Tuesday, April 27, 2010

Financial benefits from pro-forma and design


In the real estate market cycle, demand and supply points are different. In the risk consideration of the development, market, location and financial issues should be considered in the proposed project. The developer makes financial assumption plan based on the current or future business market with potential risks. Market analysis and detail study of market condition is one of the important things because it realizes as aspect of a proposed project with needs for targeted market. And financial feasibility study is done for acceptable potential market and the analysis of a satisfactory return on investment for project. Making asset strategy for success and creating relationship between financial networks is important. Without market analysis or detailed study of market conditions, the projected pro forma does not accurately estimates the potential income and future sales. Essential design saves the cost of construction and result in financial benefits.