by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
Importantly, due to the liquidity in the market during the expansion, developers invested enormous sums of capital in marketing their projects. This huge expense was largely due to the fact that there were so many competing projects. This marketing cost was often...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
It is important to analyze all competing projects that have been launched or are likely to come on board within the 5-year period of the investment. Along with the characteristics of competing projects, it is valuable to understand how many units have sold, at what...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
A key question is whether the developer with which the investor considers a partnership has the capability to last through the downturn and market turnaround. Some developers may not make it through the down cycle. On this point in particular, local asset managers can...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
Along with replacement costs, it is important to understand how the new Zoning Code affects the potential project or investment. Projects that are in high-income locations and distant (defined by the Zoning Code) from a Metro or Traffic Corridor and were approved...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
This is an area where we suggest investors spend quality time. The three main costs are: one, the land costs (based on the new investor’s cost basis) and importantly the cost per square meter of net sellable area; two, construction costs; and three, development costs....
