"I want an 8% yield." I hear a version of this from almost every investor I talk to, and there's nothing wrong with having a target return, but wanting an 8% yield doesn't mean the market owes you one. In this episode I break down the relationship between the return you actually want, the yield the market is currently pricing, and the risk you need to take to bridge the gap between the two, including what prime yield guides are (and aren't) telling you, and the one question you should ask every time someone sends you a deal "yielding 9%."

In this episode:

  • Why wanting an 8% yield doesn't mean the market owes you one

  • What return do YOU actually want and why yield and return aren't the same word

  • Working backwards from your required return to the right risk profile

  • What a prime yield guide is actually telling you (and what it isn't)

  • Prime yield as the market's risk benchmark breaking down where the extra 2.5% comes from

  • Why "is 8% a good yield?" is the wrong question — two properties, same yield, opposite investments

  • What prime yield guides ARE useful for

  • Why prime yield isn't your required return

  • Where the 5-Minute Deal Check fits into all of this

Links:

Rss Apple Podcaster
Podden och tillhörande omslagsbild på den här sidan tillhör Natasha Collins. Innehållet i podden är skapat av Natasha Collins och inte av, eller tillsammans med, Poddtoppen.