Intro to Real Estate Development

Brief introduction to Udemy reviews and how to best evaluate this course.

This lecture provides an introduction to single family home (SFH) development. You'll learn essential SFH concepts and how to identify development opportunities.

In this lecture we'll walk through the single family home development case study. You recently flipped a residential property for a nice profit and you are looking for your next investment opportunity. You discover an empty lot in a popular neighborhood and want to run the numbers to see if a ground up development project might make sense. Should you make an offer or pass on the deal?

This lecture provides an Introduction to the single family home underwriting model, the model that you will use for the case study.

Did you decide to make an offer? In this lecture, I'll walk you through the solution, step-by-step, so that you can compare your analysis to mine.

Summary lecture for the single family home development section.

This quiz will test your knowledge of the single family home development concepts covered in the section.

Real estate development is completely different from acquisitions. In this lecture you will learn what those differences are,  the phases of real estate development, and identify the team members that you'll need to be successful.

Real estate development is risky business, but the returns are generally high as well. In this lecture you'll learn about risks that are unique to real estate development, how those risks differ when compared to acquisitions or value-add projects, and discover what returns you should be targeting for your development projects.

Timing is everything in real estate development. In this lecture you'll learn about the four phases of the real estate market cycle: expansion, hyper supply, recession, and recovery.

In this lecture you will learn about how the real estate cycle influences the supply and demand curves for space in a market, so that you can make more informed real estate development decisions.

In this lecture you'll learn about market analysis, a critical component of real estate development. We'll cover if, where, and what you should develop, as well as key metrics like vacancy, market rents, the construction pipeline, absorption, and months supply.

Managing your development budget is extremely important. In this lecture you'll learn the difference between construction costs (hard costs) and administrative/engineering costs (soft costs).

This lecture explains the operating expenses that you're likely to incur during the lease-up and stabilization period, such as management fees, taxes,  utilities, insurance, repairs and maintenance, etc.

Most commercial leases contain a reimbursement clause that enables the landlord to recover some of the operating costs associated with the property. In this lecture you'll learn more about reimbursements and how they are calculated.

In this lecture you'll learn the difference between capital expenses (CapEx) and operating expenses. While most development projects will have minimal CapEx, it's still important to know the difference.

Construction loans are very different from real estate acquisition loans. In this lecture you'll learn how construction loans work and gain a better understanding of lender guidelines (LTV, LTC, DSC, amortization period, etc.) for financing development projects.

In this lecture you'll gain a better understanding of capitalization rates (cap rates) and how they are specifically used in real estate development.

Return on cost (ROC) is an important real estate development metric. In this lecture you'll learn how to calculate ROC and how it's used in conjunction with the cap rate to determine the profit margin (yield on cost) on a development project.

This lecture provides a definition of debt yield and describes how the ratio is used in underwriting real estate development deals.

In this lecture you'll learn how to calculate and use the internal rate of return (IRR) to evaluate real estate development opportunities.

In this lecture you'll learn how to calculate and use the equity multiple to evaluate real estate development opportunities.

This lecture provides an overview of joint ventures, carried/promoted interest, and how they are utilized in structuring real estate development deals.

Summary lecture for the key concepts section.

This quiz will test your knowledge of the key real estate development concepts covered in the section.

This lecture provides an introduction to office development. You'll learn essential office concepts and how to identify development opportunities.

In this lecture we'll walk through the office development case study. You have become a successful residential home developer over the past couple of years and commercial real estate brokers are taking notice. One of those brokers has emailed you an off-market land deal that would be well-suited for a new office development. You tell the broker that you’ll run the numbers to see if the deal makes sense. What land price will enable you to achieve a levered IRR of at least 25% over 5 years?

This lecture provides an Introduction to the office underwriting model, the model that you will use for the case study.

How much are you willing to pay for the land based on the assumptions provided? In this lecture, I'll walk you through the solution, step-by-step, so that you can compare your analysis to mine.

Summary lecture for the office development section.

This quiz will test your knowledge of the office/commercial development concepts covered in the section.

This lecture provides an introduction to multifamily development. You'll learn essential multifamily concepts and how to identify development opportunities.

In this lecture we'll walk through the multifamily development case study. After successfully exiting from a recent office development project, you’re well-capitalized and on the lookout for a new development deal. You’ve received a fair amount of press and commercial brokers are hammering you with emails, touting sites that would be a great fit for your next deal. While most of the sites aren’t a good fit, there is one that looks promising. You tell the broker that you’ll run the numbers to see if the deal makes sense. What land price will enable you to achieve a levered IRR for the project of at least 20% over 5 years.

This lecture provides an Introduction to the multifamily underwriting model, the model that you will use for the case study.

Summary lecture for the multifamily development section.

This quiz will test your knowledge of the multifamily development concepts covered in the section.

Course recap lecture and thank you!

I want to introduce you to a new tool I'm using to quickly analyze wholesale deals, long-term rentals, BRRRR’s, and flips. I’ve been using DealCheck (dealcheck.io) for about a year now to:

• Organize all of the properties I’m looking at

• Automatically import comparable sales/rental, tax, and insurance data

• Input rehab and financing costs

• Determine MAO (maximum allowable offer)

• Generate a proforma to share with lenders and investors

• And more...

Even though I have the ability to create advanced financial models in Excel, I probably end up using DealCheck about 95% of the time to screen and underwrite my residential deals. It’s simple, fast, and they have a mobile app.

There's a free plan, which is fantastic. Use the discount code BRANDON for a 20% discount if you decide to sign up for one of the paid plans.