The document discusses real estate valuation using the case study method and discounted cash flow analysis. It provides details on three multifamily properties for sale, including their prices, number of units, occupancy rates, cap rates, and other information. It stresses the importance of focusing on concepts rather than formulas, and of gaining in-depth knowledge of the property and local market conditions to properly value real estate.

1. Real Estate Valuation MICROLEVEL Case Study Method

2. “ Albert Einstein when asked what he considered to be the most powerful force in the universe answered: Compound interest!” Mignon McLaughlin

3. 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.

7. Case Studies

8. 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 & Laws Review of Leases Financing Alternatives Operating Statements Capital Needs Assessment Zoning Compliance Market Rental Rates On & On & On & On......... On & On & On & On......... E $ timated Value

9. "Not everything that counts can be counted, and not everything that can be counted counts." (Sign hanging in Einstein's office at Princeton)