Robert Schmidt

Discounted Cash Flow Analysis for Real Estate

Discounted cash flow analysis for real estate is widely used, yet often misunderstood. In this post we’re going to discuss discounted cash flow analysis for real estate and clear up some common misconceptions. As you follow along, you might also find this discounted cash flow analysis spreadsheet template helpful. Discounted Cash Flow Real Estate Model First, …

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The Real Estate Proforma

The first task in any real estate investment decision is to build a proforma, which is just a word that means cash flow projection. In this guide we will define the term proforma, look at an example of a simple real estate proforma, review a more complicated real estate proforma, and also discuss some nuances …

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Types of Commercial Real Estate

Commercial real estate can be broken down into several different categories. At a high level, when people think of different types of commercial real estate, they typically think about shopping centers, office buildings, or warehouses. But the commercial real estate industry is much more precise when it comes to defining property types. Below is a …

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Intuition Behind IRR and NPV

What’s the intuition behind Internal Rate of Return (IRR) and Net Present Value (NPV)? Discounted cash flow analysis is an essential tool in the commercial real estate practitioner’s toolbelt, but unfortunately for many people, there is still a lot of mystery surrounding this concept. First of all let’s get some definitions out of the way …

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Commercial Real Estate Careers

People will often say that they want a commercial real estate career, but quickly discover that “commercial real estate” is a vague job description and can literally mean dozens of different things. In this post we will discuss various commercial real estate career paths in order to better understand the major players and the structure …

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U.S. Employment Growth Trends by State – December 2012

Here is the December 2012 edition of our employment growth trends data. If you’d like to access more data like this, complete with interactive charts and graphs for every state, MSA, and county in the United States, sign up now for a free trial.

When Will Commercial Real Estate Fully Recover?

The recession officially ended back in 2009 and the economy has been growing ever since, yet it still feels like a recession to most people.  Why is this and how long will it take to get back to normal?  More importantly, what does this mean for commercial real estate?  First, let’s take a look at …

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