When doing a development, much of the advice found elsewhere in this book regarding contractors, materials, and costs applies, only on a larger scale. The most significant difference is that time is money when you’re doing a development. You probably have a construction loan that you’ll need to pay back, contingent on income from sales at your development.

The first thing to remember is that these projects almost always take longer than you think they will. When figuring your costs, take your most pessimistic estimate and add six months. Make sure you have a reasonable cash cushion in case of significant delays or fluctuation in materials costs. Also, consider breaking your development into smaller parts and doing them in sequence. The permitting will go faster, your upfront costs will be lower, and you can take out separate construction loans at each stage, allowing you to pull the plug or pause things at different points in the project.

Finally, you might want to consider something that developers have come to depend on in Costa Rica: Pre-construction sales. These might not work so well in today’s market, and you shouldn’t do them to raise cash (the deposits should go into escrow). However, significant pre-construction sales will keep your creditors and investors happy, making it easier to move ahead with subsequent stages in your project.