development-feasibility-quick-feaso

Development Feasibility

Run Numbers On Potential Development Projects
In Under One Minute

Why do you Need One Minute Feaso (Quick feaso)?

Property Development Feasibility In Action

Know if your project works in under one minute. [#quickfeaso]. Get more certainty while saving time & resources. Learn how to arrive at the residual land value to determine how much you should pay for the land based on it's development potential.

It is fast and every investor must know this before committing to a potential project.

Do You Get Overwhelmed By The Thought Of Doing Numbers For Your development feasibility... But Know It's Something You Have To Do If You Really Want To Succeed? If So...

It's Time To Master The Art Of Knowing Your Numbers...

Designed With Simplicity, So Even A 12-Year-Old Can Run Numbers In Under One Minute...

Dear Property Developers,


If you want to flip, develop or control any property for profit, run numbers in under a minute and separate the wheat from the chaff, faster, quicker & easier without the need to spend considerable time and resources, or even if you want to stay confident and sane throughout the entire process, then this is the most important tool to get you started.


In fact, if you know nothing about development feasibilities or real estate pro forma, then one-minute property development feasibility will help you understand numbers and how to conduct property development feasibilities in the simplest, easy to understand and comprehend way. One minute feaso is kinda like a quick feaso that allows you to run numbers on potential projects quickly and easily.


One minute feaso includes all core components of a development feasibility and the reason i created it was to make it easier for people to understand numbers in the simplest possible way.


Here's why you need to understand development feasibility...


Because in today's competitive real estate world, not knowing your numbers can mean the difference between snagging the best deal with buffer or getting stuck with a lemon!


Regards

Amber Khanna

Here's My Promise To You...

Hi,

My Name Is Amber Khanna and I'm a property developer

I've spent the last 8 years in the trenches, executed and managed projects worth $65m starting from ground zero. And the one thing that i have learned that matters the most in property development is your ability to know your numbers. So you can flip, develop or control any property for profit.

One minute development feasibility will give you the ability to vet potential projects in under one minute, even if you think you are not good with numbers.

Every minute you wait is another minute you could be sourcing & vetting your potential site and unlocking it's profits.

In My Experience 9 Out Of 10, First Time Property Developers FAIL Because Of 3 Reasons:
They Lack The Right Tools & The Knowledge To Ascertain...
  • If the Project Has Enough Profit...
  • Exactly How Much Should They Pay For Land...
  • And exactly how much of their own money they will need to complete the project...
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One Minute Feaso Works
For Most Countries
With Customisable Cost & Tax Codes Including...

 🇦🇺 Australia, 🇳🇿 New Zealand, 🇺🇸 USA, 🇨🇦 Canada, 🇬🇧 UK, 🇿🇦 South Africa, 🇯🇲 Jamaica, 🇫🇯 Fiji,

 🇲🇾 Malaysia, 🇮🇩 indonesia, 🇸🇬 Singapore, 🇭🇺 Hungary, 🇹🇷 Turkey & Most Asian Countries.

One Minute Feaso is the Short Cut to Understanding
development feasibility Study

Here's How you Anyone can do a development Feasibility...

Project Setup Made Easy

Project Setup: To set up your project, you need to input the project name, address, and relevant tax details like GST or VAT, depending on your location. Adjust the tax rate as needed, e.g., 10% in Australia or 15% in New Zealand. 33

Adding Property Details: Enter the property address, e.g., "3 Water Code, Revelry, Victoria," and use Google Maps for accuracy. 96

Currency Setup: Choose the appropriate currency symbol (e.g., dollar, pound) to format all numeric values in your project. 191

Adding Land Acquisition Costs

Understanding Acquisition Costs: Acquisition costs include legal fees, stamp duties, and other taxes associated with purchasing property. These costs are often different depending on your region. 00:00

Legal Fees: These are costs paid to a lawyer, solicitor, or conveyancer to handle the property purchase, including dealing with banks and other authorities involved. 34

Stamp Duties and Ad Valorem Tax: These are taxes levied on the property purchase, usually a percentage of the sale value. For example, in Victoria, Australia, this is 5.5%. 64

