Property Development Financial Feasibility

Advance Decision Metrics

  • Net Present Value (NPV)

    Understand the context behind NPV and calculate both Project and Equity NPV based on your hurdle rates. Understand what the future cash flows mean today.

  • Internal Rate of Return (IRR)

    Calculate both Project and Equity IRR. Understand what the impact of time on your project returns.

  • Interest & Cashflow Coverage Ratios

    Find out what banks are looking for in your feasibility. WOW your lenders and investors alike.

  • Development Margin

    Development Margin on Cost Development Margin on Revenue Calculate profit / unit & for the project

  • Return on Equity / Cash on Cash Return

    Return on Equity / COC Return Return on Equity / COC Return / Month Return on Equity / COC Return / Annualised

  • Benchmark Construction Costs

    Construction Vs TDC (Total Development Costs) Construction Vs GRV (Total Sales)

  • Developers Equity Contribution

    Never fall short of cash. Determine cash and equity requirements by month and by stages.

  • Set Target Hurdle Rates

    Set hurdle rates for Residual Value of Land, NPV and calculate your Weighted Average Cost of Capital (WACC).

  • Model Contingency Scenarios

    Conduct your own Sensitivity Analysis - Determine what happens when your costs go up and sales go down in 3 scenarios: 1) Development Profit, 2) Dev. Margin on Cost, 3) Return on Equity / Cash on Cash Return

  • Cashflow Analysis

    Distribute your costs across your timeline using normal distribution and S-Curves and get a clear picture of monthly cashflows as well as cashflows required by stages.

  • Bank & Developers Summary

    Get both a summary of project returns for your bank and one for yourself. There are costs that your lenders does not need to see, keep them to yourself and only show your lender what they need to see.

  • Project Related Site Value

    Common valuation method used by commercial valuers to value DA approved sites. This is where we look at gross realizations and deduct all costs of development to arrive at your Project-Related Site Value.

Course curriculum

Investment Options

1 Time Payment - Detailed financial feasibility training and feasibility study application. Lifetime Access & Upgrades

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