How To Get The Best Rental Accommodation In The Area By Using ‘Your Capital’
money you give them can earn them an amount of money, and we’ll call that ‘interest’ – just like the bank. This is just one concept I want you to lock away.
That concept has been given to you so that you can see, or understand, my next concept of DCF.
Imagine writing across a page a whole string of $230, $230, $230 etc for every week you would normally have to pay that rent; 52 times or 104 times.
Now imagine discounting the 52nd $230 by an interest rate of whatever; say 5% for 52 weeks. Then the next $230 is discounted by 5% for 51 weeks and so on until you get back to zero weeks. Having done all these calculations and then add them up you arrive at a $value of all those Cash Flowed $230′s for 52 weeks or for any other period.
I have not done the calculation for
