Foundations Of Real Estate Financial Modelling 2nd Edition

Introduction

Real estate financial modelling is essential for investors who want to make informed decisions on their investments. The Foundations of Real Estate Financial Modelling 2nd Edition is a comprehensive guide for anyone who wants to learn how to model real estate investments accurately. The book provides a step-by-step guide on how to create financial models that can help investors make informed decisions.

Overview of the Book

The book is divided into three parts. The first part covers the basic concepts of real estate financial modelling. The second part provides a detailed explanation of how to build a financial model from scratch. The final part of the book covers advanced topics such as sensitivity analysis and scenario analysis.

Part One: Basic Concepts

The first part of the book covers the basic concepts of real estate financial modelling. It explains the fundamental concepts of real estate such as cash flow, net operating income, capitalization rates and internal rate of return. It also provides an overview of the different types of real estate investments such as residential, commercial and industrial properties.

Part Two: Building a Financial Model

The second part of the book provides a detailed explanation of how to build a financial model from scratch. It covers the different types of financial models such as discounted cash flow models, capitalization rate models and net present value models. It also explains how to create assumptions and inputs for the model.

Part Three: Advanced Topics

The final part of the book covers advanced topics such as sensitivity analysis and scenario analysis. Sensitivity analysis helps investors to understand how changes in variables such as occupancy rates and rental rates can impact the performance of the investment. Scenario analysis helps investors to understand how different scenarios such as economic downturns or interest rate hikes can affect their investments.

Conclusion

In conclusion, the Foundations of Real Estate Financial Modelling 2nd Edition is an excellent resource for anyone who wants to learn how to model real estate investments accurately. The book provides a step-by-step guide on how to create financial models that can help investors make informed decisions. With this book, investors can make better investment decisions and maximize their returns.

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