This eBook+ version includes the following enhancements:

• Pop-up definitions for key terms


• Exercises to test your knowledge


• Case studies from top real estate professionals


• A companion website with full real estate pro forma models

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:

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  Interest Rates (Prime, Libor, Sofr)

  
  

  Amortization (Cash-Out Refinance modelling)

  
  

  ADC (Acquisition, Development, Construction) Module

  
  

  Rent Roll Module (including seasonality)

  
  

  Waterfall

  
  

  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).