All Forum Posts by: Derek G.

Chris,

As it pertains question, “What is your end game / goal? Many of these questions are negotiated variables as part of any deal which is deal specific.” My goal was to get a big picture understanding of the questions posted and any specific samples will help of past experience. I’ve been in the Commercial General Contracting sector for 9+ years along with having a real estate brokers license and am trying to piece both together into Real Estate Development.

Derek 

Jonathan,

Thank you for taking the time to replay based on your experience. It was a big picture view which is what I was looking for as some of the topics themselves can be in depth. It was helpful. 

Derek

When purchasing real estate development property what documentation is typically needed to obtain investor capital or bank financing such as a ProForma, Argus Run, etc? Also, what is typically included in an investment opportunity package?  

1. What have you found as the best way to look for real estate development prospects in the industry as it pertains to property/land acquisitions?

What contracts are most used during the acquisition periods? Is it a custom template or commercial contracts standardized by the state real estate board?

What is a typical structure as it pertains to investor fees and is profit sharing typically negotiated in addition to the fee? This is both for Commercial and Residential. 

What is the typical target cap rate/IRR range for a hospitality, retail or apartment complex?

Is property typically assembled in a trust to keep people from knowing who is purchasing parcels during assemblage?

Is each development project covered under a separate LLC or Trust to protect the company? Which is most typical?

What documentation is typically needed for planning and zoning? For example you have renderings, feasibility studies and presentation. Is this presented to the city prior to acquiring a property during the due diligence period or is a land use attorney or city planner used?

When purchasing a real estate development property, what is the typical agreement as it pertains to an options period to conduct studies and determine if to proceed forward or not with the purchase?