How do I determine a reasonable discount rate? Can I use the cap rate? I am trying to calculate the IRR on a few different investment options. Thanks.

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...

I understand that discount rate is the anticipated Return or the cost of debt. If i expect 10% return, and I am borrowing 65% of the  total investment at 5%, how do I enter the discount rate?  Am I thinking incorrectl...

Hello BP,When are interest rate discount points considered, during closing or "rate lock"? 

Something that has always made me curious is the discount rate real estate investors use in their DCF analysis. If you are a buy and hold investor, due you use the stock market average (e.g. S&P500, index fund, et...

Hi, I am new to the concept of holding notes as I am contemplating offering my property with seller finance. I have a property I would like to sell for 30k. If I were to receive money down of say 10k (probably less) ...

Hey guys,New to real estate investment. I am trying to wrap my head around into discount rate.I find this online calculator (https://www.mtgprofessor.com//calculators/Calculator11a.html) which will take tax, opportuni...

Hello,Newbie here that is just in the information gathering stage. I'm reading Frank Gallinelli's Cash Flow book and had a question about calculating the Net Present Value for future cash flow's. If I understand the c...

Discount rates and capitalization rates (cap rates) are two fundamental concepts in commercial real estate (CRE) analysis. They both play a crucial role in determining a property's value, but understanding the nuances...

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 ...