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1 vote

Welcome on board Jerad;

A model can be created to take care issues like set-backs, parking, height restrictions, etc. Obviously it will be a complex model as compared to what I have put in the product mix optimisation post.

If you can provide me more details with exact variables, I will see if I can do something.

Cheers!!

1 vote
In reply to: Feasibility Study

All major real estate consulting firms are present in DC Metro area. Check the following links for the contact details in DC area:

http://www.cbre.us/o/washingtondc/Pages/washington-dc-commercial-real-estate.aspx

http://www.colliers.com/en-us/washingtondc

http://www.jll.com/washington-dc/en-us

0 votes

First and foremost, use hedonic pricing method in order for you to give an outlook of what are really the attributes of the apartments and how much it’s value in the market. After then, you can present it to your clients or actual renters so that they will know what they will get upon renting the apartments. In your side, you should be keen and wise enough to market your apartments. Don’t deal with brokers, they work for commissions and it may take time to get actual renter because of the charges/commissions they put up.

0 votes

Scott, thanks for asking this.

You are not able to signup because the courses are not launched yet.

I will send you an email soon informing the launch and signup details.

Cheers!

0 votes

Thanks for the response Naiyer, much appreciated.

Are you please able to give me an estimate time frame of when it will be launched? I won’t hold you too it 🙂 I’m just looking for an indication. This month/next month/end of the year/ next year?

Thanks

Scott

0 votes

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0 votes

Donna; I’m glad that you found my blog useful.

Nominal cash flow does not include inflation. Cash flow adjusted for inflation is real cash flow.

Internal rate of return (IRR) is independent of inflation. The term internal refers to the fact that its calculation does not involve external factors, such as inflation or the cost of capital.

However, for the calculation of net present value (NPV) we can use either nominal method or real method. The website you mention talks about using discount rate to calculate NPV for PPP projects. More information on NPV calculation using nominal / real method could be found at http://accountingexplained.com/managerial/capital-budgeting/npv-and-inflation.

 

0 votes
In reply to: Sensitivity analysis

For DCF valuation I would consider rent and occupancy as two main variables, then do a two-way analysis as shown in below image.

 

In the image, the impact of construction cost and rent are assessed on IRR. You could do a similar table for rent and vacancy and assess its impact on the value.

You should probably also consider few other variables for sensitivity analysis depending on the context of the valuation.

The problem with Excel in-built sensitivity analysis is that both the input and output should be on the same sheet, otherwise it doesn’t work. And it is not advisable to build real estate valuation model in one sheet.

Hope this helps.

0 votes

Could you give an example Ann? I will also advise to check https://feasibility.pro/can-equity-irr-lower-project-irr/.

Hope this helps.

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