Today is the kickoff of a series of articles for 2021 addressing the concerns families or property owners should consider when contributing their land or a large cash investment in a real estate development.
We will address what questions to ask, how to vet the developer, and how to match their appetite for risk to different possible deal types and what your risk tolerance may be. Today’s chapter will focus on how these development opportunities arise and things you should consider in advance.
If investing in a joint venture development appeals to you, one of the key components in your decision making is knowing the developer of the opportunity. Entering into a joint venture is like getting married, and you don't typically decide to walk down the aisle after the first date.
The path from start to finish for a commercial development can be like a roller coaster. While it appears to be linear, in reality there are many ups and downs, and several points when your car can feel like it’s going to jump off the rails!
It’s fall and that means…. budgeting for 2021! Wait, don’t go. Budgeting serves several purposes. First, it creates a way to hold management accountable for financial goals and to track progress. Second, it identifies capital needs and sources. Third, it shines a light on financial statements to determine if amounts included are reasonable. Are any amounts significantly higher or lower than expected and if so, why? […]
While the economy is opening back up, here are some items families with real estate holdings should be considering as we move forward: Cash is King. You’ve likely heard this a lot lately, but it’s true. Now is the time to preserve cash, monitor expenses, and only spend money on matters that can’t be deferred. Also, don’t wing it; prepare a rolling 12-month cash forecast and update […]
It may be a slow recovery, but we are certainly in the growth mode. With that comes an increase in leasing. Coming off a difficult economy means the review of your prospective tenant’s credit is even more important. Here are some key items to consider: Can they pay the rent? Look at the whole company, not just their financial statement How long have they been in […]
I’ve either prepared or reviewed numerous financing or investment packages over the years. It kills me when one is not prepared in a manner that flows, but makes the reader work to figure out what is being requested. I recently read a proposal from a very experienced developer seeking equity for a new project. It was hard to follow what was being asked of the reader. The […]