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: http://www.adventuresincre.com/video-tutorial-using-the-monte-carlo-simulation-module/
Check out our entire Library of Real Estate Excel Models at: http://www.adventuresincre.com/library-of-real-estate-excel-models/
To learn more about the author, visit: http://www.spencerburton.org