Discounted Cash Flow 101

Lets’s explain the Discounted Cash Flow (DCF) analysis through a flowchart. I love this flowchart because it is SO dang confusing. It looks more like an engineering schematics.


This is a diagram detailing a DCF analysis—a method for estimating the value of an investment based on its future cash flows (incoming and outgoing). It seeks to answer two questions:

1. What’s the thing’s value today based on how much money it will generate down the road?

2. Does it make sense to buy the thing?

We perform this and more analyses before purchasing each mortgage Note.

To be fair, a lot goes into a DCF analysis; the diagram isn’t wrong, necessarily, it’s just hard to look at (no offense to the creator).

Call 844-433-6683 or email to sell your mortgage Note or request a consultation at




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