They usually get the first deal by leaning on broker relationships, doing direct owner outreach, and keeping site criteria tight so they can move fast. A strong feasibility package with comps, the approvals path, construction budget, exit plan, and contingencies helps win trust, and for cost context see What Is The Estimated Cost To Open Your Property Development Business? Most first deals start with a letter of intent, a purchase option, or a due diligence period before buying land outright; in one model, the first owned Urban Loft closes in Month 3 for $12 million, while the first modeled sale does not hit until Month 29.
First-deal moves
Call brokers with narrow site rules
Reach owners directly
Use a letter of intent
Ask for a due diligence period
What closes the deal
Show comps and approvals path
Lock the construction budget
Map the exit plan and contingencies
Use pre-sale deposits or lease commitments
Do you need a license to start a property development business?
No, Property Development usually does not need one single “developer license,” but you do need entity setup, tax registration, insurance, local business registration, and project-specific approvals. License rules vary by state, city, activity, and deal structure, so pair your launch checklist with What Is The Current Growth Rate Of Property Development Business? and budget $8,000 in Month 1 to Month 2 for licensing and setup capex.
What you need
Form legal entity
Get federal tax setup
Register locally
Buy project insurance
Where licenses apply
Use licensed brokers for brokerage
Hire licensed architects and engineers
Use licensed contractors and surveyors
File securities documents if raising capital
How long does it take to start a property development business?
A Property Development business usually isn’t “started” on one date; company setup and the first project run on different clocks. Plan 60 to 120 days to set up the firm and pipeline, with the first modeled acquisition in Month 3, first construction start in Month 6, first modeled sale in Month 29, breakeven at Month 29, and payback at Month 57. The timeline moves because site acquisition, due diligence, entitlements, financing, design changes, utility access, permits, and contractor scheduling can all push dates, so there’s no one universal schedule.
Startup timing
60 to 120 days for setup
First acquisition in Month 3
First construction starts in Month 6
Construction lasts 10 to 20 months
Project risk points
Site acquisition can slip
Due diligence can slow closing
Permits and entitlements add time
Financing and contractor scheduling can delay starts
Confirm what must be ready before operating as a property development business
Launch readiness checklist
Use this go-live approval checklist before opening the business and starting the first project.
1Entity setup
Entity and tax setup completeCritical
You need the legal shell in place before contracts, permits, and funding move.
Bank accounts and bookkeeping liveCritical
Clean books are needed to track project costs, draws, and investor money.
Insurance bound for project riskCritical
Coverage should be active before site work, ownership, or tenant exposure begins.
2Market thesis
Market niche and site criteria setHigh
A clear niche keeps the team from chasing bad land or the wrong asset type.
Target asset site control securedCritical
No site control means no real project, so this is a hard launch gate.
Exit demand and comps reviewedCritical
You need proof that buyers or tenants exist before you commit capital.
3Site diligence
Zoning and use confirmedCritical
The project can fail fast if the planned use does not fit the parcel rules.
Utilities and access verifiedHigh
Water, power, roads, and ingress must support the build and the final use.
Environmental and survey clearCritical
Hidden land issues can crush value, delay permits, or force costly redesigns.
4Capital runway
Financing sources committed in writingCritical
The model needs real capital, not verbal support, to cover land and build costs.
Pro forma clears Month 29 breakevenCritical
The plan should show the business can reach modeled breakeven by Month 29.
Cash floor survives Month 42 stressCritical
The minimum cash month is Month 42, so funding must survive the dip.
5Delivery team
Broker and attorney engagedHigh
These two roles keep deal flow, contracts, and closing steps from stalling.
CPA and lender materials readyHigh
Clean lender and investor materials shorten funding talks and speed approvals.
Architect and contractor scopedHigh
You need build scope, pricing, and timing before you lock the project.
Surveyor and environmental bookedHigh
Early diligence avoids surprises that can kill the deal after acquisition.
6Exit signoff
Sales and leasing plan readyHigh
The first revenue step needs a clear path to sell or lease the asset.
