Foundations of Real Estate Financial Modelling
- Available for pre-order on March 28, 2023. Item will ship after April 18, 2023
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NAMED ONE OF THE BEST COMMERCIAL REAL ESTATE BOOKS BY THE MOTLEY FOOL
"Staiger gives us the technical tools needed to build robust pro forma modeling around our real estate assets." –MillionAcres
Now in its third edition, Foundations of Real Estate Financial Modelling equips a new generation of students and professionals with a resource MillionAcres guarantees they’ll "use throughout [their] commercial investing career[s]". Designed to provide increased scalable basis of pro forma modelling for real estate projects, this complete update and revision of the classic text offers a step-by-step introduction to building and understanding the models underlying investments in properties from single family rentals to large-scale development. Case studies drawn from the author’s storied investment career put models into real world context while problem sets at the end of each chapter provide hands-on practice for learners at any stage of their real estate careers. This edition employs the innovative financial metric P(Gain) to quantify the probability of a Return of Capital, ensuring readers’ ability to answer the most fundamental question of investing—What is the probability I’ll get my money back?
The fully revised and enhanced third edition is organized in three functional units: (1) Real Estate Valuation Basics, Theory and Skills, (2) Real Estate Pro Forma Modelling, (3) Real Estate Pro Forma (Enhancements). Chapters cover:
- Interest Rates (Prime, Libor, Sofr)
- Amortization (Cash-Out Refinance modelling)
- ADC (Acquisition, Development, Construction) Module
- Rent Roll Module (including seasonality)
- Hotel Consolidation
- Stochastic Modelling and Optimization
Additional chapters are dedicated to risk quantification and include scenario, stochastic and Monte Carlo simulations, equity waterfalls, and integration of U.S. GAAP financial statements. A companion website provides the real estate pro forma models to readers as a reference for their own constructed models, www.pgainllc.com.
An ideal companion in the classroom and the boardroom, this new edition of Foundations of Real Estate Financial Modelling will make even novices the "experts in the room on [their] chosen asset class" (MillionAcres).
Table of Contents
1. Real Estate Basics 2. Asset Valuation Defined, Characterized and Visualized. 3. Interest Rates 4. Amortization 5. Single-Family Rental (Single Sheet) 6. 5 - Unit Multifamily 7. "N"-unit Rent Roll 8. ADC (Acquisition, Development, Construction) 9. Waterfall Structure 10. N-Unit For Sale. 11. Hotel Asset 12. Accounting Statement(s) 13. Stochastic Modeling (Crystal Ball) 14. Optimization (OptQuest) 15. Closed Architecture Modelling + P(Gain)
Roger Staiger is an investor, author, and philanthropist. He is the owner of P(Gain), LLC, an international real estate investment and advisory firm that develops, owns and manages real estate and operating businesses in the Washington DC metropolitan area and the Caribbean. His previous roles include Managing Director for a Fortune 500 Energy Company’s commodity division, CFO for America’s Best Mid-Sized Builder 2006, and a Senior Portfolio Manager for a large, commingled pension fund in New York. Mr. Staiger currently holds faculty positions in the real estate departments at John Hopkins University, University of Notre Dame and Auburn University. In addition, he is also a faculty member in the MS Finance Program at The George Washington University.