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Ron Forlee

A comprehensive course for Residential Developers and Investors.

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A comprehensive course for Residential Developers and Investors.

If you intend making a career in Residential Real Estate Development, then this in-depth course is a must. While the course “An Intelligent Course on Real Estate Development” provides an overview of real estate development, this thorough course covers all aspects of Residential Development and investment. The content is extensive that it had to be split into two sections namely, (a) Principles and Process and (b) Asset Classes or types of residential projects. Part A “Principles and Process” covers areas of the residential development process in detail and tips on each aspect. While this course is based within the Australian context, the development principles apply to many other countries as well.

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What's inside

Learning objectives

  • How to be a step ahead in the residential development market
  • The laws of supply and demand in the residential market and its effect on value
  • How to analyse the trends and movement in the residential market
  • How to undertake a viability analysis before committing to purchase a site
  • How start small a project then advance to a larger one over time
  • What are the key drivers that will make buyers want your product over the competition?
  • How to spread your risk and maximise your profits
  • How to profit from residential developments with less competition.

Syllabus

Introduction

· Growing markets

· Control your destiny

· Leverage your capital

· Bricks and mortar

· Capital growth

· Passive Income

Read more

· Introduction

· The demand for housing

· Developing versus investing

· Residential versus commercial real estate

· Risks in residential developments

· Rewards in residential developments

· Conclusion

· Introduction

· The Investor

· The Developer

· Start at a suitable level

· Investment Strategies

· Development Strategies

· To Sell or to Rent?

· Personal Management

· What Type of Investor are you?

· What Type of Developer are you?

· Can you manage the Risk?

· Conclusion

· Introduction

· When is the right time to develop?

· Why do people move?

· Who are the probable buyers?

· What are buyers looking for?

· Where do buyers purchase?

· Where can market information be accessed?

