This manual is organized into seven sections each relating to investment analysis of commercial real estate:
- Section One introduces the concepts used in investment analysis.
- Section Two demonstrates how to use a financial calculator to analyze investment properties.
- Section Three teaches the concept of the Time Value of Money and introduces the TVM Grid to analyze investments.
- Section Four illustrates both the Cash Flow Model and the Discounted Cash Flow Model and how each is used when analyzing properties.
- Section Five presents how to prepare a property financial projection for one year and five years.
- Section Six demonstrates how to calculate the gain or loss on sale.
- Section Seven introduces the concepts of Internal Rate of Return (IRR) and Net Present Value (NPV) and demonstrates how each is used when analyzing investment properties.