How do real estate financial models vary by asset types?
Hello. I am curious about some of the nuances to consider by different property types. For instance, are there different considerations / metrics / valuation methods that you use for Industrial vs MF vs Office vs Retail. 
[{"id": "h0gvvfa", "text": "good luck.", "replies": [], "depth": 1}, {"id": "h0gw4xd", "text": "When you figure it the fuck out let the rest of the industry know.", "replies": [], "depth": 1}, {"id": "h0gwreo", "text": "Wait until you start comparing things between countries! A simple example:  Americans' \"cap rates\" are \"net initial yields\" in Europe. And Australians define and speak about yields differently than Europeans (gross and not net etc.)", "replies": [], "depth": 1}, {"id": "h0h2apj", "text": "Noone in this sub has the patience or time to answer such a broad question. Go through the library [here](https://www.adventuresincre.com/library-real-estate-excel-models/) and come back with some actual questions", "replies": [], "depth": 1}, {"id": "h0h5g3e", "text": "The answer to your question is yes", "replies": [], "depth": 1}, {"id": "h0h5lit", "text": "This is a never-ending question. But I can summarize it in brief:\n\n- Most of the leverage metrics are the same. You would look at DSCR, LTV, and DY. However for something like multi-family you may target a lower DSCR than something like hotels because the volatility is lower.\n- Most of the operating metrics are also similar, but just benchmarked against the same property type. This includes rent psf, vacancy, expense ratio, capex psf, TIs/LCs, etc. Note for MF and HT things are measured on a per unit/room basis while IN, OF, RT are per square foot.\n- The underwriting is very different. The revenue sources are different. In addition to base rent, hotels may have food &amp; beverage income, retail may have percentage rent, multi-family may have parking income, etc. Same with expenses - some things like management fee might be shared, but the amount of that fee is different for different property types. There's just too much going on here to list it all out for you.", "replies": [], "depth": 1}, {"id": "h0h9fwu", "text": "Nah man just slap a 4 cap on it. Easy peasy.", "replies": [{"id": "h0hsbbw", "text": "Alright Grant!", "replies": [{"id": "h0i4c9k", "text": "Nice.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h0hedav", "text": "If you have to ask on Reddit, you don\u2019t actually want to know.\n\nI know I\u2019m coming off as an ass, but there are a trillion free resources out there that can help you better understand... you just have a really really long way to go before understanding. If you think you don\u2019t, ask yourself that question out loud again", "replies": [], "depth": 1}, {"id": "h0hewws", "text": "I will provide a succint (but sincere) response:\n\n1) No, it all boils down Free Cash Flow and Free Cash Flow To Equity. It's like standard Financial Statements for various biz types\n\n2) Yes, very much so.  Investment analysis is not GAAP/IFRS reporting and the revenue &amp; expense drivers vary by product type. A hotel is not a NNN Office.  Also, convention differs drastically depending upon region.  Sometimes office components of industrial space is quoted at  rate in addition to the total warehouse sf...sometimes seperately.  Form often follows function and people quote and analyze assets according to what works for them and their industry/market - ADR and RevPar is not a thing in retail.\n\n3) Meh, kinda.  Institutional shops and industry associations can group assets together depending upon other factors than property type.  NAOIP is a thing as those property types are common fodder for institutional investors.  What matters most is meaningful distinctions and naturally catagorizing models and performance by asset type is meaningful.\n\nJust my two cents!", "replies": [], "depth": 1}, {"id": "h0hhiau", "text": "You should start modeling two of those then come back with questions.  Mf and retail be the easiest two", "replies": [], "depth": 1}, {"id": "h0icxm7", "text": "If it\u2019s development you move numbers until the IRR Is 18-22% if it\u2019s value add you move numbers until it\u2019s 15-18% and If it\u2019s core you move numbers until the IRR is 10-12%. Asset type doesn\u2019t matter, You\u2019re welcome", "replies": [{"id": "h0ld9n4", "text": "This guy cre\u2019s.", "replies": [], "depth": 2}, {"id": "h17ookw", "text": "Send me your PPMs. I am in.", "replies": [], "depth": 2}], "depth": 1}, {"id": "h0mlbxs", "text": "It was a 7 cap but now it\u2019s a 4 cap. Money please.", "replies": [], "depth": 1}]