Discounted Cash Flows in Real EstateCornell Course

In this course, you will gain an overview of real estate financial modeling, focusing on properties with multi-year leases. Using the models and frameworks established as today's industry standards in real estate, you will explore deriving basic valuations and performance calculations. You'll discover how a discounted cash flow model can be used to deliver sound real estate investment and financial decision-making through hands-on practical exercises.

As part of this process, this course will introduce the various Excel functions required to develop dynamic models to assist decision-makers. To be successful, these tools must be simple to use and interpret, must offer realistic outcomes to complex hypothetical real estate situations, and must be capable of handling a wide range of scenarios. High-stakes decision-making requires a comprehensive understanding of the options and their associated risk. Therefore, the first step is to adopt best practices then apply the essential building blocks in Excel that will be covered in this course, creating a foundation for your future work in this area.

In this course, the professor uses Microsoft Excel for Windows for all videos and exercises which is different from Microsoft Excel for iOS. If you are a Mac user, we strongly encourage you to download Parallels or an equivalent virtual machine that is compatible with Microsoft Excel in the Windows environment.