dcf presentation

Download Dcf presentation

If you can't read please download the document

Post on 19-Aug-2015

24 views

Category:

Education

3 download

Embed Size (px)

TRANSCRIPT

  1. 1. Real Estate Valuation MICROLEVEL Case Study Method
  2. 2. Albert Einstein when asked what he considered to be the most powerful force in the universe answered: Compound interest! Mignon McLaughlin
  3. 3. A good idea implemented poorly is a bad idea. Don't believe your assumptions are perfect. They never are . DCF is the best method available to value real estate. * If used properly! * Focus on concept; not on formula.
  4. 4. Stoneridge Apartments 31544 Freedom Road, Farmington Hills, MI 48336
    • Price:$2,050,000
    • No. Units:96
    • Building Size:80,400SF
    • Price/Unit:$21,354.17
    • Property Type:Multifamily
    • Property Sub-type:Garden/Low-Rise
    • Property Use Type:Investment
    • Commission Split:2%
    • Cap Rate:10.05%
    • Gross Rent Multiplier:3.35
    • Occupancy:96%
    • No. Stories:3
    • Year Built:1978
  5. 5. 100 Unit Apartment For Sale 22300 Englehardt, Saint Clair Shores, MI 48080
    • Price:$3,950,000
    • No. Units:100
    • Building Size:60,000SF
    • Price/Unit:$39,500
    • Property Type:Multifamily
    • Property Sub-type:Garden/Low-Rise
    • Property Use Type:Investment
    • Cap Rate:9.70%
    • Occupancy:100%
    • No. Stories:2
    • Year Built:1958
  6. 6. Farmington West Apartments 32777 Grand River, Farmington, MI 48336
    • Price: $2,500,000
    • No. Units:48
    • Building Size:40,736SF
    • Price/Unit:$52,083.33
    • Property Type:Multifamily
    • Property Sub-type:Garden/Low-Rise
    • Property Use Type:Investment
    • Commission Split:1%
    • Cap Rate:8.34%
    • Occupancy:97%
    • No. Stories:2
    • Year Built:1964
  7. 7. Case Studies
  8. 8. Discounted Cash Flow Analysis Local Trends Real Estate Trends Economic Expectations Competitor Expectations Know Return Desired Know the future Knowledge Needed of Property Knowledge Needed From Outside Property Tax Info & Laws Review of Leases Financing Alternatives Operating Statements Capital Needs Assessment Zoning Compliance Market Rental RatesOn & On & On & On......... On & On & On & On......... E $ timated Value
  9. 9. "Not everything that counts can be counted, and not everything that can be counted counts." (Sign hanging in Einstein's office at Princeton)