During which phase of real estate development is financing typically secured?

Securing financing is a crucial step in the real estate development process, and it typically occurs during the pre-development phase. This phase is characterized by extensive planning, including feasibility studies and obtaining the necessary permits and approvals, factors that are essential in determining the project's viability. During this stage, developers seek to build their financial foundation by acquiring funding through various sources such as loans, investors, or grants. Successfully securing financing in the pre-development phase provides the necessary resources to move forward with the project into the development phase, where construction and actual realization of the project take place.

While the development phase involves using the secured financing to carry out the construction and implementation of the project, it is in the pre-development phase that the groundwork for financing is thoroughly laid out. Thus, it is during the pre-development phase that developers ensure they have the necessary financial backing to support their plans.