Coliving is a relatively new term slapped on the age-old concept of living with roommates. YD Development has developed over 100 coliving beds in NYC and have developed best practices as coliving has matured into a legitimate new real estate asset class. Derek covers everything you need to know about basic coliving investment analysis, including […]
Derek explains how members of a private equity cap stack are paid out in a waterfall profit distribution with a typical real estate example. This is critical knowledge in structuring commercial real estate deals with debt and outside equity. And it illustrates how General Partners (GP’s) and Limited Partners (LP’s) can achieve out sized returns […]
In this lesson of Real Estate for Noobs, Derek breaks down the Cap Stack, or Capital Stack, which, in real estate and private equity deals, illustrates how a project is financed between debt and equity. Derek also dives into what role real estate developers have in this stack, and the standard proportions of each debt […]
Which is better? To use all cash to pay for a property or to leverage debt to buy something bigger? In this episode of Real Estate for Noobs, Derek explains how and when to use debt strategically to boost your income, and what the dangers of debt are if you use it improperly.
Derek shares all his secrets to what led to him partnering with Yoori to form YD Development and purchase an $8m townhouse as our first project.
The IRR (Internal Rate of Return) is a frustrating concept to learn because it’s often taught using a very confusing definition. Derek explains the IRR using a definition we haven’t seen anywhere else, using practical experience with how the metric is used in the real estate industry.
In this episode we build on the relationship between NOI, Cap Rate, and Valuation to explain how to increase property valuation by boosting NOI. These tactics are the basic foundations we look for when deal hunting.
In this episode of Real Estate for Noobs, Derek explains the relationships between Net Operating Income (NOI), Cap Rate, and Valuation using a simple and clear analogy that we WISHED we had back in school. We also break down the components of a real estate Profit & Loss Statement (P&L), like typical revenue streams and […]
Derek explains YD Development’s approach to staying ethically grounded in an industry that’s prone to unethical behavior. The approach is simple: PUT PEOPLE FIRST! And we break it down to 5 categories that we have to consider when we design buildings for people: Ergonomics, Aesthetics, Efficiency, Community, and Financials.
In our first episode of Real Estate for Noobs, a series where we explain complex real estate topics in super easy to understand terms, Derek uses an analogy to explain the role of the real estate developer.