REAL 1820 Lecture Notes - Lecture 8: Formal Methods, Earnings Before Interest And Taxes, Project E

• School: University of Guelph
• Department: Real Estate and Housing
• Course: REAL 1820
• Professor: Jian Zhou

Document Summary

Introduction to real estate development. The essence of development is adding to the supply side of real estate market. These concepts didn"t exist 3 or 4 decades ago. ) Because market is evolving and changing, new opportunities are emerging. Development requires both analytical and people skills. Development is the riskiest sector within the real estate industry: two reasons include. 1 it involves a large amount of capitals. 2 the development process is long and complicated, thus more rooms for errors. e. g. demand overestimated, competition underestimated, etc. It was then moved slightly, and built. : development process. 1st: inception of an idea. Have a development idea; need practical experience. Evaluate the viability of your development idea (is it a profitable idea?) Site purchase with landlord - negotiate price. Loans from banks - (this can be the hardest part) Make sure construction work on schedule and within budget. 5th: completion and formal opening.