Real Estate folks?

[jbaldyga]

Any real estate folks out there ever perform acquisitions underwriting under a real options framework? I'm just looking into this, but it seems like optionality of ground up development or value add projects would be a good fit for this type of valuation framework.

Anyone know any good resources out there on the subject? I've seen some general texts on real options but nothing specifically geared towards real estate.

Thanks!

 

[stranger]

We don't use real options here, but I imagine they could be pretty useful with rehabs. I'd be interested in learning more.

 

[jbaldyga]

yea we're a small shop and I'd probably get the "wtf are you talking about" look if i brought it up. I'm thinking of running it in parallel w/ a few acquisitions to test it out. Should probably learn the method first though.

I'll post any good resources I find.