Module 1

The Fundamentals of Real Estate Development

  1. Real Estate Development
  2. The Key – Marketing and Marketing Research
  3. Decision Making – Choose a Target and Set a Goal
    • Buying a Parcel of Land to Hold for Future Development
    • Flipping the land
    • Creating the Development Master Plan and then Selling
  4. Create Your Investment Strategy
  5. Successful Developments
    • Location
    • Planning
    • Market timing: The Window of Opportunity
    • Financial Staying Power
    • Control of Construction Costs and Schedule
    • Properly Marketed and Targeted
    • A Well-Conceived Financing Package
    • Management Control
  6. A Healthy Economy
  7. The Art of Compromising
  8. Quality and Service
  9. Good Old-Fashion Luck
  10. Market Constraints
    • Customer Mentality
    • Mortgage Rates
    • Governmental Regulatory Policies
    • Market versus Investor Demand
  11. Market Timing: Four Cycles that Affect Development
  12. Down Cycle
    • Absorption Cycle
    • New Construction Cycle
    • Market Saturation Cycle
  13. Weighing the Risk
    • Financial Risk
    • Opportunity Risk
    • Inflationary Risk
    • Physical Destruction Risk
    • Liquidity Risk
    • Health, Family and Ego Risk
  14. Weighing the Risks
    • Doing Your Homework
    • Land Purchase Contingencies
    • Diversifying Your Development Activities
    • Shift Rental Risk to the User
    • Limiting Financial Liability of Ownership
    • Ownership Investment Vehicle and Legal Liability
  15. Reaping the Rewards
    • Generating Up-Front Fees
      • Development Fees
      • General Contractor Fee
      • Construction Management Fee
      • Marketing or Leasing Fee
      • Property Management Fee
      • Resale Fee
  16. Cash Flows
  17. Using Available Tax Shelter
  18. Creating Net Worth – The Residual
  19. Accomplishment in One’s Work – The Ultimate Credential
  20. Public and Private Interface in Development
    • Space Consumer (User) Group)
    • Space Producer Group
    • Public Infrastructure Group
  21. Types of Developers
    • Land Developers
    • Speculative Developers – Building to Own
    • Merchant Builders
    • Fee Developers
    • Renovators and Converters