Chapter 1

Descriptive Statistics: The language of finance is twofold: statistics and accounting. This lecture exposes individuals to the basics covered in Statistics 101.

Discounted Cash Flow: Real estate modelling, at its core, is a quantitative representation of the cash flow(s) produced by an asset. Discount Cash Flow analysis is the quantitative valuation of these cash flows to a single value, i.e. Net Present Value/Internal Rate of Return.

Risk Return Portfolio: The mature method to analyze/value an asset, e.g. real estate, is not as a single-asset in a vacuum but rather as a contribution to an overall portfolio. True valuation is the marginal contribution of an asset when included or divested in a portfolio. Risk quantification and portfolio basic fundamentals are introduced.