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This is the second course in the 16-course Accelerator. In this case-based course, you will learn to value income-producing real estate using the Discounted Cash Flow model.

This course builds on the concepts and case study used in the previous course, The Direct Cap Method to Valuing Real Estate, to teach you the Income Approach valuation method.

In this course you will:

  1. Review the principal of time value of money; how the present value formula, net present value formula, discount rate, and internal rate of return are commonly used in real estate
  2. Learn how to take your static real estate pro forma from the previous course, and grow income and expenses over an established period of time at market appropriate rates
  3. Combine your investment cash flows (acquisition cost), operating cash flows, and reversion (sale) cash flows into a net unlevered cash flow line
  4. Calculate and interpret the internal rate of return and equity multiple of the net unlevered cash flow line


You have recently been hired by A.CRE Advisors as part of their multifamily underwriting team. Your boss has called you back into his office to further discuss the Offering Memorandum (“OM”) you’re reviewing from a broker, East Lang Ellis, for Foles Tower – a 300 unit, Class A, multifamily high rise in Center City, Anytown.

After putting together some basic back-of-the-envelope analysis using the information provided in the OM and the supplemental documents that have been uploaded to the broker’s “War Room”, your boss is now requesting you dive a bit deeper and run a 10-year discounted cash flow to further evaluate the opportunity.

The first round Call for Offers is due in seven days. Your boss would like to have this model asap to review internally so you both can be prepared to reach out to potential capital partners in the coming days to discuss pricing before the first-round submission.


  • Multifamily; concepts apply to all property types


  • While we recommend using Microsoft Excel, as that is the industry standard, this course will work with most other spreadsheet software such as Google Sheets and OpenOffice Calc
  • This course was built using the Google Chrome browser, thus we recommend you use Google Chrome for optimal view experience
  • This course is best taken on a desktop computer, although the platform is compatible with tablet and mobile devices


  • The course assumes you have at least a basic proficiency working with Microsoft Excel


User Avatar Michael Belasco

Michael Belasco has over eight years of real estate and construction experience. He currently works for a global real estate investment, development, and asset management firm in San Francisco managing large scale development projects in the city. Michael has both an MBA and Master in Real Estate with a concentration in Real Estate Finance from Cornell University.