How does goal-convergent valuation work?

Goal-convergent valuation starts with your selected goal — such as cash-on-cash return, DSCR, or cash velocity — and works backward to the purchase price your numbers can support under the assumptions in the analysis.

The basic idea

Goal-convergent valuation asks a practical investor question: at what purchase price would this property still meet my selected goal?

Many deal tools start with the asking price and calculate whether the return, debt coverage, or cash flow is good enough. 3Y works in the other direction. You choose the goal, enter the deal assumptions, and 3Y solves for the price those numbers can support.

What changes the result

The estimate can move when the goal changes or when the assumptions change. Rent, expenses, financing, vacancy, reserves, repairs, taxes, insurance, management, closing costs, and make-ready can all affect the price your goal supports.

How to read the result

The 3Y Estimate shows the purchase price supported by your selected goal under the assumptions used. You can compare that estimate with the asking price to understand whether the current price fits your numbers, or whether the gap would need to be addressed through better terms, different assumptions, negotiation, or walking away.

What this is not

Goal-convergent valuation is not the same as an appraisal, comparable-sales valuation, or automated market value. It is a decision-support method for understanding what price fits your investment goal under the assumptions used.

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