Something I’m often asked about by those I mentor and by investors is how I setup the calculations for accurately determining commercial real estate investment decisions.

Short of telling you to take the CCIM courses to learn everything you need to know in commercial investing, reading this article by Donald J. Valachi found on the Commercial Investment Real Estate’s online edition will help you with most of the basic principles.

Excel at Financial Analysis Calculations
Spreadsheet Software Can Help You Calculate Discounted Cash Flow Measures of Value and Return.

CIRE online states the article is one of the most viewed of their entire site’s archives. I believe it!

The article spells out how to calculate Net Present Value and how to calculate the Internal Rate of Return as well as the Modified Internal Rate of Return. It also walks you through step by step setting these calculations up in Excel.

To view the full article, visit http://www.ciremagazine.com/article.php?article_id=1084  

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