Kurt Wehrle says, Real estate development, or property development, is a business process encompassing activities that range from renovations and re-renting existing buildings, the acquisition of raw land, and selling the developed land or units to others. Real estate developers bear some of the greatest risks in this process, as they are the individuals that choose to invest in real estate and develop it into something else, like a commercial building or a residential community. Real estate developers plan and oversee projects from beginning to end, from purchasing the land to constructing the property.
They will either buy land or work with landowners, develop plans for raw land or redeveloping properties, and oversee projects throughout development and construction. Developers purchase land, finance property deals, construct projects, or allow builders to construct projects, creating, envisioning, controlling, and organizing the development process from start to finish. Many developers begin in real estate development by working with individual clients, helping them purchase or sell a house. As you get more experienced in the local housing market, spend time researching trends in both the commercial and residential sides of the real estate development industry.
You do not need a formal education to be a real estate developer, but successful developers in both the residential and commercial property industries certainly draw their education from experience. However, in today's sophisticated society, property development requires an understanding of finance, legal constraints, real property taxes, commercial and market predictions, and project oversight. Not only will you have to keep up with real estate development processes, but you will also have to locate a piece of land for a reasonable price, obtain financing, obtain title to the property, and build out the property until it is finally sold. In order for you as a property developer to succeed, you are going to have to have both ambition and patience, which is necessary for the property development process.
To plan and execute your next developmental project perfectly, you will need to understand the three major phases of real estate development. Over time, you may branch out to different areas, but when you are just starting, you want to choose a single real estate field and get really good at developing it. Having expertise in different areas of the real estate market--from laying down the plaster to renting it--can definitely help you to become competent in managing a property that is being built from the ground up as an investment, particularly if you are dealing with a project that is more multifaceted, such as industrial investments or mixed-use developments. As such, you will want to secure the assistance of an attorney familiar with the laws of the province, as well as the property development scene.
Real Estate Agents -- But keep in mind their job is really only to sell you a property, they cannot even give you a solid recommendation about whether or not a property is a good fit for development -- it is up to you and your team to decide. In the role of a real estate developer, one may buy land, help finance the property deal, work with the builder to design and construct the building on a parcel, and determine how to sell the facility or land to clients. Typically, developers buy a parcel of land, determine property marketing, design the plan and construction of a building, get the required approvals and financing from public officials, construct the facility, and lease, manage, and eventually sell it. The professional team can include contractors, engineers, marketing and finance experts, etc. You can make your real estate project come true with the help of an experienced property development team.
Building a solid network of these professionals will make the developer's job a lot easier because it allows them to solicit recommendations and recruit colleagues who they can trust.