This tutorial walks you through how to do Monte Carlo simulations in Excel without using third-party add-ins.

The tutorial is done from the perspective of a commercial real estate professional, modeling the expected value of an apartment building, but the concepts covered are transferrable to other scenarios as well.

00:00 - Introduction
01:08 - Framing the Investment Scenario
02:29 - Building the Initial Discounted Cash Flow (DCF)
06:11 - Adding Probability to Assumptions
09:41 - Running the Monte Carlo Simulation
12:30 - Analyzing Simulation Results
16:00 - Visualizing the Simulation Distribution

To download the file used in this tutorial, visit: http://www.adventuresincre.com/run-mo...

For other free Excel tips and tutorials, visit: http://www.adventuresincre.com/catego...

To learn more about the author, go to: http://www.spencerburton.org