Description

How do we reduce the time and cost associated with pre-development on commercial real estate projects? In this episode, Shane tackles his three successful strategies: focusing on projects that have a good chance of succeeding, researching the market, and making wise decisions about soft costs. Listen in, and don't forget to reach out to get a copy of his predevelopment checklist!

[00:01 - 04:31] Pinpointing the Common Struggles in Real Estate Development

• Going deep on pre-development
• • Comment the word "checklist" below to get a copy of the pre-development document I use!
  • Check it out here: https://www.melansondevelopments.com/checklist  
• The common struggles of development
• • People spend too much time on the wrong projects and waste money upfront.
  • Do not underestimate the actual cost and avoid being undercapitalized.

[04:32 - 10:47] Your Checklist for Predevelopment

• #1: Feasibility
• • Do your research and determine the site selection, zoning, and density. 
• #2: Market demand
• • Find locations where there are already expensive houses. Check the community.
• #3: Pro forma
• • Soft costs are outside the budget spent on other essential expenditures such as consultancy. Sometimes, this entails withdrawing funds from your account.

[10:48 - 12:20] Closing Segment

If you are interested in my coaching and consulting program, please reach out to me through email at  shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word "coaching" on the body or subject line.

You can also follow me on Linkedin, and Twitter. If you would like to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money.

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Tweetable Quotes:

"What they [people on developing real estate] struggle with is they're spending time on the wrong projects, wasting money upfront on consultants, architects, on a property that fundamentally doesn't work. And then generally, what happens is they are undercapitalized, meaning they don't have enough money, because they have underestimated the true cost of what that project is going to really run them." - Shane Melanson

"if you're new to developing, I would strongly advise finding sites that are already zoned properly." - Shane Melanson