Staiger - 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 to include information on:

• Amortization
• Single-Family Unit
• Multifamily 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 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, LLC, a global advisory firm in real estate financial modelling, portfolio management and asset repositioning. He holds faculty positions at George Washington University, Georgetown University and Johns Hopkins University. He has held many senior positions including Managing Director for Constellation Energys Retail Commodity Division and CFO for Americas Best Builder 2006.

www.routledge.com/cw/staiger

Foundations of Real Estate Financial Modelling

Roger Staiger

First published 2015
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

and by Routledge
711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

2015 Roger Staiger

The right of Roger Staiger to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data
Staiger, Roger P., III.

Foundations of real estate financial modelling / Roger Staiger.

pages cm

Includes bibliographical references and index.

1. Real estate investmentMathematical models. 2. Real estate investment

FinanceMathematical models. 3. Real estate developmentFinance

Mathematical models. 4. Real propertyFinanceMathematical models. I. Title.

HD1382.5.S72 2015
332.6324015118dc23
2014042657

ISBN: 978-1-138-02516-5 (hbk)
ISBN: 978-1-138-02517-2 (pbk)
ISBN: 978-1-315-77532-6 (ebk)

Typeset in Times New Roman
by Apex CoVantage, LLC

I would like to express my sincere gratitude to the many people who helped me author this book over the past two tumultuous years of my life a period which saw my father die under suspicious circumstances and resulted in a will caveat. This ended with a unanimous jury verdict finding that his will was forged and not duly executed. (This will be the subject of a different book.)