If you appraise real estate which is normally purchased with a combination of debt and equity capital and you are not inputting the specific terms of the proposed financing- then you are probably not developing an accurate valuation. My Mortgage-Equity Software provides a proof showing the resulting value accurately produces your stated returns for both debt and equity capital.
Simply; If you develop a 5 or 10-year projection of Net Income and the lender and equity investors require specific financing terms and assumptions, there is only one value will produce the desired returns to the debt and equity components. My software is the only software on the market that will produce this value.
For the last 30 years real estate appraisers have been using DCF models that assume an all cash buyer. We know most real estate in the United States is financed with a certain amount of debt. If this is the case- shouldn’t you be using a mortgage-equity model with specific financing inputs rather than “pulling an overall discount rate out of the air?"
Because this DCF software is the best product on the market, along with the fact that every book and seminar I produced for the AI was done for free, I offered to provide the AI with free software distribution rights and was turned down! Probably because the concept of the mortgage-equity DCF approach was too radically different from the DCF with an overall discount rate.