Finance for real estate development. created by Charles Long

Includes index.

Chapter 1 - The Development Process; Real Estate Overview; The Development Process and Risk; Stages of Development; Predevelopment; Development; Close-out and Operation; Four Dimensions of Successful Development; Values; Information; Financial Viability; Relationships; Skills of a Successful Developer; Development Sectors; Customer Issues; Return, Absorption, and Risk; Case Study; 2 - The Basics of Real Estate Finance; Basic Debt and Equity Structure; Project Valuation; Capitalization Rates. Measuring Project ReturnInternal Rates of Return; Leverage; Funding a Project; Funding Predevelopment Costs; Debt Funding; Equity Funding; The Typical Deal; Financial Structuring for a Hypothetical Project; Estimating Costs; Evaluating Return; 3 - Land Valuation for Acquisition; Determining a Valid Hurdle Rate for Evaluating . Project Viability; Calculating the Supported Investment and Residual . Land Value; Costs; Residual Land Value; Disciplined Acquisition: Site Selection, Negotiation, and Due Diligence; Information Inputs; Negotiating with Site Owners; Due Diligence. Example: Simple Pro Forma for a Mixed-Use Project, 4 - Task Management and Budgeting; Task Management to Achieve Financial Viability; Site; Market; Community; Product/Project Design; Cost and Construction Management; Finance; Personnel Selection; Other Services; Task Funding; 5 - Capital Markets for Real Estate; Capital Market Conditions; Capital Sources; Banks, Savings and Loans, and Mutual Savings Banks; Commercial Mortgage-Backed Securities; Private Equity Capital; Fiduciary Principles; Investment Strategies; Property Characteristics; Sector Risk; Regional Strength. Tenant StrengthValue-Add Opportunities; Capital Markets and the Risk-Reward Evaluation; 6 - Obtaining Financing for Development; Market Conditions; Connecting with Capital Sources; Accessing Predevelopment and Development Equity Capital; Accessing Construction and Permanent Financing; Finding a Buyer for the Property; Presenting to Financing Sources; Experience, Credibility, and Financial Capacity of the Development Entity; The Development Project and the Business Plan; Entitlement Process and Role of Public/Private Partnerships; Conclusion, 7 - The Development Entity, Joint Ventures, and the Financing StructureReal Estate Entities; Partnerships; Limited Liability Companies (LLC); S Corporations; Real Estate Investment Trusts; Corporations; Elements of a Joint Venture; Business Plan; Participants; Governance; Capitalization; Revenue Distribution Among the Partners; General Provisions; Financing Structure; Profit Distribution to the Development Entity; Example: Profit Distribution within a Development Entity; 8 - Managing the Entitlement Process for Financial Viability; Mapping the Process; Before Making an Offer, 9 - Public/ private partnerships, 10 - How developers get capital.

Explaining how finances drive each decision in the real estate development process, this helpful industry guide recognizes the complexities and significant risks of each project and illustrates how to reconcile conflicting elements to ultimately achieve success. A 36-year real estate development veteran, author Charles Long shares the practical information and personal insights that he has gained over the course of his career, and weaves relevant real world examples into the text, helping to clarify the principles necessary to effectively manage a project in today’s financial landscape. Ideal both for those starting out in real estate development and experienced professionals who want to learn the theory behind the practice, this book offers a different perspective on making the monetary decisions that are involved in property development projects.