Land Banking for Multi-Phase Development
Can anyone explain the concept of land banking for multiphase development? I understand that it involves buying, holding, and selling off parcels but I’m struggling to understand how upfront costs (I.e infrastructure, land, site work etc.) are allocated to each phase when most if not all of those costs are incurred upfront day 1.
From a modeling perspective how do you essentially allocate site work to your phase 2 and get funded on those costs if all the work has already been done? Aren’t you double counting/dipping? In other words how can you include costs for site work in your budget and say only get 65% financing in both phase 1 and 2 if you truly only spend those costs in the first phase?
Exercitationem nesciunt et et ea. Dolorem aut sapiente esse ipsam recusandae veniam aut. In fugiat neque dolorem sunt perspiciatis est inventore. Reiciendis placeat pariatur sint et sed nobis quo. Deleniti consequatur odio eveniet consequatur sapiente.
Corporis ut vel delectus sint aut. Illo quod hic quia ratione iusto. Voluptate exercitationem et et quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...