The 8 Phases of Development
The Eight Phases of Development
There is a critical path in real estate development that gets every deal from its natural start to its natural conclusion. To successfully execute on a real estate business plan, there is a sequence of events that occur in a strict chronology. If the order in which these events does not occur according to the critical path, the cost of developing the project will go up and the time it will take to complete will increase.
In this course you’re going to learn what those events are and why you only need focus on one of them:
1. Finding a Property to Buy
2. Formulating the Business Plan
3. Conducting a Feasibility Study
4. Enter Contract Negotiations
5. Conduct Thorough Due Diligence
After contract negotiations and once the seller agrees to all the terms and conditions, it's time for the heavy lifting. During the due diligence phase, the sponsor drills down on every single assumption in the business plan to ensure they have covered all the bases. By reviewing everything with a fine-toothed comb, they won’t be tripped up by unseen landmines when they execute on the business plan that could add to time or cost of the development. The reason the financial keys you’re going to learn about in this book are so critical to understand, is that the due diligence process is driven by them with these two key components:
- The sponsor must build a financial analysis of the project in a spreadsheet, and
- will justify every cell of their spreadsheet.
Whatever numbers the sponsor plugs into the financial analysis, each one must be backed up by rigorous research and analysis.
6. Make a Formal Commitment to Buy
7. Commence Development
8. Sell the Project or Hold and Manage it
Plus you’re going to learn who are the key players in any deal and what their respective rights and responsibilities – including yours as an investor.
Dr. Adam Gower is the world's foremost expert on raising real estate capital online.
He has combined his decades long experience in real estate investment and finance with best-of-class digital marketing techniques to create the Investor Acquisition System - a process utilized by sponsors and crowdfunding platforms to raise hundreds of millions of dollars.
He has held senior management positions at some of the largest real estate companies and institutions in the world and is recognized as an industry thought leader on the impact of crowd funding on the industry. During the 1990’s he was President and CEO of a division of Universal Studios developing their real estate portfolio throughout the Asia Pacific Region. After the financial crisis of 2008 had taken hold, Dr. Gower advised major regional banks and the world's largest private equity fund on their asset disposition strategies, assisting them to divest of large portfolios of real estate collateralized loans, and personally transacting in excess of $1.5 billion in real estate of all types.
Dr. Gower builds digital marketing platforms for developers so they can raise capital online and has taught the only fully accredited course in the country that focuses on real estate syndication investment via crowdfunding. In total he has taught real estate syndication courses to over 5,000 investors and is a prolific author.
His most popular books include SYNDICATE, a guide to raising capital online, The SECRET World of Real Estate and Crowdfunding, that reveals hidden benefits of investing in real estate, REALITY, covers how to access discounted real estate investments while protecting your capital, and in Capital Calls and RESCUE Capital you'll learn what to do during a downturn when things go wrong.
Dr. Gower hosts The Real Estate Reality Show on YouTube and podcast channels and curates the (free) GowerCrowd newsletter, the real estate syndication industry's leading resource for news, training, and online education for both sponsors and investors alike.
Visit GowerCrowd.com to learn more.
StartPrinciples of CFREI 5.1 Eight Phases - Introduction (6:25)
StartPrinciples of CFREI 5.2 Eight Phases - Only One Thing For You To Do (10:11)
StartPrinciples of CFREI 5.3 Eight Phases - The Bank (5:04)
StartPrinciples of CFREI 5.4 Eight Phases - The Investor (5:26)
StartPrinciples of CFREI 5.5 Eight Phases - The Sponsor (6:23)
StartPrinciples of CFREI 5.6 Eight Phases - Conclusion (3:34)