Pricing and rent assumptions checkedHigh
Your pricing must fit the local comps or the exit will slip.
Launch approval signed offCritical
Final signoff should confirm site control, approvals, funding, and exit demand.
Want the six property development launch drivers?
1Market Niche
60-120d
A tight acquisition box speeds sourcing and cuts bad deals across property types.
2Deal Pipeline
Month 3
Qualified sites under review keep acquisitions moving and prevent single-deal delays.
3Zoning Permits
Month 6
A mapped entitlement path protects construction start and reduces permit slippage.
4Capital Stack
-$14.3M
Committed funding before closing keeps land buys and draws from breaking cash by Month 42.
5Team Network
Month 13
Vetted vendors and staff avoid permit, pricing, and capacity gaps.
6Exit Strategy
Month 29
Demand proof before spend improves first-sale timing and lease-up odds.
Market Niche And Site Criteria
Pick One Property Lane
Market niche and site criteria drive speed. If you define the property type, geography, buyer or tenant profile, price point, zoning context, and return target before sourcing, you make faster calls and avoid weak deals. A written acquisition box with deal size, zoning fit, expected exit, and construction complexity is the readiness check. One clear lane beats six half-fit options when you need to open on time.
The risk is simple: if the founder chases Urban Loft, Suburban Home, Retail Pad, Office Block, Flex Warehouse, and Condo Tower at once, underwriting slows and local approval risk rises. This lane depends on reliable comps and local approval knowledge. Without those, the team can miss zoning limits, overpay, or tie up time on sites that cannot move to closing and day-one work.
Lock The Box Before You Source
Write the filter first and use it on every lead. Keep the decision set to one property type, one target area, one buyer or tenant profile, one return target, and one zoning path. That cuts review time and helps the team reject bad fits fast, instead of re-underwriting the same deal three times.
Before opening, verify these inputs: local comps, zoning fit, likely approval path, exit demand, and build complexity. If any of those are weak, pause sourcing. The goal is not more leads; it is fewer, better sites that can move through diligence without surprise delays.
Choose one lane before outreach.
Document the acquisition box in writing.
Check zoning and comps first.
Reject mixed-fit sites early.
Track approval risk by site type.
1
Site Control And Deal Pipeline
Site Control Comes First
Site control is the operating engine here. If the firm cannot line up broker outreach, owner lists, letters of intent, purchase options, and a clean due diligence period, it cannot close on time or keep the project pipeline moving. The modeled acquisition pace starts in Month 3, then Month 4, Month 7, Month 10, Month 15, and Month 21.
The readiness signal is multiple qualified sites under review, not one favorite parcel. That matters because a single deal can slip on zoning, title, financing, or exit demand, and that delay can push out closing, start dates, and early revenue. Fast underwriting and clear acquisition criteria keep the launch schedule realistic.
Build a Live Deal Funnel
Before opening, the founder should define acquisition criteria, assign underwriting to a fast turnaround, and keep a written list of target sites by zoning fit, price, and exit path. Use LOIs and purchase options to control land before full cash is tied up.
Track at least three qualified sites
Use short due diligence windows
Document zoning and exit checks
Avoid buying land too early
What this hides is cash risk: owned land before zoning, financing, and exit demand are proven can trap capital and slow the whole launch. If underwriting takes too long, the team loses timing on brokers, lenders, and consultants, and the first closing can slip past the plan.
2
Zoning, Entitlements, And Permits
Zoning, Entitlements, And Permits
Approval readiness sets the real launch pace. Before a project can open on time, Ascend has to confirm zoning fit, any variances, planning board review, environmental checks, utility access, site access, and the building permit path. For the first asset, construction starts Month 6 only after acquisition and feasibility work are done, so permit timing directly drives when the project can move from paper to ground.
In practice, one “permitted use” does not mean the site is buildable, financeable, and sellable. The real risk is a local approval delay or a missed agency step pushing the schedule past Month 6, which slows cash use, contractor start dates, and first-day readiness for the asset.
