Do you want to invest in real estate for the purpose of developing properties? You likely need a feasibility study to determine whether the development you desire is even feasible for the property you have an interest in. This is what you should know about these studies.
What Does a Feasibility Study Address?
During your study, a licensed professional engineer draws out your property. This professional reviews all the easements, zoning and building setbacks required on the land. He or she includes this information in the drawing created of the land. Then, these professionals research any natural dangers, such as flooding, and map the soil, waterline, sewer and storm requirements.
Your study may also include local market competition, legal considerations, economic challenges, outside influences, available resources and other technical requirements to complete your project. You will gain technical, operational, scheduling and legal feasibility as well. Your study may also include demographic details.
Why Is a Study Necessary?
You should have a feasibility study conducted for a few reasons. First, you need relevant data to assure you that your project offers the highest and best use of the land and that the land can support such a project. You will gain confidence that the project is feasible.
In addition, you can identify any loopholes you can use or challenges you may experience during your project so that you can prepare for them early. It encourages more in-depth planning. You will identify any supply chain issues and have the ability to create a more detailed budget. You should also have the ability to calculate a more definitive profit estimation. The additional information in the study gives you a greater return on investment and chance of success because you can plan for challenges before they occur.
As you start preparing for your investment and development, you likely want the best outcome possible. A feasibility study can help you prepare for the unexpected and help you find the best project for the best project for the land you purchase.
