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
August 6, 8, 13, 15, 20, and 22, 2018
Live online
1:00 p.m. – 3:00 p.m. Eastern
Session One
Introduction
-Outline of items/topics covered
-Risk
-Demand
-Finance
-Types of developers and projects
Budgeting
-Feasibility
-Bar napkin from finance
The Market
Study
-Purpose of document
-Ways to quantify demand
-Project
location and proximity to similar projects
-Absorption
-Key risks
Session Two
Project
Valuation Methods
-Understanding NOI
-Appraisal
-Time value of money
-Defining and using cap rates
Residual
land value
-Building on project valuation (to determine land
value)
-Utility of Land Use
-Impacts of rising construction costs on land value
Site Selection
-Best practices
-Why this site and not that one
-Site limitations (zoning, geometry,
environmental etc)
Session Three
Due Diligence
-Confirm assumptions in site selection
-Sample DD budget
-Project economics
-Entitlement risks/PERT
Real estate
deal structures
-How projects get financed
-Lender requirements of developers
-Lenders triangle
-Partnership structures (and why)
-Profit split example with investor
Session Four
Entitlements
-Timelines and budget/project risks
-Review local, regional, state and federal
permits
-Rezones/land use changes
-Reactionary zoning
Session Five
Introduction to Finance Tools
-Review terminology
-Review concepts of TVM (time value of money)
-Calculate Loan amount
-Calculate loan payoff amount
-Calculate project ROI and annual ROI (return on
investment)
-Introduction to net present value
(NPV)
-Introduction
to discounted cashflow (DCF)
Session Six
Construction
-How to bid a project
-How to review bids
-Working with your contractor
-Risks and how to mitigate them
- Course Wrap up
Program highlights include:
•Building project budgets
•Market studies and their purpose
•Project valuation methods
•Residual land value
•Project site selection
•Due diligence
•Aspects of deal structuring
•Entitlements and permitting issues
•Introductory financial analysis
•Bidding and reviewing project construction
bids
Instructor
David H. Farmer
Principal
Keystone Development Advisors
Naples, Florida
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.”
Registration
ULI Members: $395
Nonmembers: $525
Govt./nonprofit ULI member: $350
Govt./nonprofit nonmember: $465
Seminar | Product |
Introduction to the Real Estate Development Process: Session 1 | Live Event + Archive |
Introduction to the Real Estate Development Process: Session 2 | Live Event + Archive |
Introduction to the Real Estate Development Process: Session 3 | Live Event + Archive |
Introduction to the Real Estate Development Process: Session 4 | Live Event + Archive |
Introduction to the Real Estate Development Process: Session 5 | Live Event + Archive |
Introduction to the Real Estate Development Process: Session 6 | Live Event + Archive |