Property Developments

Objective: Manage the entitled land and obtain necessary building permits (if not already obtained) and begin construction. Ready the development for pre-sales and project specific marketing campaign.

Timeline: Six to 12 months after construction has begun. The project is developed while continuing marketing campaigns aimed at individual unit sales. Once the project is completed, an additional period continues until all individual unit sales are complete.

Related expenses: The developer will incur significant costs to obtain the required building permits and mitigate other factors prior to starting construction. Costs will include architectural, structural and civil engineering fees, attorney fees, marketing (pre-release and pre-sales), significant developer time, human resources, and overhead expenses, all before construction commences. Once construction starts, the developer's goal is to have many of the major risk factors mitigated leaving just the cost of construction.

Potential risks: Market changes (the market may go cold during an extended development phase) and economic downturns. Public policies, county and local politics, and attainability of desired approvals may affect the viability, holding cost and profitability of the project. Other risks include construction mismanagement and costs overruns, labor issues, product demand, and other construction related risks.

Rewards: The overall financial return is dependent upon the market and product type. The cost of development is significantly less than the resale value of the finished product which should generate profit.

Investment Opportunity: Secured Investments providing returns of up to twelve (12%) CAP