Real Estate Analyst Interview Question:

Walk me through a DCF?

Submitted by: Muhammad

This is a short answer, but basically a DCF is a way to project out future cash flows and discount those CF's back to present value. You are saying that this property is something that is going generate income (while having operating expenses) over some period of time fluctuating with market conditions, and that this potential needs to be taken into consideration when valuing the building.
Submitted by: Muhammad