It’s the textbook that’s also a playbook.
ACTIVELY USED IN THE INDUSTRY
WHAT REAL ESTATE BUSINESS LEADERS SAY ABOUT
The book’s straightforward exposition allows one to grasp the challenges facing real estate investors, and provides them with an excellent foundation upon which to build.
This book’s examples are realistic, revealing the authors’ grasp of both theoretical complexity and the necessity of pragmatic decision making. Clear, concise, and on target.
Provides the “must know” and tremendous insight into the “should know”… A must use for any real estate professional.
The book serves as an excellent primer on general real estate concepts and provides in-depth analysis of asset valuation, deal structuring and capital market considerations.
The 5th edition of the text, as expanded and reconfigured, serves as a more comprehensive source where information flows more logically than ever before. I say congratulations, this may well be the best textbook ever written concerning the subject of Real Estate Finance and Investment Analysis.
Who Should Read This Book?
BROKERS
Commercial real estate brokers seeking to move to the acquisitions or development side
Investment sales brokers wanting to better understand seller and buyer considerations
NEW CRE PROFESSIONALS
Recently-graduated students who are now commercial real estate professionals
Non-real estate professionals transitioning into the commercial real estate business
CONSTRUCTION EXECS AND COUNSEL
Construction executives and contractors desiring to become real estate developers
Real estate attorneys seeking to move into a business role at a real estate operating company
CURRENT AND FUTURE BUSINESS OWNERS
Real estate executives making the leap to their own entrepreneurial platforms
Business owners needing to make smart corporate real estate decisions
RESIMERCIAL AGENTS, INVESTORS AND FUNDS MANAGERS
Residential real estate investors, agents and brokers looking to learn about commercial real estate
Investment professionals considering REIT holdings
ANALYSTS, ASSOCIATES AND PRINCIPALS
Real estate private equity fund analysts and associates
Property owners weighing financing and exit alternatives …
…and anyone else looking to brush up on their knowledge.
BROKERS
Commercial real estate brokers seeking to move to the acquisitions or development side
Investment sales brokers wanting to better understand seller and buyer considerations
NEW CRE PROFESSIONALS
Recently-graduated students who are now commercial real estate professionals
Non-real estate professionals transitioning into the commercial real estate business
CONSTRUCTION EXECS AND COUNSEL
Construction executives and contractors desiring to become real estate developers
Real estate attorneys seeking to move into a business role at a real estate operating company
CURRENT AND FUTURE BUSINESS OWNERS
Real estate executives making the leap to their own entrepreneurial platforms
Business owners needing to make smart corporate real estate decisions
RESIMERCIAL AGENTS, INVESTORS AND FUNDS MANAGERS
Residential real estate investors, agents and brokers looking to learn about commercial real estate
Investment professionals considering REIT holdings
ANALYSTS, ASSOCIATES AND PRINCIPALS
Real estate private equity fund analysts and associates
Property owners weighing financing and exit alternatives …
… and anyone else looking to brush up on their knowledge.
Why You Should You Own this Book
It’s the most concise, clear treatment of commercial real estate investment available
It will equip you with insights to help you punch above your weight class
It provides a consolidated set of key analysis frameworks for:
Assessing the real estate cycle
Most pro formas only ever show the market going up. Adjust your mindset by seeing the big picture.
Discount and cap rate selection
Understand discount rates, cap rates and real estate better than you ever have.
Evaluating debt alternatives
Learn why covenants and prepayment penalty structures are potentially more important than loan amount and interest rate.
Development feasibility
Screen potential opportunities efficiently with simple but powerful calculation methods.
Lease negotiation
Rent and term are the headlines, but just two of dozens of key terms to consider.
Preferred return, promote and catch-up structuring
Focus on what matters most in equity JV partnership economics.
Corporate rent versus own analysis
The correct, definitive decision-making framework.
Owner exit strategies
Evaluate your options objectively with an eye to potential income tax liability.
Investing outside of the U.S.
