How does a developer know whether a particular piece of land is affordable by the project? What specific areas of information should a developer investigate after site control is achieved?
The business terms (price and timing of payment) for acquiring land for a development project is the most important decision that a developer makes because it is the only decision in the development process that the developer has complete discretion over making; if the price or timing of payment cannot be supported by the project, then the developer does not acquire. After the developer controls a piece of real estate the developer needs to focus expenditures on gathering information in areas of project risk and to continually evaluate whether the chances of success warrant further expenditures. If not, the developer needs to abandon the project and treat expenditures up to that point as a loss.
Who Should Order:
This webinar provides fundamental information about how to evaluate the economic viability of a real estate project to developers as well as planners, designers, architects, lenders, builders, attorneys, accountants, marketers, engineers, public officials, and environmentalists.
*Please Note: Hard copies of the presentation are not available with this recording.
September 22, 2008
The learning objectives of this Webinar are:
* Understand how to evaluate economic viability of a real estate project using a hurdle rate that reflects the construction period and absorption characteristics of the project.
* Understand how the development plan for a piece of land and the costs of development determine residual land value and why acquiring at no higher than residual land value is critical for project success.
* Understand what areas of information need to be investigated after site control is achieved and how information in these areas will determine whether to proceed with or abandon the project.