Investing in real estate is not only for real estate investors or those aspiring to be one, but also for a real estate developer. The real estate investment business is so wide and diverse that it offers a range of opportunities including real estate development, also known as property development.
In this blog, you will get a closer look at what a real estate developer is and how to succeed in this domain.
What Is a Real Estate Developer?
Real estate development is a process that encompasses steps and activities ranging from developing already existing commercial real estate or residential real estate buildings, renovating or releasing them to purchasing or selling lands.
So, what does a real estate developer do? The role of a real estate developer is mainly organizing and coordinating all the activities related to real estate development including converting ideas to reality, managing the construction process to a certain extent, etc. You can look at real estate developers as people playing the role of managing the recreation of real estate including lands, houses, apartments, shopping complexes, commercial real estate, residential real estate, rental properties, roads, and infrastructure. In other words, a real estate developer is responsible for managing the development of a real estate project from the scratch.
A real estate developer, just like any other professional, is not born or inherently one by nature, but rather becomes one by experience, knowledge, and practice. Does that mean anyone can become a real estate developer? Well, the answer, in a nutshell, is yes, but that is not the challenge. The real challenge is how to maintain a constant success in the real estate development field as a real estate developer. These following tips help you better understand how to succeed as a real estate developer.
Still wondering about the characteristics of a real estate developer? Read “7 Characteristics of a Successful Real Estate Developer.”
Education Education Education
We cannot stress enough on the importance of establishing a solid foundation of knowledge about real estate development and real estate investments in general for real estate developers. A degree in urban development or construction management might be helpful. However, school and degrees are not essential to succeed as a real estate developer. There are many ways to enter this domain including working for someone in the real estate business and developing your knowledge about it, for example. When it comes to knowledge about real estate development and the ways to get it, the limit is the sky.
There are countless websites and platforms offering information about real estate investments and development such as Mashvisor. Alongside Mashvisor’s blog section that contains thousands of useful blogs and tips about how to succeed in real estate investing for beginners and seasoned investors, it provides you with needed data and real estate market analysis to help you make constructive decisions related to real estate such as the best places to invest in real estate, types and strategies of investment properties that best suit you, etc. Knowledge about real estate development does not only shape your real estate education but also guarantees your constant success as a real estate developer.
For more information about real estate education, read “What’s the Real Estate Education You Need to Start an Investment Business?“
Know the Real Estate Market
A real estate developer, just like any real estate investor, should conduct professional market research and assessment in order to always be on the right side of investing and avoid losing money or making bad real estate development decisions. Always focus on your target real estate market, meaning the market you conduct your real estate development project in and use available assessment tools and metrics to evaluate your projects, estimate its profitability and feasibility. You can actually use the help of a professional real estate agent to do the search or assessment for you.
Read: A Step-By-Step Guide to Real Estate Market Analysis
Communication Skills
As real estate developers are the wheels to move the development projects by dealing with workers, contractors, engineers and real estate investors, having good communication skills is vital to facilitate the development process and create a successful real estate developer. Furthermore, interpersonal skills help real estate developers in building strong professional ties with other individuals, companies and agencies they are dealing with. Having these skills also helps a real estate developer appear as a professional and experienced developer who can be trusted in leading a certain development project.
Build a Network of Connections
The saying “you are who you spend time with” does not apply only to friends but also to real estate developers. The more you build connections and networks with professional people in the real estate development field, the more you will build your roots in this domain and the easier it will be for you to succeed and learn. Building connections and a network with people in your profession also gives you a constant motivation to continue in this domain and elevate your willingness to succeed and grow your business. Moreover, it will help you get the best advice and deal with the best specialists and experts whenever you work on developing a certain project.
Don’t Recreate the Wheel
Ultimately, real estate investing is constantly changing to meet the changing needs of people and their lifestyles. In 2018, people more than ever are willing to try living in new and innovative properties such as coliving buildings, for example. As mentioned previously, a real estate developer is responsible for transforming an idea into reality and that is where creativity comes into play. Do not be scared to think outside of the box but also make sure to be realistic and work within a specific plan. As a real estate developer, your limit is the sky but you also need to have a feasibility study that includes market analysis, the location of the property or land, demographics, the competition and risks involved.
In all cases, to know if you were born to succeed as a real estate developer, ask yourself the following questions:
- Do I have the willingness and commitment for real estate development?
- Do I have the passion to succeed in this domain?
- Am I able to take risks when needed?
- Do I know how to design a feasible plan and work accordingly?
- Do I have the knowledge required to undertake a development project?
- Do I have the time required to manage the project?
- Do I have the skills needed to deal with different people and agencies to complete a development project?
Bottom Line
There are not specific steps or plans you have to follow in order to succeed whether as a real estate developer or real estate investor. However, you have to have enough passion and willingness to learn and thoroughly understand this domain before joining it. Dare to succeed and be innovative in real estate development. Mashvisor is a platform that will always be there for you, sign up right now and master your profession.