Financial modeling for real estate requires forecasting out the entire development and operation of an income-generating property. The model includes the capital costs to acquire land, the cost of construction for the building, the sales (absorption rate) of the units, the marketing expenses, and other costs associated with the project. Key terms in real estate include net operating income (NOI), Cap Rate, and Internal Rate of Return (IRR).
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In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
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