Why Real Estate Developers do not Engage Third Party Feasibility Study Companies Wert-Berater, Inc.

July 12, 2010 - PRLog -- Why Real Estate Developers do not Engage Third Party Feasibility Study Companies?

Real estate developers wear several hats.  They are sales people raising money, sales people working with contractors, sales people selling their end product.  Essentially the Real Estate Developer is a sales person.

A highly skilled and experienced real estate developer understands their project.  However, we have never spoken to a real estate developer who indicated that their project was risky and might not be financially feasible.

What are the risks associated with real estate development?  Every aspect is risky from site selection to borrowing.  In terms of site selection, a good location is just the start.  The site may be well priced, but there may be a hitch.  There may even be power lines that run through the site, but what is the capacity and can it be hooked up to power the planned project?

Sewer and water might be stubbed, but what is the capacity?  Topography may be level, but what about the soil conditions?  Zoning may provide for the intended use, but what about entitlements?

Has a proper environmental assessment been completed?

The plan might call for rents that are at market levels, expenses at market levels and cost of construction at market levels - but what if the market levels change in the time that the project is planned to it is actually constructed?

What about construction defects, or a tenant who backs out?

So many risks.  And what is the profit margin for most real estate developments?  Is it enough to mitigate risks?

The third party Feasibility Study will answer all of these questions and more.  Real estate developers even make attempts to fool third party providers into believing in their project.

The third party provider of the feasibility study must be unrelated to the project and the developer and any of its investors.  The firm must maintain complete unbiased approach.

Wert-Berater, Inc. has a team of 372 professionals in disciplines from environmental, civil engineering, financial analysts, appraisers and economists.

The feasibility study requires a team of experts.  Not a single individual with experience in real estate development.

The feasibility study must present all risks associated with the planned project.

When a developer asked "What if I pay for a study and it's does not show me a positive result?" our answer is "Do not proceed as planned."


Before investing in any real estate development anywhere, require that the developer present a feasibility study from Wert-Berater, Inc.

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Wert-Berater, Inc. is a full service provider of environmental consulting, civil engineering and economic studies. The company may be reached by calling 888.661.4449 or http://www.wert-berater.com