2 Establish a budget and cash flow projection

One of the most important aspects of your land development financing is your budget and cash flow projection. This is a document that shows your estimated income and expenses for your project, as well as your sources and uses of funds. It helps you to plan your financing needs, track your spending, and manage your liquidity. Your budget and cash flow projection should be based on realistic assumptions and updated regularly to reflect any changes in your project scope, market conditions, or financing terms. You should also include a contingency reserve to cover any unforeseen costs or delays.

3 Use a dashboard and reporting system

A dashboard and reporting system is a tool that allows you to monitor and evaluate your land development financing in a visual and interactive way. It can display key financial and operational metrics, such as your return on investment, debt service coverage ratio, net operating income, occupancy rate, and sales volume. It can also show your progress against your goals and indicators, as well as any variances or issues that need your attention. A dashboard and reporting system can help you to identify trends, patterns, and opportunities, as well as to make informed decisions and adjustments.

4 Conduct regular reviews and audits

Another way to monitor and evaluate your land development financing is to conduct regular reviews and audits of your project. This involves checking and verifying the accuracy and completeness of your financial and operational data, as well as the compliance and performance of your contractors, suppliers, and lenders. You should also compare your actual results with your budget and cash flow projection, and analyze any deviations or discrepancies. Conducting regular reviews and audits can help you to detect and resolve any problems, risks, or inefficiencies, as well as to improve your quality and accountability.

5 Seek feedback and advice

Finally, you should seek feedback and advice from your stakeholders and experts to monitor and evaluate your land development financing. Your stakeholders include your investors, lenders, partners, customers, and regulators. They can provide you with valuable insights, opinions, and suggestions on how to improve your financing strategy, execution, and outcomes. You should also consult with experts, such as financial advisors, consultants, appraisers, and lawyers, who can offer you professional guidance, support, and solutions. Seeking feedback and advice can help you to learn from others, leverage best practices, and enhance your credibility.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?