The links below provide a gateway to the website and an easy way to get a feel for how the model works. Simply use your browser's back button to return to your previous spot.
Website Quick Trip
Input of variable land development components are easily entered to the model's input page. Field-clearing and auto-entry macros enhance data input efficiency.
Data entry is very easy. A couple times through it and you will have it, we promise! The tutorial demonstrates the data input process and output capacity of the model.
It is important that users have absolute confidence that unnecessary entries are not made to the model and that required input are accurately entered. A prompt column and model consistency section are incorporated to the LDM input page to ensure entry errors or ommissions are not made.
Output Tables and Schedules
Model output include profit and cash flow tables, a profit by phase table, a project summary table, a lot sale schedule, among others. All output tables and schedules can be printed.
It is very easy to conduct 'what-if' analysis on any land development component. Simply modify any of the components and the impact on profitability is calculated by the model.
You do not have to be an expert in the field to use the model. In fact, the model can be helpful to the novice in gaining an understanding of the land development process.
Land Development Components
We have incorporated fifteen land development components to the model. The components are interrelated and as such modification of any one of them affects profitability to some degree.
The land development process is made up of three distinct and progressive stages. The first is the 'negotiation, planning, and permitting' stage, the second is the 'construction and holding' stage, and the third is the 'absorption or selling' stage.
The land development model can handle subdivisions with one, two, and three phases. It is designed in such a way that real estate options and residual land are part of the analysis. As such, the model may be useful in terms of estimating the value of land options.
Owner Tax Calculation
One of the model assumptions is that the developer's ownership is in the form of a pass-through entity (i.e., S-Corp, LLC). As such the entity is not taxed, but project income flows through to the owner personally and is taxed at his or her tax rate.
The model requires Microsoft Excel to run.
To enable the macros, go to Tools menu > Macro submenu > Security tab and set security level to medium. When you open the LDM you will be notified that the file contains macros and asked to enable or disable the same. Click on 'Enable Macros'.
Mathematical models inherently operate under a set of parameters, and thus a set of assumptions.
Uncertainty of the variable input. Estimates are prone to some error. Additionally, the structure of the model requires 'cash flow timing' designed to reflect timeline concepts ....
GIS and Appraisal
Integration of a GIS and the appraisal office allows for visualization of parcel attributes and neighborhood features.
Navigation made easy. The map provides access to all website pages. Click away!
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Why Purchase the LDM?
Because its a simple but powerful, straightforward, fast-working yet inexpensive land development model. Give the product a try. It is a great appraisal and valuation tool - and it is so simple to use.