Planning for Profit in the Down Cycle
- Room: ACC North, 200 Level, Room 253AB
Thursday, May 25, 2023: 11:00 AM - 11:45 AM
Speaker(s)
Description
We will discuss adopting an iterative process where the Land Owner/and/or Developer can evaluate existing and evolving data leading to an improved land development program. We will be basing our discussion on a real land development program. We will prepare 8 to 10 slides to support the discussion. Market Research will identify a range of products acceptable in the marketplace by researching home pricing, absorption and a preferred amenity package. This information will be provided to the land planner who will develop a conceptual land plan. The financial analyst will estimate all development costs. From this information, Land Residual cash flows will be generated yielding financial metrics such as overall profit, profitability by product type, maximum investment, project duration, investment multiple, and internal rate of return. Based upon this information, the Land Owner can consider changes to improve profitability of its project.
AIA CE LU: 1
Learning Objectives
Learning Objectives
1. The Land Owner may modify a land planning process to achieve financial objectives.
2. The Land Owner will identify more effective methods to benefit from its consultants’ experience and wisdom.
3. The Land Owner will increase its focus on developing a community that will address the needs of the homebuyers.
4. The Land Owner may focus its attention in identifying the most efficient land plan.