The Why Principle
Presentation and capability is almost as important as the project itself.
The Why Principle, Part I
This video explores the why principle-why does this project make sense, why should I give you my money. In this section we take all the information gathered in the diligence or feasibility stage and put it into a format that we and others can understand, appreciate and evaluate. This is where we attempt to justify the developers time, money and effort in pursuing the project and whether or not it will be attractive for others to participate and invest in. This specific video explores the cost or budget of a typical commercial real estate development.
The Why Principle, Part II
Using the typical three legged bar stool as an analogy we discuss how the platform of the stool is like the project plan and summary while the three legs are the support to the stool-you need all three or it falls over. The first video explored cost, this video discusses the business of the project once its built and full of tenants.
The Why Principle, Part III
In the first two parts of the why principle we explored the two distinct businesses associated with developing commercial real estate; getting it built and tenants moved in and paying rent and then operating the project like any other business. To do this we explored the cost associated with getting it built and then the profit and loss statement or operating financials of running the business. For the third video we explore profit. Can the project make money for both the developer and the investors?