Discounted Cash Flow Analysis (DCF) in Real Estate Explained // In commercial real estate, the discounted cash flow (DCF) analysis is at the core of property valuations for the vast majority of real estate investors, but because of how real estate deals are typically financed (especially by major private equity firms), the way this is applied in practice often isn't all that straightforward. And especially since this is one of the most common technical topics that tends to come up within commercial real estate interviews, in this video, I want to break down exactly what a discounted cash flow looks like in the context of a real estate deal, and how this comes into play when investors value a commercial property. 💻 TRAINING & COURSES 💻 Enroll in the FREE Break Into CRE Real Estate Financial Modeling Crash Course here: https://www.breakintocre.com/free-crash-course Enroll in any Break Into CRE course here: https://breakintocre.com/courses/ Get access to all Break Into CRE courses, all models, and additional one-on-one support with a Break Into CRE Academy membership: https://breakintocre.com/the-academy **💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰 EquityMultiple: https://equitymultiple.4drrzr.net/c/2975738/751081/10943 Crowdstreet: https://crowdstreet.4cl7.net/c/2975738/592761/9753 RealtyMogul: https://realtymogul.pxf.io/c/2975738/1008102/13202 ** 📰 MY FAVORITE REAL ESTATE NEWSLETTER 📰 Thesis Driven (20% off a paid subscription): https://www.thesisdriven.com/breakintocre ** 🏬 RESIDENTIAL RENT DATA & ESTIMATES 🏬 RentCast: https://rentcast.io/?via=breakintocre 🕒 Timestamps 🕒 0:00 Introduction 0:45 Defining the DCF 3:36 The Math 7:23 Putting It All Together How To Choose a Discount Rate: https://www.youtube.com/watch?v=Gc1WhXP4b6k #realestatecareers #commercialrealestate *Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions. **AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account.