What’s This Deal Worth? The Only Honest Answer: “To Whom?” 💬 “Value in real estate is relative. Just like time in Einstein’s theory of relativity—it bends based on your position.” Someone recently asked me what I thought a particular deal was worth. Simple question, right? But it sent me down a rabbit hole. Because in real estate, there’s no ticker symbol flashing the “right price.” Is it worth more to: A long-term buy-and-hold institution with cheap capital? A local syndicator trying to hit a cash-on-cash target in 18 months? A first-timer raising outside money with a 90% leverage stack? Each of us brings our own lens: Risk tolerance Skill Stacks (Property Management, Renovations, etc.) Leverage strategy Track record and reputation Access to equity and financing Even how we model matters. Some models miss basic stuff—like LTOL, expense inflation, or adequate working capital. I’ve seen spreadsheets that project rent growth without factoring turnover loss or renewal drag. Value is a fingerprint, not a formula. Sales comps? Sure—but those require context. Cap rates? Only useful if your assumptions don’t have fairy dust sprinkled in. IRR? It depends on which IRR you’re using (XIRR, MIRR, Levered, etc) and whether the cash flows or exit cap is real or aspirational. And sometimes you do overpay—on purpose. If it unlocks a larger assemblage or fulfills a 1031 deadline, the math isn’t just math anymore. It’s strategy. So what’s it worth? That depends. On your goals, your timeline, your capital, your constraints—and your mistakes learned the hard way. That’s what makes real estate so fun. It’s inefficient. It’s human. It’s messy. And that means opportunity—for those who think deeper. 💡 How do you define value when evaluating a real estate deal?