Document the entitlement path early
Build a written entitlement pathway that names the responsible professionals, likely decision points, and approval timing for each site. Keep the sequence tight: zoning check, survey, environmental review, utility confirmation, access review, then permit filing. That makes the launch plan realistic and shows where the schedule can slip.
Confirm local rules before site control.
Map every approval and filing date.
Assign one owner per permit step.
Test utility and site access early.
Track agency timing, not just design work.
What this hides: even a good site can stall if the planning board, environmental reviewer, or permit office moves slower than expected, so the first asset needs slack in the schedule and cash plan.
3
Capital Stack Readiness
Capital Stack Readiness
Financing sets the launch pace because land closes, soft costs, and hard costs all need cash on the right dates. Across six projects, modeled acquisition costs total $168 million and construction budgets total $204 million, so the sponsor needs committed or highly credible money before land closing. If the capital stack is weak, the firm cannot start on time or keep contractors funded.
The risk is draw timing. When loan advances, equity calls, and seller payments do not match acquisition and construction obligations, the project can stall even if the site and permits are ready. Modeled cash reaches -$14285 million in Month 42, so the plan has to show exact funding dates, reserves, and investor updates, not just a target raise.
Fund the Draw Schedule, Not Just the Deal
Build the feasibility package with sponsor credibility, equity sources, debt options, contingencies, draw schedules, and update timing. Match each dollar to a use: land, fees, construction, and carry. With modeled first-year EBITDA at -$10252 million and second-year EBITDA at -$1484 million, early cash burn is real, so closing should wait until the funding path is committed.
Verify equity before signing land.
Test lender draws against milestones.
Keep reserves for delays.
Send monthly investor updates.
4
Professional Team And Contractor Network
Flexible Project Team
This launch driver matters because property development can’t open on time if the right people are missing at the wrong step. You need an attorney, CPA, broker, architect, civil engineer, lender, general contractor, surveyor, environmental consultant, and a property manager or sales broker lined up before permits, financing, or closing commitments.
The internal team starts lean but still costs real money: $180,000 for the CEO or lead developer, $120,000 for the project or asset manager, and $100,000 for the construction supervisor. That is $400,000 in base payroll before Month 13 adds financial analyst and administrative support, so weak vendor planning can break the launch schedule fast.
Vet Vendors Before You Commit
Build the network first, then sign the deal. The readiness signal is simple: each vendor has pricing, capacity, insurance, and references confirmed in writing, plus a clear role in the permit, financing, and buildout path.
Here’s the quick check: line up backup options for the general contractor, architect, civil engineer, and surveyor before you lock a site. If contractor gaps show up after permits or lender approval, the project can stall with carrying costs, missed deadlines, and no day-one operating capacity.
Confirm scope, fee, and response time.
Verify insurance and license status.
Document references and recent project work.
Match vendor timing to permit milestones.
Assign one owner to each workstream.
5
Exit Strategy And First Revenue Readiness
Exit Plan and First Revenue
First revenue only works if the exit is real before you spend hard on the build. In this model, that means matching the deal to the right path: build-to-sell, build-to-rent, renovate-to-sell, or hold-for-rent. The launch risk is simple: if you finish the asset without buyers, tenants, or operating capacity, you can delay cash-in and stretch carry costs past the plan.
Here’s the timing risk: the first modeled sale is Month 29, with later sales in Month 34, Month 43, Month 57, and Month 60. Variable fees can be heavy too, with brokerage and sales commissions at 30% to 45% and property management or leasing fees up to 45%. That makes demand proof before construction spend the key readiness signal.
Prove Demand Before You Build
Start with buyer comps, tenant letters of intent, broker strategy, lease-up plan, and rental operations setup. Those inputs tell you whether the project can sell, lease, and run on day one. If the team cannot show real demand before the biggest cash outlays, the launch plan is too early and the opening date is too risky.
Verify buyer comps and exit price range.
Secure tenant LOIs before major spend.
Map broker timing and sales costs.
Build lease-up and property management capacity.
One clean rule: no demand proof, no heavy construction spend. That protects working capital, lowers the odds of a finished asset sitting idle, and keeps first revenue tied to a real market path instead of a hope.
