Land Development Model
This is a simple, powerful, and inexpensive land development model. It is the result of an effort to create an appraisal and valuation tool that: 1). Estimates 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 the absorption rate, project duration, lender loan requirements, length of the initial construction period, seller financing, interest rate fluctuations during the project period, phasing decisions, land purchase option alternatives, and residual land; 3). Allows for quick and easy 'what-if' analysis on all land development components - above and below the gross profit level.