Time value of money is one of the fundamental concepts in real estate
finance. TVM is based on the concept that a dollar that you have today
is worth more than the promise or expectation that you will receive a
dollar in the future. The reason for this is that money held today can
earn a return through investment so that you will have more than a
dollar in the future. This basic concept leads to the central components
of time value—present and future value. This relationship between
present and future value is why real estate investors must consider both
the timing of and the amount received from real estate investments.
While
financial calculators and spreadsheets can perform TVM calculations,
many people fail to understand the underlying concepts. Without a basic
understanding of the math, it is difficult to understand and interpret
the solution provided by those tools. And, equally important, it can be
nearly impossible to recognize when the answer is wrong.
Attendee Takeaways:
This webinar will provide an introduction to:
- the power of compounding by comparing simple and compound interest returns
- the valuation of cash flow streams, both constant and variable.
- the mathematics of TVM in order to provide a foundation for understanding the numbers
- a simple introduction to working TVM problems in Excel
Who Should Attend
This course is designed for those who work in real estate in the fields of:
- property management
- brokerage
- development
- finance
- local government
- urban planning
Date Presented:
January 12, 2012 1:30 PM Eastern