Be aware of potential pitfalls of investing internationally.
And much more
Including ground-leased property valuation, becoming a REIT, and going public.
About the Authors
Peter Linneman, PhD
Founder and CEO, Linneman Associates
For over 40 years, Dr. Peter Linneman’s unique blend of scholarly rigor and practical business insight has won him accolades from around the world, including PREA’s prestigious Graaskamp Award for Real Estate Research, Wharton’s Zell-Lurie Real Estate Center’s Lifetime Achievement Award, Realty Stock Magazine’s Special Achievement Award, being named “One of the 25 Most Influential People in Real Estate” by Realtor Magazine and inclusion in The New York Observer’s “100 Most Powerful People in New York Real Estate”.
After receiving both his Masters and Doctorate in Economics under the tutelage of Nobel Prize winners Milton Friedman, Gary Becker, George Stigler, Ted Schultz and Jim Heckman, Peter had a distinguished academic career at both The University of Chicago and the Wharton School of Business at the University of Pennsylvania. For 35 years, he was a leading member of Wharton’s faculty, serving as the Albert Sussman Professor of Real Estate, Finance and Public Policy as well as the Founding Chairman of the Real Estate Department and Director of the prestigious Zell-Lurie Real Estate Center. During this time, he was co-editor of The Wharton Real Estate Review. In addition, he published over 100 scholarly articles, four editions of the acclaimed book Real Estate Finance and Investments: Risks and Opportunities, and the widely read Linneman Letter quarterly report.
Peter’s long and ongoing business career is highlighted by his roles as Founding Principal of Linneman Associates, a leading real estate advisory firm; CEO of American Land Fund; and CEO of KL Realty and AOZA Fund. For more than 35 years, he has advised leading corporations and served on over 20 public and private boards, including serving as Chairman of Rockefeller Center Properties, where he led the successful restructuring and sale of Rockefeller Center in the mid-1990s.
Although retired from Wharton’s faculty, Dr. Linneman continues his commitment to education through his SAM Elimu Foundation educational charity for orphans and children of extreme poverty in rural Kenya. He has been married for over 40 years and is an exercise enthusiast.
Bruce Kirsch, REFAI®
Founder and CEO, Real Estate Financial Modeling
As the founder of Real Estate Financial Modeling (REFM), Bruce Kirsch has trained thousands of students and professionals around the world in Excel-based projection analysis. In addition, REFM’s self-study products, Excel-based templates and its Valuate® property valuation and investment analysis software are used by more than 250,000 professionals. Mr. Kirsch’s firm has assisted with modeling for the raising of billions of dollars of equity and debt for individual property acquisitions and developments, as well as for major mixed-use projects and private equity funds. Mr. Kirsch has also maintained a blog on real estate financial modeling, Model for Success, authoring more than 500 posts.
Mr. Kirsch began his real estate career at CB Richard Ellis, where he marketed highrise New York City office buildings for re-development in the Midtown Manhattan Investment Properties Institutional Group. After CBRE, Mr. Kirsch was recruited to lead acquisitions at Metropolis Development Company, and later joined The Clarett Group, a programmatic development partner of Prudential.
While at The Clarett Group, Mr. Kirsch was responsible for making development site recommendations for office, condominium and multi-family properties in the greater Washington, D.C. metropolitan area. In addition, Mr. Kirsch had significant day-to-day project management responsibilities for the entitlement, financing and marketing of the company’s existing D.C.-area development portfolio.
Mr. Kirsch holds an MBA in Real Estate from The Wharton School of the University of Pennsylvania, where he was awarded the Benjamin Franklin Kahn/Washington Real Estate Investment Trust Award for academic excellence. Prior to Wharton, Mr. Kirsch performed quantitative equity research on the technology sector at The Capital Group Companies. Mr. Kirsch served as an Adjunct Faculty member in real estate finance at Georgetown University School of Continuing Studies. Mr. Kirsch graduated with a BA in Communication from Stanford University.
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