Optimal financing largely determines the return of real estate companies. However, the real estate itself (location and stones) remains the most important. “Always put this intrinsic value first”, is the motto of real estate advisor René P.M. Stevens MSc Arch/MBA at the symposium of ‘Vastgoed Belang’. After all, it has to take care of the money flows. Valuation and financial leverage can at most add extra benefits.
“Always put intrinsic value first.” (René Stevens)
Ingredients of the real estate partnership. In a summary of the ‘ingredients’ of the real estate partnership, three things come first for Stevens. “The three L’s: location, location, location. A shack in a residential area is worth more than a villa in a slum.
The complete list of ingredients is as follows:
- The real estate (location and bricks).
- The tenant (s).
- The market (interest, taxation, economy).
- The partnership contract.
- The mates.
Read more in the Dutch article ‘Intrinsieke waarde belangrijker dan fiscaliteit en hefbomen’ published in the magazine Vastgoed Belang. (19990330 Real Estate Interest – René P.M. Stevens MSc Arch/MBA).
For an English translation ‘Intrinsic value more important than taxation and leverage’ send us an email.