Foundations of Real Estate Financial Modelling 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. Foundations of Real Estate Financial Modelling is specifically designed to provide an overview of pro forma modelling for real estate projects. A recurring theme in the book is the idea that real estate is an asset with unique characteristics which can be transformed, both physically and financially.
Individual chapters are separated by functional unit and build upon themselves to include information on:
- 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.