Foundations of Real Estate Financial Modelling

The third edition of Foundations of Real Estate Financial Modelling is a comprehensive guide to building and understanding real estate pro forma models, with case studies and problem sets to provide hands-on practice. It employs the innovative financial metric P(Gain) to quantify the probability of a Return of Capital and is organized in three functional units: Real Estate Valuation Basics, Theory, and Skills, Real Estate Pro Forma Modelling, and Real Estate Pro Forma (Enhancements).

Format: Hardback
Length: 550 pages
Publication date: 28 July 2023
Publisher: Taylor & Francis Ltd

Staiger's Foundations of Real Estate Financial Modelling is a comprehensive guide that provides students and professionals with the essential tools to build robust pro forma modeling for real estate assets. Recognized as one of the best commercial real estate books by The Motley Fool, this third edition has been updated and revised to cater to a new generation of investors and practitioners. With a focus on increasing the scalability of pro forma modeling, the book offers a step-by-step introduction to constructing and understanding the models underlying investments in properties, ranging from single-family rentals to large-scale developments.

Throughout the book, real-world case studies drawn from the author's extensive investment career bring models to life and provide practical insights. Each chapter concludes with problem sets that allow learners at any stage of their real estate careers to apply the concepts learned.

One of the key features of this edition is the introduction of the innovative financial metric P(Gain), which quantifies the probability of a Return of Capital. This metric is crucial in answering the fundamental question of investing: What is the likelihood of getting my money back?

The book is organized into three functional units: Real Estate Valuation Basics, Theory, and Skills; Real Estate Pro Forma Modelling; and Real Estate Pro Forma Enhancements. These units cover a wide range of topics, including interest rates, amortization, ADC (Acquisition, Development, Construction) Module, Rent Roll Module (including seasonality), Waterfall, Hotel Consolidation, Stochastic Modelling and Optimization, and risk quantification.

In addition to its comprehensive coverage, the book also includes additional chapters dedicated to scenario analysis, stochastic modeling, and optimization. These chapters provide valuable tools for investors and practitioners to assess the potential risks and uncertainties associated with real estate investments.

Overall, Foundations of Real Estate Financial Modelling is an essential resource for students, professionals, and investors seeking to enhance their understanding of real estate financial modeling and make informed investment decisions. With its comprehensive content, real-world examples, and practical applications, this book is guaranteed to be a valuable asset throughout one's commercial investing career.

Dimension: 254 x 178 (mm)
ISBN-13: 9781032458106
Edition number: 3 ed