Development terms in context

Opportunity and delivery

• Developer: the party coordinating the development business plan; not automatically the architect, builder or lender.
• Site control: a specific ownership or contractual right, not merely knowing the owner or viewing a listing.
• Feasibility: investigation of whether a proposed concept is supportable across market, site, cost, delivery and funding questions.
• Entitlements: land-use permissions and related conditions; identify the particular approval rather than assuming every permit exists.
• Contingency: a budget allowance for defined uncertainty, not a substitute for pricing known omitted work.

Income, value and financing

• NOI: net operating income, after operating expenses but before debt service and, under this course convention, reserve funding.
• Cash flow: cash remaining after the items specified in the calculation; always check whether reserves, debt, taxes and capital needs are included.
• Capitalization rate: the rate relating a defined stabilized NOI to indicated value; an assumption is not an appraisal.
• Debt service: required principal and interest payments under the relevant financing terms.
• DSCR: debt-service coverage ratio; name the income numerator because NOI and reserve-adjusted definitions differ.
• Mortgage constant: annual debt service divided by loan principal, not simply the note interest rate.

Capital and decisions

In fictional Blueprint Court, positive NOI does not mean every dollar is distributable. Return to the underlying calculation whenever a term conceals an obligation or an assumption.

• Sources and uses: reconciliation of where project funds come from and where they will be spent, with timing still requiring separate review.
• Waterfall: the contractual order and method for allocating available cash; preferences and fees depend on actual terms.
• Decision brief: a preliminary explanation of the opportunity, evidence, economics, risks and next action.