REAL 1820 Study Guide - Midterm Guide: Income Approach, Credit History, Property Insurance

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

Document Summary

Development is the riskiest sector within the real estate industry: two reasons include. It involves a large amount of capitals: the development process is long and complicated, thus more rooms for errors. 1st: inception of an idea: have a development idea; need practical experience. 2nd: feasibility study: e(cid:448)aluate the (cid:448)ia(cid:271)ility of you(cid:396) de(cid:448)elop(cid:373)e(cid:374)t idea (cid:894)is it a p(cid:396)ofita(cid:271)le idea? (cid:895) 3rd: contract negotiation: site purchase, loans (hardest part), construction contract, property insurance. 4th: construction: make sure construction work on schedule and within budget. 5th: completion and formal opening: utilities (hydro, water, etc. ) are connected, buyers or tenants move in (finalizing step) Developer - the leader of the team, decision maker, hires other team players. Builders: makes a contract with the developer to build the project. Attorneys and accountants: legal services on taxes, land uses, leases, etc. Leasing agents and/or sales brokers: help to lease/sell to tenants/buyers.