Real Estate Development Overview

A feasibility study involves assessing the viability of a real estate development project by evaluating its economic potential and market demand.

A prime area for rehabilitation is often characterized by convenient access to workplaces or employment opportunities, making it attractive for potential residents or businesses.

Developers typically rely heavily on loans from construction and development lenders to finance their projects.

Real estate development encompasses a wide range of projects, from individual homes to entire cities, involving the creation of new buildings and properties.

Rehabilitation involves taking a worn-out building and bringing it up to modern standards and a better condition

Subdivision is the division of a large piece of land into smaller lots, often for development purposes. Gentrification is the process of renovating an area, which can lead to increased property values and sometimes displacement of existing residents.

Tax credits can offer significant financial incentives to encourage real estate rehabilitation projects, making them more appealing to developers.

Developers aim to maximize their potential for profit, but real estate development involves risks and uncertainties. It's not a riskless investment.

Rehabilitating a property often results in higher rental rates due to the improved conditions and amenities.

Renovating a property often leads to its increased value, as a well-maintained property is more appealing and desirable to potential buyers or tenants.

A construction project where the builder starts construction without knowing the final users. This means they are building without a specific buyer in mind, and instead, they are hoping to attract buyers after the project is completed.

A construction project using plans and specifications agreed upon by the future users. Here, the builder is constructing based on the specific requirements of the intended buyer or user.

A contractor who oversees various general contractors involved in different phases of a construction project. They coordinate the work of multiple companies to ensure the project is completed efficiently.

A process where multiple contractors submit bids to complete a project. The lowest qualified bidder is chosen for the job.

Individuals or companies who develop land by adding improvements like buildings, infrastructure, etc., creating value and preparing it for development.

Developers who are able to identify and fulfill a current need in the market, granting them a temporary advantage. This allows them to potentially reap significant financial benefits before competitors enter the market.

A financial plan that includes various types of loans to support a development project, such as loans for the construction phase, temporary funding, and long-term financing once the project is complete.

A loan provided during the construction phase of a project.

A type of loan designed to bridge a temporary gap in funding during a project. It provides temporary support while permanent financing is being secured.

Long-term financing secured after the construction project is complete to help repay the initial loans and provide ongoing financial support.

The process of analyzing a piece of land to identify its most profitable and best use, considering factors like location, zoning, and market demand.