**April 24, 26, and May 1, 3, 2017**
Held over four sessions, this new online live program will focus on developing a single-family residential builder pro forma. The program will model and value a 50-lot single-family-home community. The model will assume the developer/builder is working with finished lots. Unlike a typical commercial model, this model does not include construction of an amortization table; instead, a residential builder uses a rolling facility. This construct will be explained in detail in session three of the course.
Each session of the workshop will build on the previous one, with each participant having a completed pro forma model at the conclusion. To avoid the possibility of anyone falling behind, the completed stages will be distributed the evening before each session.
Session 1: April 24, 1:30–3:30 p.m. ET
The program will begin by reviewing the structure for a residential builder, including lot take-down (the program assumes use of finished lots), schedule, and valuation. Data sheets will be provided for use in later stages of development for this program to ease data entry and better facilitate model building.
- Overview of the residential builder pro forma
- Review of consistent naming conventions
- Completed house-cost summary sheet (one page)
- Understanding of what and how the model will be scaled and built upon over the next three sessions
Session 2: April 26, 1:30–3:30 p.m. ET
The second session will focus on development of the schedule for lot take-downs and house starts and completions. The percentage draw for bank lending and for completion will be modeled in a schedule sheet.
- Understanding of the schedule characteristics for a residential builder with lot take-down and purchase
- Understanding that home construction can be summarized as to percentage of draws and completions
- Understanding that the schedule is a principal determinant of value in a residential project
- A developed ability to draw multiple elevations and house types in the residential builder pro forma model
Session 3: May 1, 1:30–3:30 p.m. ET
This session will focus on developing the economic pages for the pro forma model. The revenue/expense page summary will be constructed. In addition, the income statement and cash flow (in/out) pages will be developed from which valuations will be completed. The data pages provided earlier will be incorporated into the model at this point. These pages include hard-cost house pricing, recordation table, a sales and marketing budget, and a production overhead budget.
- Understanding of the basic components of revenue and expense cash flows for a residential builder
- Understanding of the structure and incorporation of data pages and how these are incorporated into a residential pro forma model
- Understanding and completion of the mechanics of the total model, which includes the rollover structure for debt, i.e., a revolving facility
- Clear demonstration of how to scale the existing model to a 500-plus-unit planned unit development (PUD)
Session 4: May 3, 1:30–3:30 p.m. ET
The final session will focus on the complete cash flow for the project from “cradle to grave.” A final valuation summary will be completed, demonstrating sensitivities to lot take-down velocity. The model will be reviewed in total, with each segment addressed to demonstrate how capital is used.
Further, demonstration of how to scale this model to a 500-plus-unit PUD will be provided. Additional items of expansion and complexity (e.g.. waterfalls) will be discussed as well.
- A completed scalable and modular residential builder pro forma model that includes a lot take-down schedule, house-cost summary, and revolving credit facility
- Understanding of the complete pro forma structure for a residential builder
- Understanding of how to analyze and add scalability to an existing model
- Understanding of how to scale the existing model further to include investment waterfall distributions, stochastic processes, portfolio analysis, and visual displays of results (this will be discussed but models will not be provided)
Mr. Staiger is owner of P(Gain), LLC, an international real estate investment and advisory firm with offices in Washington DC and New Castle, Nevis. P(Gain), LLC develops, owns and manages investments in the DC metropolitan area and the Caribbean. P(Gain) is best known for providing University scholarships for Nevisian graduating seniors. Also, through the Roger P. Staiger Faculty Development Fund, Mr. Staiger personally provides grants for academic research studies. On a limited basis, P(Gain) will provide expertise to clients in areas of global portfolio management, real estate financial modelling and asset repositioning.
During his 20-year career Mr. Staiger has worked in a number of industries at senior levels. He was Managing Director for a Fortune 500 Energy Company’s retail commodity division, CFO for America’s Best Mid-Sized Builder 2006, and a Portfolio Manager for a large commingled pension fund in New York.
Mr. Staiger holds multiple degrees including BS Electrical Engineering (Bucknell University), MBA Investments (George Washington University), MA International Transactions (George Mason University) and a MS Finance (George Washington University). Currently, Mr. Staiger holds or has held faculty positions in the real estate departments at Georgetown (Professor of Year, 2011), Johns Hopkins University (Senior Lecturer), and University of Maryland in the United States. Mr. Staiger also holds a faculty position in the MS Finance programme and Finance Department at George Washington University.
Mr. Staiger provides numerous capital market and economic presentations to organizations internationally. He also appears regularly on television and is often quoted in national periodicals. Mr. Staiger is recognized globally as an expert in Financial Modelling having authored the leading text on the subject, Foundations of Real Estate Financial Modelling, Routledge, 2015. Global interest and sales have warranted a second edition which is expected mid-2018.
Public Sector Member: $350
Public Sector Nonmember: $465