REAL 1820 Lecture Notes - Lecture 8: Formal Methods, Property Insurance, Earnings Before Interest And Taxes
17 Oct 2016
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Document Summary
The essence of development is adding to the supply side of real estate market. Developers must have vision and see opportunities that others do not see or are too slow to capitalize upon. Ex. first enclosed shopping mall, first senior housing program, etc. These concepts didn"t"t exist 3 or 4 decades ago. This is because market is evolving and changing, new opportunities are emerging. To be a successful developer, you need to be the first to have a new development idea, or be (cid:498)fast seconds(cid:499) (someone who quickly follows the first) Development is the riskiest sector within the real estate industry: it involves a large amount of capitals, the development process is long and complicated, thus more rooms for errors. An example: guelph"s (anlon creek business park (cid:523)(cbp(cid:524). 1st: inception of idea: have a development idea; must have practical experience. 2nd: feasibility study: evaluate the viability of your development idea. Site purchase with landlord, loans from banks, construction.
