Hold/Sell Analysis

The process of analyzing whether to continue holding (i.e. owning) income-producing real estate, or whether to sell the real estate and reinvest the proceeds in an alternative opportunity. Many professional real estate asset and portfolio managers perform this analysis on regular basis, so as to optimize the overall returns of their respective portfolios and beat their target benchmarks.

Real estate professionals use analysis tools such as real estate discounted cash flow models to calculate the return on the hold scenario, and then compare that to the projected returns on the sell and reinvest scenario to make a more informed investment decision.