Dcf presentation

A good idea implemented poorly is a bad idea.

Don't believe your assumptions are perfect. They never are.

DCF is the best method available to value real estate.*

If used properly!

*Focus on concept; not on formula.

Stoneridge Apartments31544 Freedom Road, Farmington Hills, MI 48336

Price: $2,050,000

No. Units: 96

Building Size: 80,400 SF

Price/Unit: $21,354.17

Property Type: Multifamily

Property Sub-type: Garden/Low-Rise

Property Use Type: Investment

Commission Split: 2%

Cap Rate: 10.05%

Gross Rent Multiplier: 3.35

Occupancy: 96%

No. Stories: 3

Year Built: 1978

100 Unit Apartment For Sale22300 Englehardt, Saint Clair Shores, MI 48080

Price: $3,950,000

No. Units: 100

Building Size: 60,000 SF

Price/Unit: $39,500

Property Type: Multifamily

Property Sub-type: Garden/Low-Rise

Property Use Type: Investment

Cap Rate: 9.70%

Occupancy: 100%

No. Stories: 2

Year Built: 1958

Farmington West Apartments32777 Grand River, Farmington, MI 48336

Price: $2,500,000

No. Units: 48

Building Size: 40,736 SF

Price/Unit: $52,083.33

Property Type: Multifamily

Property Sub-type: Garden/Low-Rise

Property Use Type: Investment

Commission Split: 1%

Cap Rate: 8.34%

Occupancy: 97%

No. Stories: 2

Year Built: 1964

Case Studies

Stoneridge Apts

EnglehardtFarmington

W estLocation Farm ington S t C lair S hores Farm ingtonYear Built 1978 1958 1964No. of Units 96 100 48Building Size 80,400 60,000 40,736Price $2,050,000 $3,950,000 $2,500,000Price/ Unit $21,354 $39,500 $52,083CAP Rate 10.05% 9.70% 8.34%% Occupied 96.00% 100.00% 97.00%No. of Stories 3 2 2

Discounted Cash Flow Analysis

Local Trends

Real Estate Trends

Economic Expectations

Competitor Expectations

Know Return Desired

Know the future

Knowledge Needed of Property

Knowledge Needed From Outside

Property Tax Info & LawsReview of LeasesFinancing AlternativesOperating StatementsCapital Needs Assessment

Zoning ComplianceMarket Rental Rates

On & On & On & On.........On & On & On & On.........

E$timated Value

"Not everything that counts can be counted, and not everything that can be counted counts."

(Sign hanging in Einstein's office at Princeton)