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0:00
Welcome again to
Real Estate Finance.
This is the last talk of
the 10-part series on
this subject and the
third and last talk
on Real Estate Finance.
I'm John McDonald,
Emeritus Professor of
Economics, University of
Illinois, Chicago and
Emeritus Professor of
Real Estate from
Roosevelt University.
The talk this time is about
real estate development
and finance.
This last presentation provides
an outline of the
typical process involved
in getting a real estate
development up and
going and the financing that
is used for that purpose.
0:46
The actors in the real
estate development drama,
there are several.
There's the local
elected officials
who will play a role,
the citizens, including
nearby neighbors,
real estate developers,
and the planners that are
employed by the
local government.
1:08
The local public
officials include
the mayor who has an agenda and
then city council members with
their own districts
that may have
their own specific
goals in mind.
As I say here, one
may represent a slum,
another a high-income area,
and so those people would have
very different goals in mind
for their own districts.
1:34
Then there are citizens,
of course, including
the nearby neighbors.
Citizens vote for mayor
and their council members
and so they have their
own interests in mind as
well and that nearby neighbors
especially to the site of the
proposed development, often
worry about something
"new" coming in and may
have a parochial interest
in keeping the
neighborhood as it is.
In other words, "not
in my back yard".
