I am looking at two proformas for one investment and noticed the following:

1. The discount rate is 10 percent for an un-leveraged investment on the proforma and yields an IRR of 11 percent.

2. The discount rate is ...

Hi everyone,Newbie investor with a quick question regarding mortgage rates.I was pre-approved for a loan, with the interest rate ranging from 2.75% to 3.75%. The discount points range from .359% to 2.703%. Obviously...

Hey BP,So I am reading What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli, great book so far. However, I'm really getting hung up on the concept of Discount Rate. In the book he uses 10%...

Quick question on discounted cash flow analysis for anyone who has any input on the topic.Say we are dealing with the following hypothetical scenario:T12 Actual Income: 1,000,000T12 Actual Expenses: 475,000T12 NOI: 52...

I have been watching coutless videos as well as articles about NPV and I am starting to wrap my head around the concept and what it is used for. Now from what I remember the equation goes as follows, Cash Flow / (1+ D...

hi, I am closing on my first property in May, which is a condo. I am eligible for rate of 4.125% at not additional closing costs, however I can purchase a lower rate (as low as 3.875%). I am conflicted about whether o...

Hi everyone, I am a beginning investor, studying hard each day and planning to purchase my first single family rental income property by the end of the year hopefully. I am currently studying books and videos to up my...

I know this is highly variable, but from what I read online the "average" discount rate for foreclosed properties is around 37%. What has your experience been in your local foreclosure market and where are you located? 

Hey guys,

I have a question regarding DCF analysis. I have previous experience in finance but I am not sure what to do with discount rates on real estate investments. In finance, you can calculate the cost of equity ...

Title says it all. How do you find a reasonable discount rate when doing a DCF analysis. Let's take an example where a value-add project is financed: 60% long-term debt. 4.00% 25-year amo. 5-year term.10% by a junior ...