The 7-Step Feasibility Process That Saves Developers from Million-Dollar Mistakes

Most developers skip the $25K feasibility study…
And lose $1M+ on projects that never should’ve started.

I’ve seen it too many times.

→ Developer gets excited about a property.
→ Jumps straight into design.
→ Starts pulling permits.

6 months later…
“Wait… this doesn’t pencil anymore.”

$500K in soft costs. Gone.

Here’s how we prevent that.

Our 7-step feasibility process kills bad deals before they kill you:

Step 1: Back-of-the-Napkin Reality Check

→ Land value vs. buildable square footage
→ Construction costs at $300/sq ft minimum
→ Does it hit 20% profit minimum?

If not — stop right here.

Step 2: Site Analysis Deep Dive

→ Zoning that actually matters
→ Utility connection costs (rural = $$$$)
→ Environmental issues Google Maps won’t show you

Step 3: Market Research (Not Wishful Thinking)

→ Real sales comps from the last 6 months
→ Local rental rates + vacancy
→ Talk to brokers, not Zillow

Step 4: Financial Modeling That Holds Up

→ 10% contingency early, 3-5% later
→ Soft costs: architecture, engineering, permits, marketing
→ Financing: 70-75% loan-to-cost, interest reserves baked in

Step 5: Expert Validation

→ Contractors check your cost assumptions
→ Sales teams confirm pricing is real
→ Third-party market analyst for commercial deals

Step 6: Risk Mitigation Planning

→ What if construction jumps 15%?
→ What if lease-up takes 6 months longer?
→ What environmental surprises could kill the deal?

Step 7: Go / No-Go Decision

→ Summarize everything in a real feasibility report
→ Check against: profitability, risk tolerance, market alignment
→ Make the call — based on data, not emotions

Most projects die in Step 1 — if you’re honest.

That $25K feasibility study?
It saves you from a $1M mistake.

Bonus:

→ Investors love this.
→ Banks love this.
→ Partners love this.

Show up with real due diligence…
You’re not “another developer with a pro forma.”
You’re the developer who does the homework.

Feasibility isn’t optional.
It’s the difference between a dead project…
And one that prints money.

Best part? If you won’t want to pay me to do it for you, I’ll teach you how to do it for free!