subject: 7 Great tips for how to become a property developer [print this page] 7 Great tips for how to become a property developer
Of all of the people who become property investors or real estate investors, only a handful will go on to become a property developer. Property development, however, can be fun and highly profitable venture. So what is it that stops people from taking that step over into property development? Many times it is simply a fear of the unknown.
Here are some tips for how to become a property developer and some of the things you will need to do to successful develop property projects.
The first tip is that anyone can do it. You don't need to be someone special, you don't need to have real estate qualifications, you just need to be someone who is willing and eager to learn and to work through the issues and solve them as they arise. The role of the property developer is that of a project manager. Hire professionals when you need expert advice and be a good communication and a good organizer and and you will go far!
The second tip is to do your research. You must know your area and the product that the real estate market wants in that location.
The third tip is to do your numbers. Know how much your target market will pay for that product in today's market (do not factor in capital growth). Find out how much the project will cost, making sure your feasibility study include all expected costs. If this is your first project it is well worth hiring someone to help you with this part as getting the numbers wrong can be a fatal error in terms of your profitability.
The fourth tip is to assemble a good team. Hire experts when you need them and don't be afraid to pay for them. Use word of mouth referrals where possible and keep hold of the details of anyone you find is a good team member so that you can work with them again.
The fifth tip is to decide upon your strategy. Work out what you are developing, is it a subdivision and adding a townhouse, is it a block of units, is there an existing home renovation involved. Some people like to start small, with a simple renovation, subdivison and unit development whilst other with jump in at the deep end with a 20 townhouse development. Either way, know your strategy.
The sixth tip is to employ a can-do attitute. There will be issues, there will be problems and it won't all run to plan when it comes to developing property and building real estate projects. The sooner you accept this and meet it with a problem solving mentality, the better things will go and the more enjoyable the experience will be.
The seventh and final tip is to just get in there and do it. The only way to make it happen is to take action!
