Foundations of Real Estate Financial Modelling

Foundations of Real Estate Financial Modelling is specifically designed to provide an overview of pro forma modelling for real estate projects. The book introduces students and professionals to the basics of real estate finance theory before providing a step-by-step guide for financial model construction using Excel. The idea that real estate is an asset with unique characteristics which can be transformed, both physically and financially, forms the basis of discussion.

Individual chapters are separated by functional unit and build upon themselves. Chapters include:

• Amortization

• Single-Family Unit

• Multi-Family Unit

• Development/Construction Addition(s)

• Waterfall (Equity Bifurcation)

• Accounting Statements

• Additional Asset Classes

Further chapters are dedicated to risk quantification and include scenario, stochastic and Monte Carlo simulations, waterfalls and securitized products. This book is the ideal companion to core real estate finance textbooks and will boost students Excel modelling skills before they enter the workplace. The book provides individuals with a step-by-step instruction on how to construct a real estate financial model that is both scalable and modular.

A companion website provides the pro forma models to give readers a basic financial model for each asset class as well as methods to quantify performance and understand how and why each model is constructed and the best practices for repositioning these assets.

Roger Staiger (FRICS) is Managing Director for Stage Capital Group, LLC, a global advisory firm in real estate financial modelling, portfolio management and asset repositioning. He holds faculty positions in the real estate departments at Georgetown and Johns Hopkins University. Mr Staiger also holds a faculty position at George Washington University in the MS Finance programme. Professionally, Roger has held many senior positions including Managing Director for Constellation Energy’s Retail Commodity Division and CFO for America’s Best Builder 2006. Academically Roger has earned a degree in BS Electrical Engineering, MBA Investments, MA International Transactions and MS Finance.