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Frequently Asked Questions
What is development sourcing and why is it important?
Development sourcing is a crucial step for property developers to identify potential sites and properties for new construction or redevelopment projects. It involves extensive research and analysis to determine the suitability of a location based on factors such as zoning laws, market demand, and infrastructure availability. Development sourcing is important because it can help developers find profitable opportunities, reduce risks, and save time and money.
How do you source developments for clients?
We source developments for clients by following a three-step process: research, analysis, and proposal. We use a variety of sources to gather data on the location, zoning laws, market demand, and infrastructure availability. We then evaluate the feasibility and potential profitability of each option, assessing the risks and opportunities associated with each site, and evaluating the competitive landscape. Finally, we prepare a proposal outlining the recommended sites and properties, including project scope, timelines, budgets, and expected returns.
How do you evaluate the feasibility and profitability of potential sites and properties?
We evaluate the feasibility and profitability of potential sites and properties by conducting a cost-benefit analysis to determine the financial viability of each option. We compare the estimated costs of acquiring, developing, and selling the site or property with the projected revenues from selling or leasing the finished product. We also consider factors such as market demand, supply competition, location attractiveness, development potential, zoning restrictions, planning approval likelihood, environmental impact, community sentiment, and risk exposure. We use various tools and methods to conduct this analysis, such as feasibility studies, sensitivity analysis, scenario analysis, discounted cash flow analysis, net present value analysis, internal rate of return analysis, breakeven analysis etc.
How do you prepare a proposal for recommended sites and properties?
We prepare a proposal for recommended sites and properties by outlining the following information for each option:
- Project scope: This includes the description of the site or property, its size, location, features etc. It also includes the proposed development plan for the site or property such as design concept sketches or drawings; number of units; type of units; size of units; amenities; parking; landscaping etc.
- Timelines: This includes the estimated duration of each stage of the development process such as acquisition; due diligence; planning approval; design development; construction; marketing; sales etc.
- Budgets: This includes the estimated costs of each stage of the development process such as acquisition; due diligence; planning approval; design development; construction; marketing; sales etc. It also includes the estimated revenues from selling or leasing the finished product.
- Expected returns: This includes the estimated profit margin; return on investment; return on equity; internal rate of return etc. for each option.
- Benefits and risks: This includes the advantages and disadvantages of each option such as market demand; supply competition; location attractiveness; development potential; zoning restrictions; planning approval likelihood; environmental impact; community sentiment; risk exposure etc.
- Recommendation: This includes a clear statement of which option we think is best suited for your needs and why. It also includes any contingencies or conditions that may apply to our recommendation such as securing financing; obtaining planning approval; conducting further due diligence etc.
What are the additional services you can provide after sourcing developments for clients?
The additional services we can provide after sourcing developments for clients depend on their needs and preferences. Some of the services we can offer are:
- Site acquisition: We can help you negotiate and secure the purchase of the site or property that you have chosen from our proposal. We can also assist you with due diligence, legal matters, financing, and settlement.
- Project management: We can help you manage the entire development process from planning to completion. We can coordinate with other service providers such as builders, engineers, architects, consultants, and contractors. We can also monitor the progress, quality, budget, and risks of the project and report to you regularly.
- Financing support: We can help you find and secure the best financing options for your development project. We can advise you on the different types of loans, interest rates, terms, and conditions available in the market. We can also help you prepare and submit your loan application and documentation.
- Marketing and sales: We can help you market and sell your finished product to potential buyers or tenants. We can design and implement a marketing strategy that suits your target market and budget. We can also handle the enquiries, inspections, negotiations, contracts, and settlements of your sales or leases.