Accounting for Acquisition Costs: When entering acquisition costs, ensure to include all relevant expenses such as conveyancer fees, legal setup costs, and any applicable taxes. 126

Inputting Costs into Feasibility Tool: The video demonstrates how to input these costs into the feasibility tool, highlighting the importance of correctly entering percentages and values to reflect accurate acquisition costs. 191

GST and Margin Scheme: The video explains how to handle GST for commercial properties and when the margin scheme is applicable. It emphasises the need to check these settings for accurate cost calculations. 285

Estimating Construction Costs

Determine the Number of Units: Identify the total number of units you plan to develop, whether they are apartments, houses, or condominiums. This is the first step in estimating construction costs. 00:00

Calculate the Average Built Area: Determine the average built area per unit, whether in square meters or square feet. This metric is crucial for calculating the construction cost per unit. 31

Gather Construction Cost Estimates: Contact local construction sites or contractors to get ballpark figures for construction costs. This can be done per square meter/foot or as an overall estimate for the entire unit. 63

Input Costs into Feasibility Tool: Input the number of units, average built area, and construction cost per square meter or unit into the One Minute Feaso tool to get a construction cost estimate. 223

Consider Cost Variations: If you have more detailed information from similar projects or past experiences, use specific values for construction costs to refine your estimate. 322

Adjust for GST: If GST applies to your construction project, ensure that it is included in the cost calculations. This is particularly relevant for commercial properties. 385

Allocating Various Development Costs In Your Feasibility

Determine the End Value of Units: Research the selling price of similar units (e.g., two-bedroom apartments or three-bedroom townhouses) in the area. This helps in estimating the gross realization value (GRV). 00:00

Calculate Land Value per Unit: Input the land value, which gets automatically divided by the number of units to determine the land value per unit. 32

Construction and Consultants Costs: Determine construction costs and add a contingency percentage (e.g., 5%). Consultants' fees are usually calculated as a percentage of construction costs. 95

Council Contributions: Calculate council contributions, which vary based on local regulations. This is often a percentage of the land value. 376

Marketing and Legal Costs: Allocate costs for marketing, legal fees, and miscellaneous expenses. These are often estimated per unit. 696

Finance Costs: Calculate finance costs based on the loan-to-value ratio (LVR) or loan-to-cost ratio (LTC). This depends on whether the lender bases the loan amount on total development costs or gross realization value. 790

Estimating Project Timeline

Determine the Holding Period: Identify the time between purchasing the land and starting construction. This period includes obtaining planning approvals and consulting with professionals. 00:00

Finance for Land Holding: Understand the financing options for holding the land before construction begins. Different loans may apply for land purchase versus construction. 65

Leverage and Loan-to-Value Ratio (LVR): Consider borrowing money to maximize the return on equity by leveraging, which involves using loans to finance part of the project. 128

Construction Loan and Utilisation: Determine the maximum amount of money you can borrow for construction and how it will be drawn progressively during the project. 285

Calculate Interest During Construction: Include the time taken for construction and the period required to repay the lender, typically upon the sale of the completed units. 469

Buffer for Construction Time: Allow for extra time in your construction timeline to account for unexpected delays, ensuring accurate finance calculations. 532

Target Development Margin / Yield On Cost

Determine Target Development Margin: The target development margin is used to calculate the residual value of the land, which represents the maximum price you should pay for a site based on its development potential. 00:00

Calculate Residual Land Value: Set a desired development margin (e.g., 15%) for a small site, and the tool will calculate the maximum land price you can afford to pay to achieve this margin. 31

Negotiate Land Price: Use the calculated residual land value to negotiate with the seller, ensuring you meet your development margin target while accounting for all project costs. 96

Feasibility Analysis Purpose: The primary purpose of the feasibility analysis is to determine the maximum land price you can pay while still meeting your project’s financial goals. 127

Property Development Feasibility Summary

Developer Margin Calculation: The developer margin is calculated based on both costs and revenue, showing the profit margin on the project. 00:00

Profit Per Unit: The tool calculates the total profit per unit, which helps in understanding the profitability of each unit in the development. 30

