REAL 1820 Lecture Notes - Lecture 6: Loan, Espn Bottomline, Earnings Before Interest And Taxes
Document Summary
Developers must have vision and see opportunities that others do not see. Or are too slow to capitalize upon ie: the rst enclosed shopping mall, rst senior housing program etc: market is evolving & changing, new opportunities are emerging. Long & complicated process ie: more room for errors demand overestimated competition underestimated. Inception of an idea: have a development idea, need practical experience, feasibility study. Evaluate viability of the idea: contract negotiation. Site purchase with landlord loans from banks: construction contract with builders. Purchase of property insurance: construction, make sure construction work is on schedule & within budget, completion & formal opening, utilities (water, hydro etc. ) are connected, buyers/tenants move in. The development team needs to be formed because it"s a multifaceted business ie: design, finance, build, lease/sell etc. Developer: leader of the team: decision maker, hires other team members to help on project. Builders: make a contract with developer to build the project.