· Conclusion

· Introduction

· The Stages of Residential Development

· Stage 1 — Inception

· Stage 2 — Preliminary Assessment

· Stage 3 — Acquisition

· Stage 4 — Planning, Cost Estimates, Approvals

· Stage 5 — Commitment and Marketing

· Stage 6 — Technical

· Stage 7 — Construction

· Stage 8 — Implementation

· Conclusion

· Introduction

· Building a business network

· Build a team of professional advisers

· Working with an architect or building designer

· Conclusion

· Introduction

· Analysing the location

· Analysing the physical characteristics

· Analysing the social characteristics

· Analysing governmental controls

· Analysing the economic characteristics

· Analysing real estate market trends

· Review the legal matters

· Conduct a pre-purchase feasibility

· Gathering site information

· Preparing to make an offer to purchase

· The dos and don’ts of site selection

· Conclusion

· Introduction

· Cost and income examination

· Evaluating your profit

· Analysing the returns

· Undertaking a feasibility study

· Preparing an information memorandum

· Methods to reduce costs and increase profits

· Conclusion

· Introduction

· Debt financing

· How to deal with a lender

· Major sources of development finance

· Costs and charges of raising finance

· Methods of raising finance

· Types of interest rates

· Development construction loans

· Guarantees

· Sourcing the best development finance

· Do’s and don’ts when dealing with finance

· Conclusion

· Introduction

· Choice of development vehicle

· Development through sole ownership

· Development in joint names

· Development by tenants in common

· Development by partnership

· Development by a company

· Development by a discretionary trust

· Developments by syndication

· Developments by joint venture

· Conclusion

· Introduction

· Understanding the goods and services tax

· Understanding negative gearing

· Understanding the depreciation allowance

· Understanding capital gains tax

· Understanding land tax

· Understanding stamp duty

· Tax laws applied to non-resident developers

· Conclusion

· Introduction

· Torrens title

· Strata title

· Other forms of title

· Certificate of title

· Ownership transfer

· Conveyancing

· Settlement

· Encumbrances

· The function of a body corporate

· Conclusion

· Introduction

· How governmental organisations function

· Regulations to consider before site acquisition

· Planning and development applications

· Building approvals

· Working with government authorities

· Conclusion

· Introduction

· Successful site development planning

· Successful design ideas

· Minimum space requirements

· Design brief

· Sketch designs

· Working drawings

· Specification

· Tender documents

· Conclusion

· Introduction

· Types of contractors

· The role of a contractor

· Finding and selecting a suitable contractor

· Building contracts

· Types of contracts

· The main items a contract should cover

· Types of insurance

· If in doubt seek advice

· Construction

· Conclusion

· Introduction

· The purpose of marketing

· Finding the right marketing professionals

· Understanding the residential market

· A developer’s approach to marketing

· Display homes and units

· Sale price terms and conditions

· Preparing a successful sales package

· Sale transactions

· Selling off plan

· Achieving profitable sales

· Conclusion

· Introduction

· Why sell or hold?

· Why some developers hold

· Who should manage your property?

· Managing through an agent

· The management agreement

· In house management

· Tenant leases

· Conclusion

· Social awareness

· Concern for the environment

· Passion for excellence

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Provides an overview of the stages of residential development, from inception and preliminary assessment to implementation, which is essential for those looking to enter the field
Explores various development strategies, such as developing versus investing, and deciding whether to sell or rent, which are crucial for maximizing returns
Examines the legal and governmental aspects of residential development, including regulations, planning applications, and building approvals, which are critical for compliance
Discusses the importance of building a professional network and working with advisors like architects, which is helpful for navigating complex projects
Focuses on Australian context, so learners outside of Australia may need to adapt the principles to their local regulations and market conditions
Covers tax laws related to residential development, including GST, negative gearing, depreciation, capital gains tax, and land tax, which are subject to change

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Reviews summary

Introduction to residential real estate development

