Introduction To Property Development & Investment

The introduction to Property Development and Investment course will teach you how to invest in property development and walk you through how to make decisions concerning:

• Site acquisitions
• Professional team setup
• Project and budget management
• Financial analysis
• Funding 
• Exit strategies

You will be equipped with the knowledge to make investment decisions, identify and mitigate risks and deal with the intricacies of property acquisition, management and disposal.
 

Course Content:

• Introduction to Property Development and Investment
• Property development and investment as a business
• Market overview & where to find opportunities and the pipeline
• Development and investment strategies
• Financial return metrics
• Real estate economics & cycles - entry & exit planning
• Exit strategies
• Identifying and evaluating investment opportunities
• Market analysis: The real estate cycle and investment opportunities
• Real estate investors: Height net worth individuals, pension and other institutional funds
• Valuation for commercial and residential properties
• Assessing Gross Development Values (GDV), key development costs, professional fees, interests costs and contingencies
• Financial analysis: Discounted Cash Flow (DCF), profit on cost calculation, IRP, NPV, equity multiple
• Maximum bid price for site
• Obtaining planning permission and enhancing existing planning permission
• Planning permission explained
• Types of permits (no planning, outline, permitted development, full permission, enhancement potential)
• Pitfalls to watch for and managing expectations
• Structuring the offer for the site
• Reducing capital requirements: Purchase options explained
• Delayed completion options
• Full cash offers
• Landowner joint-ventures
• Aligning capital in a bid to offer for the site
• Overage agreements
• Assessing the legal title and searches
• Construction and Project Management
• Contracting, monitoring works and phase completions
• Cost control, overruns and how to deal with budgets
• Setting up the professional and advisory teams: from quantity surveyors, to architects, accountants, construction companies, financial modelling & control, joint-ventures partners, solicitors and lawyers, and tax advisors
• Sourcing, engaging and motivating the team
• Case Study:
• Value-add development in West London
• Day 2:
• Funding and Financing the Real Estate Project
• Sources and types of funding available: rates, sample terms and investment structure
• Principle of corporate finance: picking the right capital structure to fund the property development project
• Forward funding
• Typical senior debt terms and structures
• Typical mezzanine debt terms and structures
• Sourcing additional equity
• Inter-creditor and shareholders agreement
• Basics of development loan structures
• Lending criteria and typical capital structures
• Lending fees
• Introduction to UK Taxation of Real Estate
• Principles of taxation for real estate
• Property taxes and financial returns
• Taxes on acquisition, development, accupancy and disposal
• Pff-shore versus on-shore companies' taxation
• Exit options, sales, marketing strategy and tactics in practice
• Marketing and client segmentation
• International investors and marketing overseas
• Marketing strategy and tactics for your project
• Estate agents: structures, hiring an firing
• Structuring offers for buyers
• Controling sales and marketing budget
• Sustainability in Real Estate
• The value of green buildings
• Sustainability certifications
• Environmental, social and governance for development and investing
• Well-being in real estate
• Property Management
• Property management requirements and strategies
• Asset management plans, processes and control techniques