Real Estate Financial Analysis II REFI-0020

SPRING 2024
Sec. 1: Online (self-paced). Mar. 26-Apr. 30 (6 sessions). Selvaggio
Sec. 2: Online (self-paced). Feb. 6-Mar. 12 (6 sessions). Nihalani

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Advance from a single-year property operating statement to a multi-year cash flow forecast, generally referred to as a pro forma income statement, and estimate property value based on a series of cash flows over the duration of the hold along with proceeds from sale. Topics covered include time value of money (TVM); discounting; present value (PV); compounding; future value (FV); net present value (NPV); internal rates of return (IRR); lease escalations; effective rent; expense stops; yield capitalization; discounted cash flow (DCF) analysis; discount rates; cash-on-cash return; reversion; terminal capitalization rates or going-out cap rates; residual or terminal value; net proceeds from sale; selling expenses; debt service; before-tax-cash-flow (BTCF); levered and unlevered returns; income tax; after-tax-cash-flow (ATCF); depreciation and capital gains. This course uses MS Excel software.