Land Development Model – An Appraisal & Valuation Tool
Land Development
Model, An
Appraisal and Valuation Tool
is a powerful, easy to use and inexpensive
land development model. It is the result of an effort to create a model
that:
the profitability
of ‘single and multi-phase’ land
subdivisions at once;
2). Extends analysis beyond ‘gross
profit’ to ‘profit before tax’, resulting in an interest
cost
calculation based on the cumulative effect of
many land development components;
The “Snip-It” below is
illustrative of 8 of the Input Page entry cells from Versions 1, 2
and 3. The current version 4 includes new entry cells for frontage lots
and subdivision lots and removes the page links in red below. Navigation is now by tabs at the bottom of all model pages.
The land development
model requires Excel to run and is delivered over the internet
at
the time of purchase.
Price $45.00
Structure
of model
of up to three
phases in one step;
duration up to ten years;
functionality (save-as, print, passwords);
components entered on a single
input page;
pages generated simultaneously with input;
all model pages;
measures visible on input page;
Consistency section;
take
off page for pre-model entry.What
you can do with the model
single
and multi-phase subdivisions;
analysis on all development components;
effect
of absorption on profitability;
and estimate option
value;
phasing
decisions;
profit by year, phase, and project;
interest cost by year, phase, and project;
land value based on target profit ratio;
save, and print profit tables;
save, and print cash flow tables;
save, and print lot sale schedules;
effect
of seller financing on profit;
effect of seller financing on equity-in;
effect of builder deposits
on profit;
historical project information to model;
rates and ratios from the market;
timeline
concept of development process;
the effect of interest rate trends;
concept
of leverage;
concept of time value of money;
project scenarios under unique filenames;
profit before tax;
return on equity;
profit tables under multiple
scenarios;
cost/benefit analysis;
more ….
The land development
model allows for
one-step analysis of
subdivisions
with one, two, and three phases; or analysis of an unlimited number of
phases one phase at a time.
Given
the model’s capacity for simple ‘what-if’ analysis over the full
spectrum of land development components, combined with its
user-friendly excel functionality, any number of related project
scenarios and associated model results may easily be
produced,
compared, and saved under distinct filenames in a matter of
minutes.
Additionally,
the LDM comes with an accompanying file that provides for
a side-by-side comparison of a given project under 6 component
scenarios (e.g. 1 phase vs 2 phase, with and without builder deposits,
with or without seller financing, with or without residual land, etc.).
The land development
model may be used by
real estate appraisers, developers, builders, real
estate agents, lenders, instructors or anyone
having an interest in the subdivision process. A little real
estate knowledge will be helpful but is certainly not
necessary.
A novice can work with this model.
Once
you work your way through the Input Page two or three times you will
have it — besides, in addition to a Model Consistency section, there
is a “directing”
and “correcting” prompt column that keeps you on track.
The model was recently upgraded to include an intuitive data entry sequence by clicking on excel’s ‘Name Box‘ feature. Additionally, labeling and descriptions on the Input Page have been modified to align the model to the three stage land subdivision process.
A
sample land
development project – a
tutorial – is incorporated to the website.
It demonstrates first the input of land
development
components and second the significant output capacity of
the model.
Note
that the land development model
is not intended to be a several hundred or multi thousand dollar
software package, nor is it purported to be a substitute for such
products. But unless you
are in the business on a daily basis the cost of some products can be
prohibitive – not
to mention the steep learning curve that often comes with more
sophisticated products. We think even the most experienced
practitioners will find this model useful.
This model
is straightforward, fast-working and inexpensive – and completely
refundable if you are not satisfied with the product. Look
again
at what you can do with the model.
Price $45.00
If you are not yet ready to purchase the model and would like to read my narrative entitled “Land Development Basics”, (28 pages), click on the Buy Now
link below. The narrative is written from my perspective and
experience from the residential land development business
while relating various land development components such as
the timeline concept and the three stages of the land development
process directly to the LDM.
Because my internet retailer
is a for-profit organization and this is an e-product that they help
me sell, I am required to charge a minimum of $3.00.
Sorry about that!
Price $3.00
If you wish
to ask us a question about the model, ‘Contact
Us’ and we will get back to you
as soon as possible.
Land Development
Model, LLC
302 West Lafayette
Road
Medina, OH 44256
330.441.1690
