency of the investment. The magnitude measures how much you're going to get from an investment dollar for dollar, whereas the efficiency is how efficient or how quickly the investment will give those returns back to you as an investor. For the investments that are both low in efficiency and magnitude, these are the clear losers. And these are the kinds of investments that you don't want to waste any of your time…

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