Real Estate Development
Real estate development can seem intimidating at the start and becoming an expert in this field is not the easiest path to take in life. However, there are strategies and tips to help you and with the correct guidance and information it is possible to establish a trusted name in the industry. We have put our heads together to create a list of the essential tips that every successful real estate developer lives by.
Studying Real Estate Development
Most developers will agree that you must educate yourself before jumping into a project. In fact, experts say that studying projects is what created their continuous success. If you know every detail about your niche, then you have considered advantages and risks as well as the time commitment and the skill set you need.
If you have been in the real estate development business for a steady amount of time, then you may have become complacent. Stop now! The market trends are constantly changing and evolving so you need to be well informed on how our world is transforming. Did you know that some developers are focusing on building parking garages that can be converted into office space as autonomous driving may well be our future? Being educated does not just mean knowing the trends, it also means being able to constantly forecast the market in order to become a more effective real estate developer.
There are plenty of books, podcasts and YouTube channels to delve into in order to educate yourself more or to find new contacts through. Which leads us to the second expert tip.
Relationships and Seeking the Right Experts
Real estate development success starts from building the right relationships, and actually, it is vital whether you are a beginner or an experienced developer. Have you ever heard the phrase “It’s not what you know but who you know”? Well in a developer’s world this can be very true, knowing the right people will help with making deals and getting reasonable prices for various things. If you work on a strong contact list and find a suitable partner for guidance, it will make building relationships simpler in the future and make it less difficult for projects to get approved as you will have backing from more experienced developers.
In a recent Forbes article, Sohin Shah said “When I was a first timer, relationships were built on the ground. Today, there can be built online.” How true this is! Expanding your network is really simple thanks to social media sites such as LinkedIn and various blogs have ‘subscribe’ features so you can read about every real estate development subject that is out there. Most experienced investors are more than happy to show off their achievements and explain their mistakes in seminars and it’s a great way to meet potential partners and peers so Google upcoming events in your area.
After building these relationships with various real estate development experts then you can explore the various strategies out there. Every developer has a different strategy that works for them and not or others and with their guidance you can create a successful one for yourself.
Top Tip: When you go to a seminar or conference set a goal of how many connection you want to make and don’t leave until you have achieved this.
Know the best location
Most real estate developers are drawn to land and developments in their residing area however that is not always the smartest choice. Areas near sizeable universities, hospitals and towns that are populated with a large percentage of families are a good place to start. Furthermore, research what areas are up and coming neighborhoods as there is always potential to find a great deal. Fifteen years ago successful real estate developers would look for large shopping centers but with a changing market, now developers look for areas with dining and entertainment nearby.
As previously mentioned, studying is what makes you a real estate development expert so don’t forget to study your potential areas. Research the crime rates in the area because this is what future tenants will also do.
As our world is changing there are new regulations and land rights that will influence development. Be sure to check on ecological impact and zoning uses as well as remembering local and global challenges that may become a trend.
Build a Team
Real estate development involves a lot of professional teamwork that consists of architects, engineers, lawyers and construction trades, just to name a few. With each member being an integral part of the real estate process, it is crucial that you trust your team and work to achieve goals together. Developers who are successful in their industry will ensure communication between themselves and their team members in nothing but perfect and information is shared efficiently.
Set A Goal You Want to Achieve from Real Estate Development
Before diving into any project, you need to have a clear goal and strategy. Sit down and create a plan that includes where you are now verses where you want to be in terms of financial gain and reputation for yourself. As you grow within the real estate development industry your plans and goals may change but experts all agree that goals are essential and should be a written as a regular task.
It is evident that all real estate developers are ambitious, but you must remember to set goals that are attainable. By creating unachievable goals, you are setting yourself up for failure and this will damage your reputation before you have even started.
Planning your goal and strategy may feel time consuming but it is absolutely necessary in being a successful real estate developer.
Consider the following subjects for your plan:
- Your Market
- Your Niche
- Availability (Time commitment)
- Average Potential Profit
Top Tip: If you are struggling with starting a plan use the “SMART” goal technique. Specific, measurable, attainable, relevant and time bound.
The list of strategies, tips and ideas for becoming a real estate development expert goes on however, the subjects listed above are the most powerful and necessary. Aim to stand out in the world of development by accepting the guidance of other experts as well as consistently studying the market and world around you. Having the right mind set and team around you is crucial in order to become successful in this industry.