Platform · Glossary
Goal-convergent price.
The purchase price supported by a stated investor goal under the current assumptions. The 3Y Estimate is what you get when you apply the goal-convergent method to a specific property and a specific goal: cash-on-cash return, DSCR, or cash velocity.
A third lens beside comparative and capitalization
Goal-convergent valuation is positioned alongside two common valuation lenses:
| Method | Starting point | Main question |
|---|---|---|
| Comparative valuation | Similar sales | What has the market paid? |
| Capitalization valuation | Income stream | What value does the income appear to support? |
| Goal-convergent valuation | Investor goal | What price supports my goal? |
The first two methods describe what outside market evidence may support or what the income may support. The third describes what price your selected goal supports under the current assumptions. All three are useful; the third is the one most often missing from off-the-shelf calculators.
Forward valuation vs. reverse valuation
Many property-analysis tools work forward: input a price, output a yield or cash flow figure. Comparable sales tools, cap rate calculators, broker opinions — all of these help estimate what a property may be worth, then leave the goal-fitting to the investor.
Goal-convergent valuation works in reverse: input the goal, output the price supported by that goal under the current assumptions. The reasoning starts where the decision actually lives — with the investor’s goal — and solves in reverse for the price where the deal’s modeled income, expenses, financing, and selected goal converge.
Why the inversion matters
When you start from a market price and check whether your goal is met, it is easy to soften the target or rationalize stronger assumptions. The math anchors on price, then asks the goal to adjust.
When you start from the goal and reverse-engineer a price, the gap becomes visible. You can see whether the asking price, local context, financing, operating assumptions, and selected goal converge — or which part needs to change before the deal makes sense under your numbers.
That reverse-engineered purchase price is not a promise and not an appraisal. It is a decision point that helps the investor see whether the asking price, the local context, and their own goals can meet in the same place.