Development Jargon: Pro Forma
You will find that any real estate investment, either development or acquisition, will involve a “pro forma” financial analysis.
Finance
How To: Add Value to a Development as a Design Consultant
As a design consultant looking to add value to a development or differentiate your firm there are four main financial levers you can pull:
Increase revenue
Decrease expense
Increase efficiency
Compress schedule
In this post you will learn the basics of these four financial levers. If you are interested in going deeper on each lever, let me know in the comments!
Highest and Best Use
Highest and Best Use is a term that you will often hear in relation to whether or not a real estate investment should be made. Highest and Best Use is a tricky concept because the term is subjective and relative
Discounted Cash Flow
Have you ever heard the saying that “a bird in the hand is worth two in the bush?”
Said in a different way, something guaranteed is more valuable than the unknown, and something you have today is worth more than something you will get in the future. This principle also applies directly to the world of real estate development and investing.
What is the Capital Stack?
Have you ever been in an investment committee meeting and heard your VP of Acquisitions talking about things you didn’t understand? In the “Development Jargon” series I hope to demystify the language of development. If you have suggestions for future demystifications, let me know on twitter!
What are Cap Rates?
Have you ever been at a real estate conference or event and heard folks slinging around jargon you are not familiar with? In the “Development Jargon” series I hope to demystify the language of development.