This is part of the Development Overview Series.

A common question that a developer has to answer throughout the life of a project is how much the project is worth or how much they believe it will sell for.

In this post of the development overview series, we will explain entitlement.

In real estate development, entitlement refers to the development rights of a property.  If a land owner wants a new use to be established, obtain variances from the zoning code, change zoning or the general plan designation on a property, then they will have to go through an entitlement or a discretionary approval process which means that the agency or jurisdiction does not have to approve it.

In our last post, we discussed the various funding sources to start your project.  In this post of the development overview series, we will explain the construction loan. 

Once you have acquired the land, designed and obtained permits for your project, then you will be ready to move into the construction phase

This is the next post in our development overview series.  Assuming that the idea passes due diligence with flying colors, then you will need to secure the funds necessary to complete the project.  Before you approach investors, they will want to know the following:

• Who you are and why should they invest ? Investors want to know if you are trustworthy and capable of completing a successful project

Suppose you have a development idea, and you would like to bring it to fruition.  First and foremost, you need to validate your idea through a due diligence process that includes zoning analysis, market data research, financial modeling and discussions with trusted advisors to determine if it is feasible.

This will begin our development overview series.  We hope this will shed some light on the development process as well as share some of our thoughts. 

One of the most common questions we receive is how to get started in the development business.  That is a difficult question to answer as it involves many parts.