The Market Seen from the Street: Real Estate Consulting Service - Preliminary Feasibility Analysis and Business Plan Development

One of the professional goals for this year is to share more about the processes I deal in real estate field, contributing to the sharing of knowledge, promoting debate, and consolidating learning.

Over the past years, I have developed and created numerous Preliminary Feasibility Analysis studies (Related Article: https://bit.ly/3EIFm1n) and Business Plans (Related Article: https://bit.ly/3vtJy3j) for residential projects, always with the goal of supporting the decisions of clients and potential clients.

I believed that delivering value in a phase where projects are not well defined could increase the likelihood of participating in them if there was progress. However, as we all know, for various reasons, the probability of securing the role of Real Estate Developer in a development project when the land is not yours is extremely low.

As a result, many projects progressed, but I ended up not participating because they were sold. Others did not progress, and I also remained on the sidelines.

I have always tried to think long-term, 'sacrificing short-term results. I don't know if it was the right or wrong strategy, only time will tell.Today, I consider it an investment, nothing more. All investments carry associated risks.

I had the opportunity to participate in the creation and conception process of fantastic projects, varying greatly in scale. Some were executed, and for others, I still have hope for execution. The majority did not move forward.

I learned a lot from everyone involved (Related Article: https://bit.ly/3Y7O55S). I created processes. I took risks. I´ve made right decisions. I´ve made wrong decisions.

Above all, I made decisions and built relationships.

The real estate development activity is not easy. Aligning all stakeholders to make development projects viable is complex. I am constantly learning new things, that's a fact.

In theory, all of this seems poetic. In practice, it's tough. It requires balance.

In 2023, faced with a scarcity of new real estate projects in the pipeline, I decided to validate a new 'product' within the scope of the real estate consulting services I provide.

After several tests with some clients, I discovered the real value that practical knowledge can bring to the processes of Preliminary Feasibility Analysis and Business Plan Creation for Development Projects. In fact, I didn't discover anything. It was the clients who brought to my attention the results and the impact it had on their decision-making.

As we all know, Excel can handle everything. Real projects, however, can't handle everything when they move from the realm of ideas and/or paper. Practical knowledge makes a significant difference.

Given the above, I have been talking to various players in the real estate sector who often need support in decision-making, including:

• Real Estate Brokers and Investment Consultants: Often need support to validate assumptions and establish business plans to enhance the attractiveness of the assets they are marketing or dispel doubts their clients have before proceeding with the acquisition of development projects.

• Land/Building Owners: When real estate is not the main activity of owners, they often struggle to define a strategy that will maximize the value of the land or increase the asset's profitability.

• Investors: Investors with little market knowledge or practical experience in development projects need to validate investment assumptions and business plans for assets they intend to acquire or redefine strategies in response to changes in market dynamics.

• Architects: Often need to align their artistic vision with market trends to define the best use for their projects, increasing their market attractiveness and maximizing value for their clients.

I don't know if I'm right or wrong, but I firmly believe that there is this need in the market.

I am still uncertain about this need as well as the applicability of the service to each type of potential client. However, it's worth testing.

Given the described situation, in the coming days, I will share with you the general outlines of the first process of 2024 to better frame the diversity of cases. I intend to share one each month.

See you soon,

André Casaca