The Real Estate Development Feasibility Chart

The steps below represent the risks for the development of new or rehabilitated real estate.
The order outlines the steps required to properly conduct the feasibility process.

Most Critical Risks for Your Development:

+ + +

Economic Cycles
Personal Stabilized completion may
take 2-5 years
& Family Market Research
●1st
Cycle: Stabilize
You can make (or lose) a lot ● 2nd Cycle: Refinance Tax Free $ Each use and demographic
of money. ● “Good Deals in Bad Markets” offers opportunities.
● “Paths of Growth”
● Understand Bookend
● Goalsand Skills Assessment
● RiskTolerance Generations of Millennial and
● Personal Financial Planning
Empty Nesters
● MXD, TOD, Air Rights

Legal ● Shared Economy

● Walkscore

Relationships Environment
Handshakes & trust are as Adaptive Reuse in Urban
important as contracts. Cores

● LLC Entity & Pass-thru ● Contamination

● How Many Partners ● Significant Natural Resources
● Flood Map Changes
● Climate Change Impact

Development Success
Property Architecture
Management & Engineering
My tenants are my partners. ● 4 Keys to Up Valuing Does my property reflect
● Before Tax and After Tax Cash Returns
How can I help them grow? timeless, flexible design?

of at least 8%-10% per year

● “WOW” Factor
● Increase Revenue
● SitePlanning
● Cut Operating Expenses

● Yield on Cost of 2% above Market Cap

● Partner with your Architect
● Improve NOI
● Density, Setback, FAR
● Job for You
● Sustainable Design

Rates
● Appreciation Doubles this Overall Yield
● Psychic Income

Sales & Leasing Construction

How can I push the Four Key Words: How
market? soon? How much?
● Advantages of Rental vs. Sale ● Contractor-On Time & On Budget
● ProForma ● TenantImprovements (TI)
● Pre-lease/Pre-sale ● Partnerwith General (GC)
● Job for You ● Rehabilitation vs New
Construction

Social &
Taxes Community Goals
Should I do real estate for What does the community
tax reasons? want to become?
● Before and After Tax Analysis
Depreciation
● Political ● Healthy,
● Place
Walkable, Green
Making
● IRS
Changes
● LLC Pass-thrus Equity & Debt Approvals ● Attract Talent
● Density
● Tax Credits ● Diversity
● 1031 What do stakeholders and
Ideal Loan-to-Value politicians desire?

● Before Tax Cash Flow ● Economic Development & Job

● AfterTax Cash Flow Creation
● Internal Rate of Return ● Upvaluing Site Plan
● Cap Rate Trend ● Historic Preservation
● Return on Cost ● Rezoning

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