Expected Value

Real Estate Investor Horror Stories – 2020 Edition

Variance Real estate investing doesn’t ALWAYS go the way you expect. That’s true just as other investing doesn’t always go the way you think. Let’s learn about mathematical expectation ( EV Expected Value) and how to think about how your expectations may vary from what you’d ideally like to achieve. Plus, other investors share their real estate investor horror stories. In this class you’ll learn: What is mathematical expectation ( EV)? How do you apply this concept to real estate investing to make you a better investor? Should you “avoid risk at all costs”? Is there ever a time to make a … Read more

How to View Expected Value Charts

The Real Estate Financial Planner™ software allows you to model your own investing strategy or see examples of previously created investing models. Often, users will choose to model risk and the variability of returns by using Rules to add this variability and conduct multiple runs of the same Scenario. When we do multiple runs—sometimes hundreds or even thousands of runs—this is referred to as Monte Carlo. Monte Carlo simulations allow us to summarize the results of a large number of runs of the Scenario. If we take the average of all the values generated by the Monte Carlo runs for … Read more