Real Estate Project Feasibility

Technology is now putting high level expertise power in the hands of anyone interested in residential and/or commercial real estate investment, development, acquisition, construction, flipping, leasing, sales and management of real estate projects. Online sources and technology can help remove the “risk factor” in real estate projects and make it easier to fund and finance projects while avoiding typical high costs and delays of hiring a consultant to analyze, document and validate a real estate project.

A comparative market analysis, feasibility analysis, market study and/or financing and development plan are a must for most real estate projects for many reasons, including:

  • Internal analysis of the project and profitability prior to investment
  • Structure for project financing, equity investment, partnerships and other funding options
  • Understand the true value and market potential of the project
  • Obtain local approvals and government incentives
  • Marketing, leasing and sales analysis
  • Budgeting, estimating and bidding

Real estate projects must be assessed to determine their viability. This typically involves numerous hours of research to understand costs, values, expenses, revenues, rates, terms and other variables. The information has to be gathered, analyzed, compiled, formatted, reviewed, validated and prepared in a professional manner for financing, equity funding, partnerships, marketing, sales, leasing, or simply for internal assessment. Experts and amateurs often tackle the daunting task on their own, but many hire consultants to analyze their vision and objectives and prepare reports such as feasibility analysis, market analysis, development analysis, financing/development plans and site plan designs. Today, all of this can be achieved in a professional and expedient manner online while avoiding long conversations with third parties, waiting for proposals, and paying high fees to multiple professionals.

Finding the right professional can be difficult, and engaging them to analyze a real estate project and to prepare professional documents can be expensive. Time is also expended by the consultant for preparation of these documents, usually in excess of 30 days. With this in mind, an online professional service can be an effective way to avoid these high costs and lengthy time-frames without compromising quality. With professional online technology, any real estate project can benefit from high-level expertise, and obtain professional reports and documentation quickly, easily and at a fraction of the normal cost. The documents are specific to the client’s projects and area, they are of highest quality and accepted by lenders, investors, financing institutions, and the most sophisticated organizations.

One of the keys that enable online technology to accomplish speed, quality and low pricing is a streamlined information gathering process. While the normal process in the industry requires a meeting with a consultant and time to describe the project, vision, processes, financial details, and all other aspects of the project; A professional online process is typically easier, faster and puts the control in the hands of the client. The client typically completes an online form by answering specific questions, providing as much information as possible about the project, entering narrative descriptions, and uploading any files and images. A professional team is then able to retrieve local market and industry data, then tailor the documents so that they are specific to the area and project utilizing a high level of expertise. The end results are feasibility analysis reports and financing/development plans and documents of high quality that facilitate financing, funding, and provide a deep level of analysis regarding the client’s project. A financial pro forma is usually included in every feasibility analysis and financing/development plan to structure the project for financing and funding. This enables the client to have professional financials while exerting minimal time and effort, and spending less money on consulting fees.

Whether you chose to hire a consultant directly or use a professional online service, third party analysis and validation of your real estate project is always recommended to help secure equity funding, conventional financing, joint venture partnership participation, government approvals, and government incentives (such as tax increment financing).