In less than one page, what is the major take-away from the "Essential" paper on Development Cash Flows. Do not get caught up in the math. What is the practical evidence/application? This is a...

1. Basic outline/purpose of article Purpose of the article is to summaries about the major takeaway of the Development project. Understanding the development cycle, uncertainty about the demand of the project, criteria to reduce the disbursement uncertainty.
2. Findings: Lenders and equity participants seeking to reduce the risk of disbursement and volatility need to consider both the aspects of the expense of the project and the interaction between the construction agency and the services of the supplier project.
3. Limit:
· Calculating all the cost could be time consuming
· Most Development cycle or approaches are built around the needs of the business partner or the client. However, it is difficult for business associates to relay the degree of detail needed for structures to be implemented in compliance with their standards.
· Size complexity
· Calculation error: The large-scale project could make an unforced mistake in the measurement. Sometime management can miscalculate or refuse the main area (not intentionally)
· Theoretical look Straightforward but there are so many problems that can be dealt with in actual situations.
4. Application: In order to enhance and reduce excessive cost factors, we can follow the changes listed below:
Divide the funds into various categories that classify the disbursement under a construction loan agreement which are the following:
· Land cost and Land improvements
· Improvement cost: Actual improvement, parking space, Landscaping, Signage, Cost of tenant improvements
· Controlling brokerage fees
· Analysis of Soft cost
· Financial cost
· Miscellaneous soft development cost: Those cost which are not related to development cost framework.
· Interpretation and evaluating...