Fundamentals of Property Financials

by Jeffrey D. Fisher, Ph.D.

This webinar will discuss the typical ingredients in the financial analysis of a real estate income property.  The focus will be on understanding the calculation of the NOI that is valued with a capitalization (cap) rate as well as the projection of cash flow and resale proceeds used to value a property by discounted cash flow (DCF) analysis.  These concepts are applicable whether the valuation is done in a spreadsheet or software such as RealNex Market Edge or ARGUS Valuation DCF.

Topics:

  • Calculating NOI
  • Estimating value with a cap rate
  • Projecting NOI and Resale Proceeds over a holding period
  • Estimating value by discounting cash flows (DCF Analysis)
  • Example using Excel and RealNex Market Edge

Jeffrey D. Fisher, Ph.D. is a Director of RealNex and Professor Emeritus of Real Estate at the Indiana University Kelley School of Business.  He is a coauthor of Real Estate Finance and Investments, 15th edition published by McGraw-Hill and Income Property Valuation, 2nd edition published by Dearborn.  He has helped develop courses for the Appraisal Institute, the CCIM Institute, the National Council of Real Estate Investment Fiduciaries (NCREIF) and other organizations.  Dr. Fisher has consulted with companies like ARGUS, Real Capital Analytics and Yardi.