When a real estate sponsor is undertaking their diligence on a real estate investment opportunity, this will normally include a financial model with their assumptions on various inputs that drive the return of the asset. This can include market dynamics, rent growth and operating expenses, among others.

,It is important for investors to understand how conservative or aggressive each assumption is by referencing current market benchmarks and trends.

Commerical Real Estate Glossary

Explore more answers to commonly used real estate investing terminology