Real estate development course – 5 days

Course day one – introduction to real estate development

  • Session 1 – the stages of the real estate development process
    • Introduction to the real estate development process
    • The raw materials: land and demographics
    • History of real estate development
    • The role of market research and forecasting
    • Differences between sectors
    • Flow diagrams of real estate development
Case study: overview of real estate development
  • Session 2 – real estate developers
    • Types of real estate developer – public and private
    • Size and financial credibility of developers by project
    • Developers and their partners
    • The role of the public sector
    • Success criteria for real estate developers
Case study: key real estate developers, their projects and international diversification
  • Session 3 – working with real estate consultants
    • The theory and practice of outsourcing, as applied to real estate development
    • Establishing the role of consultants in different organisations
    • Consultant selection
    • Consultant costs
    • Legal aspects of real estate consultancy
Case study: comparing consultancy reports in proposed real estate developments

Real estate course day two – choosing a development site

  • Session 4 – real estate development site analysis
    • Criteria for real estate site analysis
    • Methodology of site analysis
    • Site due diligence
    • The creation of demand – how long can it work for?
Case study: analysing a potential real estate development site
  • Session 5 – real estate development site selection
    • Bid-rent curves and ‘natural’ zoning
    • Linkage and transfer costs
    • Comparative review of development sites
Case study: evidence on real estate development site selection and profitability – the relevance of location to profitability
  • Session 6 – financial analysis in real estate development
    • Methods of financial analysis used in real estate development
    • Aims and objectives
    • Calculating net operating income
    • Debt service constraints and payments
    • Debt leverage and the role of lenders
    • Before tax cash flow
    • Amortisation and depreciation schedules
    • Taxable income and after-tax cash flow
    • Net cash from sale
    • Depreciation schedules in real estate development
    • Ratio analysis (cash on cash, capitalisation rates, return on assets)
    • Net Present Values and Internal Rate of Return analysis (including XIRR and MIRR)
    • Comparison of results – solving the valuation puzzle
Case study: financial analysis of an office real estate development
  • Session 7 – development project feasibility
    • Technical feasibility for a real estate development
    • Financial and commercial viability
    • Role of competitors
    • Integration with other projects and capital rationing
Case study: comparing real estate development projects for feasibility. Presenting a feasibility study to the board
  • Session 8 – the contract and negotiation process for a real estate development project
    • Participating parties
    • Legal aspects of real estate development
    • Contract negotiation
    • The role of lawyers
    • Signature and action on contracts
Case study: examples of legal action involving real estate developers and contractors

Day three of the course – estimating development costs and budgeting

  • Session 9 – setting budgets for real estate development
    • Working within the context of the strategic plan
    • Forecasting development sales and revenue
    • Calculating cost of sales and overheads
    • Rolling, incremental, flexible and zero-based budget methodologies
    • Budget co-ordination: creating the master budget
    • Limiting factors
Case study: teamwork budget setting for a real estate development based on cost analysis
  • Session 10 – monitoring real estate development budgets
    • Actual vs. budget
    • Calculating and interpreting variances
    • Diagnosing the cause of variances
    • Re-forecasting
    • Feedback and feed-forward controls
    • Barriers to successful budgeting
    • Top down vs. bottom up processes
    • Committing to, and owning, the numbers
    • Total team participation
    • Dos and don’ts in budgeting for real estate developments
    • Overcoming the negative aspects of the budgeting process
    • Examining human responses to budgets
Case study: monitoring the budget over time for a major real estate development project – competitive exercise

Day four of the real estate course – managing the development process

  • Session 11 – the development land bank
    • Land zoning and the decision to develop real estate
    • Land prices and the cost of holding land
    • Opportunity costs
    • Land ownership obligations
    • Enhancing land – services and base construction
    • Subdividing and selling off
Case study: how large should the development land bank be? A comparison of best practice and achieved returns
  • Session 12 – real estate design, architecture and building
    • Critical architectural issues
    • The role of environmental analysis
    • Health and safety analysis
    • Tenant modifications and costs
    • Infrastructure issues
Case study: developing a business park from start to finish
  • Session 13 – the regulatory process in real estate development
    • The role of central and local government
    • development permits
    • Working with government
    • Land development and infrastructure
    • Title and title insurance
Case study: comparative analysis of the government’s role in real estate development
  • Session 14 – managing construction in real estate development
    • Key phases of construction
    • Costs and risks of construction
    • Timelines and project management
    • Disaster management and recovery
Case study: getting a development project back on track after a construction setback
  • Session 15 – completion
    • Timelines for development
    • Integrating commercial and construction activity
    • Signing off on project stages
    • Real estate portfolio management
Case study: examples of real estate project development software

Day five of the course – marketing real estate

  • Session 16 – marketing a real estate development project
    • Real estate marketing – theory and practice
    • Key marketing objectives
    • The role of advertising
    • Marketing costs, and cost-effective marketing
Case study: group exercise on developing a marketing program for a real estate development
  • Session 17 – marketing for different types of real estate development
    • Residential real estate marketing
    • Office marketing
    • Industrial
    • Retail
    • Marketing hotel and leisure real estate developments
Case study: examples of real estate marketing for different types of development
  • Session 18 – development simulations
    • The role of modelling net operating income and its components
    • Estimating operating expenses
    • Comparing sales methods (mortgage vs. instalment sales)
    • Risk modelling, certainty-equivalents and helpful software
    • Achieved pricing and the time value of money
    • Implications of funding strategies
    • Interlocking real estate development projects
    • Sale exchanges
    • Portfolio management
    • Real estate development lifecycles and value
Case study: creating unique value. Options in real estate development – a comparative review. Concluding exercise: managing a real estate development from start to finish, with a series of obstacles and management challenges to overcome

Contact us about an in-house real estate development course

Financial Training Associates’ real estate courses are all offered in-house. If your company has a group of 3-4 employees who are interested in a real estate course, in-house training will prove cost-effective. If you are interested in an in-house real estate course for a small group of your firm’s staff, please let us know by using Financial Training Associates’ company contact details at the top right.

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Real estate courses from Financial Training Associates

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