Introduction
If you’re looking to invest in real estate, it helps to know what factors will determine whether or not a project is feasible. For example, if a property development has little or no demand for the product it offers or doesn’t have enough parking spaces for its customers, then it might not be worth pursuing. Say’s Mark Mariani ,so how can you evaluate the feasibility of your project? Here are six questions to help guide your decision:
What is the project?
The first step in evaluating the feasibility of a property development project is to determine exactly what it is. What kind of project are you trying to develop? What purpose does it serve? Where will this new building be located, and how big will it be?
For example: if your goal is to build an office building in downtown Seattle, then your next step would be determining whether or not there is enough demand for offices in that area right now (and if so–how much).
Who are the stakeholders?
- Developers: The developers are the people who own the land, or who will build on it. They may be private individuals, companies or government agencies.
- Investors: Investors are those who buy into a project in order to make money out of it; they could be banks, individuals or investment companies.
- Tenants: Tenants are those who use the property after it has been developed; they could be businesses or individuals renting an apartment from you as part of your development plan.
What are the goals of the project?
The first thing you need to do is determine what the goals of your property development project are. What is the purpose of this new development? What do you want it to accomplish, and why does it matter for your organization or community?
This step will help shape how you approach each subsequent step of evaluating feasibility (and can also help guide decisions on where and how much money should be spent). For example, if a developer plans on building homes for low-income families with children who live in an area with few safe places for them to play outside–like many urban areas today–then they might consider making sure there’s plenty of open space available in their designs so kids have somewhere safe where they can run around outside without getting hit by cars or other objects like tree branches falling down due outsize winds caused by climate change impacts such as hurricanes hitting nearby cities like New Orleans (which happened last year).
If you want to develop property, you can use these questions to make a decision about your plans.
If you want to develop property, these questions can help you make a decision about your plans.
- How much money do I have available?
- What are my financial goals?
- How long do I expect it will take me to pay off my mortgage or loans on this property?
Conclusion
If you’re considering developing property, these questions will help you make an informed decision. They can also be used as a checklist when evaluating any new project or investment.
