Discounted Cash Flow Analysis (DCF) in Real Estate Explained

[@BreakIntoCRE]

Any other real estate finance terms you'd like to see covered in more detail in a future video on the channel?

[@h00Lia]

Have you covered common Excel formulas? Thx!

[@BreakIntoCRE]

@@h00Lia absolutely - see the following videos for some of the most commonly used Excel functions in real estate financial modeling: kzbin.info/www/bejne/gKa4loZvjJqdj8U&pp=ygUdYnJlYWsgaW50byBjcmUgZXhjZWwgZm9ybXVsYXM%3D kzbin.info/www/bejne/fZLYdXpsZdyYptE&pp=ygUdYnJlYWsgaW50byBjcmUgZXhjZWwgZm9ybXVsYXM%3D

[@Bratwhotravels]

Can you cover levered and unlevered ones

[@Scott-ff2oe]

Rates and ARR.

[@eightonecapital6554]

Good morning Justin. I just saw your course on Udemy and was wondering if within the course you talk about escalation factors (lease, ground lease, absorption/occupancy). I only ask because i have been tasked with creating a commercial real estate development model for my company and a few of the requirements for the model are lease escalation, ground lease escalation, and occupancy escalation. Thanks in advance!

[@hoomanbeing4918]

5:13 you forgot to subtract the initial investment to make it net. that would be PV only right?

[@mmm22chess]

Yes. He did PV

[@Yourtube_007]

Great vid !

[@luxsend575]

Thank you

[@tuinhanh8873]

RNAV plsss. Many tksss!!!

[@nathankurz]

Most of the analysis I’ve done use the market rate as the discount rate. 15% is wild to me, I don’t know where you’re going to find those market cap rates. Can you give one example of a place where you find 15%?

[@Kurt-rg8jq]

Where do you source the market rate? Like 10-yr treasury?

[@alexh.4842]

Should we discount NOI or net cash flow?

[@mikesiley4897]

NOI. The mortgage is a separate component not associated with the value of the property.

[@alexh.4842]

@ okay thanks. Like FCFF, unlevered free cash flow

[@naimaahmed1603]

How to do financial modeling for multiple properties that don’t use interest rates but a preconstruction sales or any property that don’t use interest rate from the bank 🏦. This case is applicable to Muslim countries as they believe interest base loans is anti their faith. In such situations what can you advise. Thank you

[@mostimusic2616]

That’s a really interesting question. I have some Muslim friends and they don’t even care for interest rates, but they are mostly Turkish and therefore not so strict and do many things that are haram. Are there governments which consider your approach? Like Malaysia or Indonesia. Would be great to hear about that.

[@Scott-ff2oe]

Join.