Integral risk assessment for real estate projects

As a real estate developer, your success depends on making informed decisions and managing risk effectively. To assist you in this task, we have developed a risk assessment questionnaire that has proved reliable in assessing financial, operational and commercial risks for more than 450 real estate projects.

By taking 15 minutes of your time to fill out this questionnaire, you will be investing in the profitability and longevity of your projects.

This questionnaire is a valuable tool to identify the potential risks of a project that investors and institutions are willing to finance. By delving deeper into these critical aspects, you will be better prepared to make informed strategic decisions and safeguard your investments.

What are your first and last names?

Your email address

Your phone number (with international code)

How did you hear about the ARES risk analysis?

Your tax category

Main region where your developments are located

Main focus sector of the company in past developments

Do you currently have developments under construction?

How have you mostly financed your developments in the past?

Have you been directly involved in all areas of development?

Is your company's main line of business real estate development?

Is there a Project Manager in your team?

Is there an architect or civil engineer in your team?

Have you or your team received formal education in real estate finance?

Do you or your team have experience in sales and marketing?

Have you or your team received formal real estate legal education?

Does your company constantly train its personnel on legal, financial, technical and commercial issues?

Have you already audited a real estate project with an external auditor?

Is your company a family business?

How many years have you been developing projects with your current team?

Are the most important decisions made by people with experience in real estate development?

Does your company subcontract construction?

Does your company outsource marketing to a specialized agency?

Does your company outsource legal services?

Does your company outsource tax services?

What is the name of the project?

Where is the project located?

What stage is the project at?

What type of project is it?

What is the total area of the land in m2?

How many units are you building?

What is the average area per unit in m2?

How many m2 are considered for common areas?

What is the duration of the project?

Is your company the majority investor in the project?

Do you have an incorporated company for this project?

Is there a business plan specifying market segmentation, value proposition, marketing strategy and capital structure that has been shared with the team?

Is there a SWOT analysis for the project?

Do you have a hydrological study of the land?

Do you have an environmental study of the land?

Does the project have a master plan or an architectural project?

Is the architectural design of the project already defined and completed?

Is the area where the project is to be developed a protected or archaeological area?

Does the land already have water, sewage and electricity services connected?

Is there a direct access to the site that is already paved and has traffic?

Does the project operate under a financial trust?

Have basic services (water and electricity) been authorized by the authorities?

Is the project designed based on what the municipal authorities allow in the area?

Is there any risk of the project being cancelled due to permit irregularities?

Is there currently any new legislation in the city that may affect the implementation of the project?

Does the property have any outstanding encumbrance or legal issues?

Is the land already paid for in full?

What is the cost per m2 of land in USD?

What is the cost per m2 of common areas and parking construction you are considering in USD?

What is the cost per m2 of amenity construction you are considering in USD?

What is the cost per m2 of commercial area construction you are considering in USD?

What is your total Soft-Cost in USD?

Has the land been contributed by the landowners?

Does the project have a financial plan that has been reviewed and approved by investors?

Does the project have initial seed capital from partners in excess of 10% of the Total Project Cost (TPC)?

Is the cost of land more than 20% of the Total Project Cost (TPC)?

Is the construction cost more than 60% of the Total Project Cost (TPC)?

Is the Soft Cost of the project greater than 20% of the Total Project Cost (TPC)?

Does the % of bank loans exceed 60% of the total project cost?

Do investors expect more than 20% return on this project?

Have banks denied bank loans for the project?

Does the project have a defined (non-parametric) budget?

What is the % of investment made so far out of the total project budget?

Have you conducted a competitive analysis study in the area?

Do you have a market study carried out by a specialized company?

Has the project been designed based on the specific needs of a niche market?

Is there a defined marketing strategy and a structured marketing plan?

Do you have a branding strategy?

Are you currently working on marketing campaigns?

Do you already have pre-sold units?

Do you have an internal sales force?

Is the monthly absorption rate of the area greater than 2 units per month?

Have market prices decreased in the last year?

Are there similar projects in the vicinity of your project?

Have you signed an exclusive sales contract with a broker?

Can your company generate and manage sales leads directly?

Do you plan to pre-sell at least 30% of the units before construction begins?

If the project is in retail, do you already have signed contracts with customers?

Do you have a defined and proven process for handling after-sales warranties?

Do you have a specialized after-sales warranty team that is experienced in dealing with customer and supplier situations?

Do you have a defined process for reporting and measuring customer satisfaction?

Do you have controls for safety, quality and continuous improvement of construction processes?

Do you have in-house training for total quality control including after sales support?