Real Estate Investment Analysis and Valuation Guide
Table of Contents

1.0 Introduction
2.0 Economics of Real Estate Development
3.0 Investment Analysis Tools
3.1 Static (non cash flow) Analyses and Tools
3.2 Dynamic (cash flow) Analyses and Tools
4.0 Building Blocks of Investment Analysis
4.1 Simple versus Compound Interest
4.2 Present Value of Future Cash Flows
4.3 Net Present Value
4.4 Internal Rate of Return (IRR)
4.5 Project Financing
4.5.1 Land Loans
4.5.2 Construction Financing
4.5.3 Take-Out Financing
4.6 Valuing Income Producing Real Estate
4.7 Risk, Profit and Yield on Investment
4.8 Calculators and Computer Programs
5.0 Developer Proformas – Standard Format (non DCF)
5.1 Residential Subdivision
5.2 High Rise Residential Condo
5.3 Office/retail
6.0 Developer Proformas – Discounted Cash Flow Format
6.1 Residential Subdivision
6.2 Office/retail
7.0 Quick Analyses
7.1 Quick Analysis for Condo Development
7.2 Quick Analysis for Office/retail Development
8.0 Residual Land Valuation
8.1 Static or Non Cash Flow Approach
8.2 Discounted Cash Flow Approach
9.0 Investment Analysis from a Government Perspective
10.0 Public Private Partnerships
10.1 Range of Partnerships
10.2 Traditional P-3 Arrangements to Provide Government Facilities
10.3 Examples of Partnership Relationships
11.0 Excel Valuation and Investment Analysis Templates
11.1 Valuation Templates
11.2 Investment Analysis Templates

Appendices
A Determining Net Present Value
B Determining Internal Rate of Return
C Investment Analysis, Single Family Subdivision
D Investment Analysis, High Rise Residential Building
E Investment Analysis, Office Building
F Investment Analysis, Phased Residential Subdivision
G Residual Land Value, Office Building
H Using the Course Diskette
I Evaluation of Industrial Park, Rural B.C.
J P-3 for Municipal Recreation Development
K Types of P-3’s
L Glossary of Terms