According to students, this course provides a broad and practical overview of the residential real estate development process. Learners appreciate the step-by-step breakdown covering topics from site analysis and finance to marketing and construction. While rooted in the Australian context, many find the underlying principles widely applicable. Some note that as 'Part A', it focuses on process and requires the subsequent course for a complete picture, and while comprehensive, it might feel introductory in specific complex areas. Overall, it is seen as a solid foundation for aspiring developers and investors.
Requires Part B for full scope.
"Realized after completing this that Part B is needed to cover asset classes."
"Part A provides a solid foundation on the process, but the full picture involves Part B."
"Understand now that this covers principles and process, not all residential types."
Course based on Australian market.
"It's definitely focused on the Australian market, which was perfect for my needs here."
"As someone outside Australia, the principles are universal, but specific legal/tax info is less relevant."
"The Australian context means some regulations and specifics won't apply globally."
Well-organized, step-by-step learning.
"I liked the clear, step-by-step structure, covering development from inception to implementation."
"The stages of development section was particularly clear and easy to follow."
"The content is well-organized, building chapter by chapter logically."
Offers practical insights for developers.
"The focus on feasibility studies and site analysis felt very practical for actual projects."
"I gained practical strategies for navigating finance and dealing with lenders."
"Good insights on working with contractors and effective marketing approaches."
Covers many essential areas.
"This course covers a wide range of crucial topics, giving a holistic view."
"I appreciate how broad the coverage is, touching on finance, planning, marketing, and more."
"It really does look into most essential parts of the development process."
May lack depth in complex areas.
"While broad, it felt a bit introductory when discussing complex financial topics."
"Could benefit from more in-depth coverage on intricate legal structures or tax planning strategies."
"It's a great overview, but advanced learners might find some sections lack detail."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Residential Real Estate Development and Investment - Part A with these activities:
Review Basic Financial Concepts
Refresh your understanding of core financial principles. This will help you better grasp the viability analysis and investment strategies discussed in the course.
Browse courses on Time Value of Money
Show steps
  • Review key financial ratios and formulas.
  • Practice calculating net present value.
  • Familiarize yourself with financial statements.
Read 'Real Estate Development: Principles and Process' by Mike E. Miles
Deepen your understanding of the real estate development process. This book provides a structured approach to development principles.
Show steps
  • Read the book, focusing on market analysis.
  • Take notes on key concepts and examples.
  • Relate the book's content to course lectures.
Read 'The Real Estate Game' by Poorvu and Boyle
Gain a broader understanding of real estate development principles. This book offers real-world examples and case studies to enhance your learning.
Show steps
  • Read the book, focusing on development strategies.
  • Take notes on key concepts and examples.
  • Relate the book's content to course lectures.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Conduct a Preliminary Site Assessment
Apply your knowledge of site selection and analysis. This hands-on project will solidify your understanding of key factors in residential development.
Show steps
  • Identify a potential residential development site.
  • Analyze the location and physical characteristics.
  • Assess governmental controls and market trends.
  • Prepare a brief pre-purchase feasibility report.
Attend Local Real Estate Events
Expand your network and learn from industry professionals. Networking can provide valuable insights and potential opportunities.
Show steps
  • Research local real estate events and meetups.
  • Prepare a brief introduction about yourself.
  • Attend the event and network with attendees.
  • Follow up with contacts after the event.
Develop a Pro Forma Financial Model
Master the financial aspects of residential development. Creating a pro forma model will help you evaluate project viability and potential returns.
Show steps
  • Gather data on project costs and revenues.
  • Build a spreadsheet model to project cash flows.
  • Calculate key financial metrics like NPV and IRR.
  • Analyze the sensitivity of the model to key assumptions.
Write a Blog Post on Residential Market Trends
Solidify your understanding of market analysis by writing about current trends. This will help you communicate your knowledge effectively.
Show steps
  • Research current trends in the residential market.
  • Outline the key points you want to cover.
  • Write a blog post summarizing your findings.
  • Share your blog post on social media.

