Video Tutorial - Apartment Acquisition Model with Monte Carlo Simulation Module

A stochastic real estate model. I've built a Monte Carlo simulation module and included it in one of my apartment acquisition models. This video gives a brief overview of how to use the module.
00:00 - Introduction and Background
02:19 - Probability in Assumptions
04:48 - Example: Rent Growth Probability
06:56 - Running the Monte Carlo Simulation
09:53 - Practical Application of the Model
11:00 - Simulation Progress and Completion
13:19 - NPV and IRR Comparison
14:24 - NPV Probability Analysis
15:45 - Risk-Adjusted Return Metric
16:07 - Distribution Graphs
If you'd like to download the free model, visit: www.adventuresincre.com/video-...
Check out our entire Library of Real Estate Excel Models at: www.adventuresincre.com/librar...
To learn more about the author, visit: www.spencerburton.org

[@dkhary1010]

you explain this very well.........

[@mbonisindimande5045]

Can you use this method on a levered Investment?

[@richieg.3192]

So, If you have calculations turned to automatic, does it just sit there and change the property matrics portion of the property summary tab over and over?

[@adventuresincre]

Yes - and will REALLY slow down your workbook!

[@richieg.3192]

@@adventuresincre TY!

[@faisalibrahim2297]

Analyst tend to use a 75%-90% probability of success as a rule thumb