Land Value vs. GRV: The summary compares the land value to the gross realization value (GRV) to assess the project's viability. 61

Construction Costs: Construction costs are compared to total development costs and GRV to ensure they are within a viable range (typically less than 40% of total costs). 94

Return on Equity: The return on equity is calculated based on the amount of borrowed money and the project's revenue, indicating the project's financial efficiency. 124

Calculating Return For Your Investors

Determine Capital Raising Needs: Estimate the total amount of money needed for the project, which will be raised from investors. 00:00

Round Up Total Costs: Round up the total project cost to a manageable figure, ensuring it is presentable and easy to justify to investors. 31

Set Value Per Share: Calculate the value per share based on the total amount to be raised and the number of shares issued. Adjust as necessary for investor presentation. 92

Subscription Value Calculation: Determine the subscription value, representing the amount of money to be raised from investors. Adjust based on your own contributions and the amount already invested in the project. 153

Investor Return on Equity (ROE): Calculate the return on equity for investors, which shows the percentage return they will make based on their investment. This differs from the overall project return on equity. 215

Investor Profit Share: Establish the profit share for investors, based on the total amount raised and their ownership percentage in the project. 247

Determine Minimum Investment Requirement: Set a minimum investment amount per investor, ensuring compliance with regulations and simplifying management by limiting the number of investors. 278

Adjust Share and Profit Distribution: Finalise the number of shares and the corresponding profit each investor will receive, ensuring transparency and clarity in investor communications. 375

Sensitivity Analysis

Introduction to Sensitivity Analysis: Sensitivity analysis helps assess the potential impact of changes in sales values and costs on your project's profitability. 00:00

Adjusting Sale Value and Cost Scales: Change the increments or decrements for sale values and costs to see how different scenarios affect project outcomes. 31

Impact on Profit per Unit: Analyze how changes in sales value and costs influence profit per unit, which provides insight into the project's financial viability. 92

Effect on Development Margin: The analysis also shows how development margins change under different scenarios, helping to identify the project's financial resilience. 155

Evaluating Return on Equity: The analysis considers the effect of different scenarios on the return on equity, especially when leveraging financing. 186

Worst-Case Scenario Planning: Use the sensitivity analysis to understand worst-case scenarios, ensuring the project can withstand potential adverse conditions. 279

How Much Do You Need?

Discover exactly how much of your own money do you need to maximize profits

Fast Track

Skip past all the mistakes and obstacles that stop most real estate developers starting out

Sensitivity Analysis

Have more certainty when you have assessed the impact of cost and sales to your bottom line in different scenarios. What if sales go down & costs go up or vice versa, run sensitivity for various scenarios

Confidence & Clarity

Confidence and clarity is the key. As you run numbers on multiple projects, your confidence to move forward with the project will strengthen

Negotiate Better

Know how to negotiate a contract based on numbers & highest best use of the site without letting your emotions cloud your judgement

Raise Capital

You'll know exactly how much capital you need to raise from investors so you don't have to put in any of your own money

Development-Feasibility-Calculator-Testimony

I was impressed – your “BoE” models are more detailed and well presented than most I’ve seen.

Bill Rodney

Senior Lecturer In Real Estate Finance, Investment And Valuation At Cass Business School & Director I-Analysis Training

Number's Don't Lie!

Your chances of landing the right profitable deal increase exponentially with the right tool.

  1. 1
    Confidence and clarity is the key. As you run numbers on multiple projects, your confidence to move forward with the project will go up.
  2. 2
    Vet potential projects in under one minute with speed & simplicity.
  3. 3
    Only pay what the site is worth based on its highest best use.
  4. 4
    Find out how much capital you need to raise to do a no money down deal.
  5. 5
    Understand the one concept behind capital raising.
  6. 6
    Calculate development margin on cost & revenue.
  7. 7
    Calculate residual value of land.
  8. 8
    Conduct sensitivity analysis & assess the impact to your bottom line if sales & costs go up or down.
  9. 9
    Cash on cash return or Return on equity & more decision metrics...
  10. 10
    Calculate finance and Interest costs on land & construction.