Introduction to the Real Estate Development Process (February 2019 On Demand)
Introduction to the Real Estate Development Process
Real estate development is a complex and iterative process that relies on the skills, efforts, and knowledge, of multiple professional disciplines to be successful. This new ULI program presents the basic elements of the real estate development process in a convenient online format. Delivered over six sessions, this program is designed to introduce to public and private sector professionals, the fundamental steps and analyses that developers and other professionals engage in during the real estate development process. The objective of the series is to provide a broad understanding of the development process from building a project budget to valuing raw land before purchase, to finance concepts used by lenders.
Each session is recorded and will be available for registrants to review for 60 days
-Bar napkin from finance
The Market Study
Project Valuation Methods
-Time value of money
Residual land value
-Building on project valuation (to determine land value)
-Utility of Land Use
-Impacts of rising construction costs on land value
Real estate deal structures
Introduction to Finance Tools
-Introduction to net present value (NPV)
-Introduction to discounted cashflow (DCF)
Program highlights include:
•Building project budgets
•Market studies and their purpose
•Project valuation methods
•Residual land value
•Project site selection
•Aspects of deal structuring
•Entitlements and permitting issues
•Introductory financial analysis
•Bidding and reviewing project construction bids
David H. Farmer
David H. Farmer is a developer, licensed real estate Broker, certified planner, civil engineer, state certified general contractor and Department of Environmental Protection qualified stormwater management inspector.
Dave Farmer began his career in the development industry in 1989 with an engineering firm designing commercial and residential projects for private clients. A professional engineer, Farmer left the engineering field in 2000 to work fulltime for Keystone Communities overseeing the entitlement, design and construction of residential communities, resort facilities, and commercial projects. In 2002, after earning his Certified General Contractors license, he also became responsible for the permitting and construction of custom homes.
Following a large sale of entitled and developed residential lots in 2003, the company’s focus shifted from development to entitlement and infrastructure development. At this time Farmer took on the additional responsibility of site selection and acquisition for the company. In 2005, he was made a principal of the company and participated in both the rewards and costs of acquisition, entitlement, and development.
Farmer’s development experience includes both very successful projects and less successful projects. In the tradition of ULI, he feels it’s important to focus more on mistakes made and lessons learned when teaching the real estate development process. One learns quickly what not to do when you are spending your own money on development projects.
In 2008, Farmer and his development partner dissolved the original company and each went their own way. Today he works in Florida with a new partner on identifying development sites and helping investors develop property. Farmer has brokered more than $70 million in real estate transactions and entitled thousands of homes and millions of square feet of commercial property. His favorite quote is “Begin with the end in mind.”
ULI Members: $395
March 22, 2019
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Public Member: $350.00
Public Nonmember: $465.00
Full Price: $525.00