How calculate present value of investment?

I have a partnership investment I inherited -- I never have looked very carefully into it. Also, the partner is another family member, so I have basically left it all to trusting the general partner.

Now I want to sell and think I am being cheated of the fair value of the investment. The partnership holds the notes on the financing of real estate. How do I calculate present value of this investment.

I remember from college that there were formulas for calculating present value of a steady stream of future income. The thing is that this is not a certainty that this is a steady stream. People can default on their mortgage, or pay it all ahead of schedule if they refinance.

Is there an easy way of calculating PV without hiring an accountant?

calculating the PV is easy to do in microsoft excel. the problem is estimating the stream of cash flows. it doesn't have to be a steady stream, you can calculate PV based on variable streams, but you will have to estimate how much you will make each year, or at least the next couple years, then estimate an average amount you expect to make per year from there on out.

if you hire an accountant, he will make these estimations, so its not like he is doing anything that you can't, except his estimations might be better.

you may want to use Net Present Value (NPV) because it takes into account uneven or inconsistent cash flows. you can use a scientific calculator like an hp-12c or try http://www.datadynamica.com/IRR.asp. the number you get will give a fair value of the investment based on an assumed discount rate ( i would use inflation as a conservative estimate) good luck!

you have to find the year to date value first...then you could calculate assets+liabilities= profits...you must find out what the % rate is or was on the payment...is the land or waterver inheritead paid off...? you must come in a mutal agreement,,its better if you consulted ur local real estate broker or a Realestae LAwyer....

Check out this link to Wikipedia's page on present value. http://en.wikipedia.org/wiki/Present_val...
You can also search for Net Present Value or IRR if you want some other ideas on how to value your investment. If you have some idea of your future cash flows for the next 5 or 10 years, you should be able to calculate a PV. Good luck!

You can purchase an inexpensive financial calculator. HP makes a few models that are under $100. Or you can get a similar answer at the following address:
http://www.noteworthyusa.com/calc.asp

Enter all of the fields except for PV then press the = sign next to PV to calculate Present Value.

Good luck,
Peter K

NPV is the difference between the present value (PV) of all future cash flows produced by a rental property and the amount of cash investment (or, initial investment; i.e., down payment and closing costs) required to purchase the property. For example, let's assume that the real investor desires a 10% yield on all future cash flows, must invest $100,000 cash to purchase the rental property that might produce those cash flows, and wants to know whether the price he will pay achieves his desired yield. He would calculate NPV.

Here's how it works
First, all future cash flows would be discounted back at 10% to determine the present value of those cash flows. Secondly, the $100,000 initial investment would be deducted from the PV. The difference between the two is the NPV. For example, if the present value winds up equaling $110,000, the $100,000 would be subtracted to determine a net present value of $10,000 ($110,000 - 100,000 = 10,000). Whereas, if the PV calculates at $90,000, the NPV would be -$10,000 ($90,000 - 100,000 = -10,000).

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