Break Of Day Capital

What is IRR and How to use IRR to Evaluate a Deal?

what is irr and how to calculate IRR

💡 Summary: The internal rate of return (IRR) is a key metric that measures the expected return on an investment, accounting for the time value of money. While a higher IRR typically indicates a better investment, it doesn’t consider risk factors, so a higher IRR doesn’t always mean a better investment if the risk is … Read more

How do you Evaluate the Sponsor?

evaluating the sponsor

💡 Summary: In today’s volatile market, choosing the right multifamily sponsor is critical to mitigating risk and achieving long-term success. Investors should prioritize operators with proven track records, sufficient assets under management, and experience navigating past downturns like the 2008 financial crisis. Evaluate financial stability, communication practices, transparency, and team structure, and verify credibility through … Read more

2023 Real Estate Market Outlook

Looking at the 2023 real estate market through our crystal ball - Economic Outlook for 2023

💡 Summary: Macro signals point to disinflation and a potential recession, and some multifamily operators are under pressure from higher debt costs. Break of Day Capital is selectively acquiring from motivated sellers using conservative underwriting to target superior risk-adjusted returns. For passive investors, multifamily syndications in growth markets remain a resilient, inflation-hedging approach when managed … Read more

Single Family Homes vs. Multifamily. Which Investing Strategy is Right for You?

Single Family Home vs. Multifamily Investments; Beginning as a real estate investor

💡 Summary: Choosing between single family and multifamily investing depends on your goals, capital, and desired involvement. Single family homes are easier to enter and sell but offer lower cash flow and higher vacancy risk. Multifamily properties provide stronger, more stable income and the ability to force appreciation through increased NOI, though they require more … Read more