Real Estate Finance

Each group will write a recommendation letter regarding the property that they are considering using graphs, charts, tables, and text.
This should be considered a professional document, not academic.
All group members are responsible for ALL the content in the document.
Special attention should be made to ensure that the letter flows and is not several individual topics combined into a longer, but disjointed document.
The letter will contain:
the DCF calculations
a recommendation of how much to purchase the property for
a sensitivity analysis for the significant variables
an explanation of the selection of variables
an explanation of the assumptions used
the analysis performed
a description of the pros and cons that support the recommendation
The letter must be written using professional language and formatting.
The letter must be in PDF format and must include the necessary tables and calculations.
The text portion of the letter must not be more than ten pages. However, charts and tables should be incorporated and may make the overall length of the letter longer.
Additionally, one Excel file showing all the calculations and tables must be submitted.
Proper citation must be used.

This is a group project that requires each group to analyze an apartment complex that is available for sale. Each group will perform a 10-year discounted cash flow analysis (DCF) that will need to consider many differing factors. Depending on the property, there may be consideration of an assumable loan, section 8 units, rent control, or any number of other characteristics. Groups will be provided with a market overview that they may use in the analysis of the property.

Sample Solution