Career center

Learners who complete Residential Real Estate Development and Investment - Part A will develop knowledge and skills that may be useful to these careers:
Residential Real Estate Developer
A Residential Real Estate Developer manages all aspects of creating housing projects, from initial concept to completion. This role requires a deep understanding of market trends, financial viability, and construction processes. This course focuses specifically on residential development principles and processes, including detailed analysis of market demand, site selection, and financial evaluation, which is essential for a successful Residential Real Estate Developer. The course's emphasis on the stages of development and methods to reduce costs will help build a solid foundation for this position. This course provides the specific knowledge to thrive in residential development.
Real Estate Development Consultant
A Real Estate Development Consultant provides expert advice to developers on all aspects of a project, from initial planning to marketing. This position benefits from a broad knowledge of the development process. The course provides a complete overview of residential development—including market analysis, site selection, financing, construction, and sales—which is essential for a Real Estate Development Consultant. The course’s detailed breakdown of each stage in development, and the tips for success, will help an aspiring consultant.
Real Estate Development Project Manager
A Real Estate Development Project Manager oversees the day-to-day operations of a development project, ensuring it stays on schedule and within budget. This position requires a strong understanding of the various phases of development. This course covers the stages of residential development in detail, from inception to implementation, including planning, cost estimation, and approvals. A Real Estate Development Project Manager can use the course's focus on cost reduction and profit maximization to deliver successful projects, and this course will provide the principles and processes needed to succeed in this career.
Property Development Finance Manager
A Property Development Finance Manager is responsible for securing funding for development projects and managing the financial aspects of these projects. This requires a deep understanding of debt financing, interest rates, and investment analysis. This course specifically covers debt financing, how to deal with a lender, and sources of development finance. The course also touches on tax implications and methods to reduce costs and increase profits, directly contributing to the responsibilities of a Property Development Finance Manager. This course provides the knowledge necessary to be successful in this career.
Land Development Manager
A Land Development Manager oversees the process of converting raw land into building sites. This includes site selection, planning approvals, and coordination with contractors. This course provides vital information on analyzing locations, physical characteristics, governmental controls, and legal matters in site selection. A Land Development Manager can use the insights on preparing a feasibility study and working with government authorities, as covered in the course. This course provides the information needed for this role.
Acquisitions Manager
An Acquisitions Manager identifies and secures properties for development. This demands a keen awareness of market conditions and property values, as well as the financial analysis needed to make sound purchase decisions. This course covers site selection and pre-purchase feasibility, including the analysis of location, physical and social characteristics and economic characteristics. An Acquisitions Manager will benefit from the course's analysis of market trends and governmental controls. This course helps build a foundation for anyone seeking a role in property acquisition..
Real Estate Marketing Manager
A Real Estate Marketing Manager develops and implements marketing strategies to attract buyers or tenants for development projects. This position requires understanding market trends and buyer preferences. This course delves into understanding the residential market, finding marketing professionals, and preparing successful sales packages. The course includes information about display homes and units, and achieving profitable sales, which are directly applicable to a Real Estate Marketing Manager's role. A Real Estate Marketing Manager will benefit from this course.
Construction Manager
A Construction Manager oversees the building process of a development project, managing contractors and ensuring projects are completed on time and within budget. This role requires understanding contracts, construction processes, and risk management. This course includes information on working with contractors, types of building contracts, and insurance. The course’s introduction to the technical and construction stages of residential development is directly applicable to a Construction Manager's tasks. This course may be useful for this career.
Real Estate Investment Analyst
A Real Estate Investment Analyst evaluates potential real estate investments, focusing on financial viability and market trends. This role requires a strong ability to assess the risks and rewards of various projects. This course directly addresses these skills. It provides in-depth information on market analysis, feasibility studies, and financial evaluation, specifically within the residential sector, which is essential for a Real Estate Investment Analyst. The course's learnings on debt financing and return analysis will prove invaluable for this position in making informed investment decisions. This course may be useful for this career.
Real Estate Analyst
A Real Estate Analyst studies market trends and data to provide insights for investment and development decisions. This involves thorough research, data analysis, and reporting on market conditions. This course covers analyzing trends and movement in the residential market, as well as understanding buyer behavior. The course also guides on where to access market information. A Real Estate Analyst will benefit from learning to conduct market analysis and interpret data, which is key for this role. This course may be useful for this career.
Real Estate Portfolio Manager
A Real Estate Portfolio Manager oversees a collection of real estate assets, maximizing their value and performance. This requires knowledge of investment strategies, property management, and market conditions. This course covers investment and development strategies, including renting versus selling options, and offers insights into property management and tenant management. This course may be useful for a Real Estate Portfolio Manager, especially for those involved with residential assets.
Property Manager
A Property Manager oversees the day-to-day operations of rental properties, including tenant relations and maintenance. Many Property Managers oversee residential properties. While this course does not focus on operations, it does touch on property management, including hiring agents, and creating management agreements. The course also discusses tenant leases. A Property Manager will find this course useful to better understand how to manage properties to maximize their value, and how to handle tenant relations. This course may be helpful for this career.
Real Estate Broker
A Real Estate Broker facilitates the buying, selling, and renting of properties. This role requires understanding market trends, property values, and sales processes. This course covers analyzing trends in residential markets, attracting buyers, and conducting sales transactions. While the course focuses on development, a Real Estate Broker should have a strong grasp of the development process. This course may prove useful.
Urban Planner
An Urban Planner develops plans for land use and community development, often working with governmental bodies to ensure projects align with regulations and community needs. Although this course is not directly focused on urban planning, it does touch upon governmental regulations and working with relevant authorities for planning and development applications. An Urban Planner can use the knowledge of land evaluation and the development process. This course may be helpful.
Appraiser
An Appraiser assesses the value of properties for various purposes such as sales or development. This requires understanding real estate market trends and property characteristics. This course offers guidance on analyzing the physical, social, and economic characteristics of sites. It also covers the analysis of market trends. An Appraiser may benefit from the course's focus on market analysis and valuation in residential real estate. This course may be helpful for this career.

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Residential Real Estate Development and Investment - Part A.
Provides a comprehensive overview of real estate development and investment. It covers various aspects of the development process, from site selection to financing and marketing. It offers practical insights and case studies that complement the theoretical concepts taught in the course. This book is commonly used as a textbook at academic institutions.
Provides a detailed overview of the real estate development process. It covers topics such as market analysis, site selection, financing, and project management. It valuable resource for understanding the complexities of residential development. This book is commonly used as a textbook at academic institutions.

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