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Updated about 1 year ago on . Most recent reply

Michael Worlund's profile image
Michael Worlund's profile image
Michael Worlund
  • Investor
  • from Tampa, Florida
  • Member since Jul 4, 2017
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11
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2
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Michael Worlund's profile image
Michael Worlund's profile image
Michael Worlund
  • Investor
  • from Tampa, Florida
  • Member since Jul 4, 2017
Connect
Michael Worlund
  • Investor
  • Tampa, FL
2
Votes |
11
Posts
Real Estate Deal Analysis & Advice

DCF discount rate

Michael Worlund
  • Investor
  • Tampa, FL
Posted

Hi all, I'm reading Real Estate By the Numbers and I get PVM, FV, interest vs discount rate. Where Im struggling is Dicounted Cash Flow using the Discount Rate. How are they building an interest rate into cashflows to make the numbers work? Only way I can see to do that is use the annual rent increase (say 3%) as the DR. Any guidance would be greatly appreciated.

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