Objective:

Finance

Cash Flows, Proformas, Debt Schedules, and More

Accounting for and keeping track of the ever changing finances in a development project from the very beginning is vital. For anyone with money in the project, keeping the most accurate and up-to-date records of finances ensures that their money is being used in an effective, meaningful way, and will give insight into the time it will take to see a return.

LDEV 663 - Project Management

The MLPD Project Management course introduces students to a vast range of what it takes to make a development project work. Where finance is concerned, students are given worksheets to complete where they learn cost allocation and cost costs, invoice tracking, budgeting, bonds and bids, as well as information about HOAs, MUDS, TIRZ, and more.

LDEV 668 - Residential Development

LDEV 668 also encompasses a wide variety of development process tasks. Finance wise, the students are exposed to more budgeting and cost estimate assignments, as well as an on-going, semester-long Discounted Cash Flow (DCF) analysis that helps students truly grasp the basics of development financials.

The project requires students to input several assumptions that are given including lot price, acreage, initial costs, interest and tax rates, important dates and timing variables, as well as some preliminary budget variables and estimates. With these inputs, a Sales Proceeds analysis, Cash Flow analysis, and Debt Schedule are completed, which in turn produces additional financials the students are tasked with calculating including:

  • Total Revenue

    • Sales with Escalation

    • Other Revenue

  • Total Cost

  • Profit

  • Absorption

  • IRR

  • Loan Values and Estimates

  • as well as Return Times for Investors

Click the Button below to see the results of the Final Discounted Cash Flow project