Can anyone suggest a book where I could learn real estate valuation and modelling? I am trying to create a model in Excel, but I do not know how to start. Thanks in advance.
Carlton Sheets is the only name you need to know. Seriously, though, are you looking at buying properties? What type of real estate?
XSellSide, Buying properties and buying stakes in real estate developing companies. Do you have any suggestion?
There you go: http://www.stern.nyu.edu/~adamodar/pc/reval.xls
Dinamo Wrote: ------------------------------------------------------- > Can anyone suggest a book where I could learn real > estate valuation and modelling? I am trying to > create a model in Excel, but I do not know how to > start. > Thanks in advance. You might as well ask for a book on quant trading methods, or private equity. They don’t exist. The environment changes too rapidly to support any long-lived winning strategies. RE transactions are straightforward to model, and competing bidders come up with largely the same valuation of an asset except for one very important number: cap rate. It becomes a game of chicken at this point. Doing well in RE requires ability to find undiscovered value. E.g. applying government tax credits in a novel way to reduce funding cost. E.g. taking on undesirable projects (poor neighborhoods, etc.) and devising inventive ways to increase value of the asset. And so on. It’s sort of at the opposite end from pricing exotic derivatives – all the quant expertise and modeling subtleties won’t improve your ability to profit in RE. We had a textbook for our RE class; the professor never assigned a single reading from it. It’s a good field for learning by case study – recent case study.
Try Argus (broker) version if you do not need much sophistication in your analysis.
Thank you all. I really appreciated your help and I think I have enough material to start. DarienHacker, do you remember what was the recommended book? Thanks.