Discount Rate

« Back to Glossary Index

The rate at which future cash flows are discounted and then added together to create a present value in a discounted cash flow (DCF) model. In real estate valuation models, the discount rate can be interpreted as the Cap Rate plus expected NOI growth, representing the income and growth components of total required rate of return respectively.

« Back to Glossary Index

Submit a Financing Request

Secure favorable term sheets for your real estate project