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bjbjLULU Hello my name is Brian Linnekens and I am the president of Global Innovation
Development. Real estate development projects can be broken down in to seven phases: feasibility,
design, financing, construction, marketing, operation and management. Many of these phases
are considered critical path items, meaning that they must be undertaken and completed
prior to moving on to another phase; whereas several of them can be undertaken simultaneously.
Understanding how these phases work together is critical to ensuring that your project
does not suffer from wasted time, and consequently, wasted money. For example, your marketing
efforts really begin immediately after the feasibility is completed and you begin developing
design boards. This allows you to begin generating awareness of excitement about your project
as soon as you have the initial renderings to show to the public. Likewise, design and
financing usually overlap because the developer wants to use as much time as possible after
feasibility to attract and secure the best financing terms and if the developer were
to wait until after the design was complete to begin his search for financing he would
certainly unnecessarily delay the project. On the other hand, there are several stages
which must be completed prior to moving on to the rest. As an example, the feasibility
study must usually be completed prior to discussing the project with any financing source as they
will require that information in their diligence and evaluation of the opportunity. Likewise,
construction usually can not begin without the financing, unless the developer himself
makes the choice to self fund the initial phases of construction, like demolition and
grading. But the sequence of steps, and even the steps themselves, change frequently in
real estate development. This is actually one of the major reasons that smaller developers
can complete with the larger development firms because they are more able to adapt quickly
as conditions change. But smaller developers must make absolutely sure that, in their zeal
to move quickly, they don t take shortcuts on quality. Just like constructing a building,
the success of the development process relies on the strength of its prior stages. You can
t properly build a roof on a house unless you have first properly laid a strong foundation
and constructed square walls. Likewise, you can t properly finance a project unless you
have been thorough in your feasibility and initial design. Because the success of each
stage so strongly relies on the quality of the prior stages, every developer must make
sure to pay attention to detail and not rush through the stages in an effort to gain ground.
If they do, they will most certainly surrender that ground, and more, later on down the road.
So, if you are planning the staging of your project, be sure to identify those certain
critical path stages, and overlap the rest to ensure the most effective use of your time.
But also, make absolutely sure not to rush hastily through any particular stage, or you
may find that your entire project has been built on quicksand. Good luck and have a great
day. hz=w On+r Brian Linnekens Normal Brian Linnekens Microsoft Office Word Title