3 Things Every Real Estate Developer Should Keep In Mind When Running Their Business
by Mashum Mollah Real Estate 01 November 2017
If you are planning to venture into real estate development, then you should know that achieving success in the industry can be a tough thing to do. Invest in a wrong property or get into trouble with the financiers, and you can end up not just losing your business, but your private assets as well.
However, if you are willing to learn the tricks of the trade and are committed to being successful, then being a real estate developer can be the best decision you have ever taken in your life, giving you immense wealth and fame. And to help you on this venture, we list out three things you should keep in mind when running your real estate development business.
Network And Create Relationships
The number one thing to focus on as a real estate developer is to network and build relationships with all important people in the locality, right from the local real estate agents, to the construction material supplier, to the labor manager, financing company directors, government officials and so on. Without having such deep contacts everywhere, you won’t survive too long in the industry. You will be faced with many issues while developing a property, whether it be in receiving the government approval for construction, managing the workers, funding specific developments and so on. Having contacts everywhere enables you to resolve all such issues rapidly without wasting any time, thereby allowing you to focus on your business.
Make sure that you do a very thorough research on any property you wish to develop. In addition to conducting research yourself, you must hire two or three external teams to carry out the profitability study of a proposed development project. This will give you a good overall idea of how the project might turn out financially. And when analyzing the potential profitability of a project, be sure to take into account all the future changes that are expected in the region. For example, if a particular locality will see a large government investment in the coming years, then the region will definitely see an increase in real estate prices.
Hire The Right People
In the course of being a real estate developer, you will likely become indebted to many people for the help they have given you. And some of them might seek to profit from the situation by asking you to give them certain tasks you are planning. It can be acquiring a plot, managing the construction, and so on. It will be good for you if you stay away from assigning tasks based on such relationships. Instead, be sure to find out and hire the right people for the job.
For example, if you think that working with a company like VisionOneProjects.com.au will help you to see through a development project in a more streamlined and safer way, then definitely go with them. Don’t assign the task to someone else just because you feel indebted to them. That is a terrible way to manage your business. And as long as you hire people based on their talent and commitment to work, you should easily be able to build a team that will stand by your side and help you become a successful real estate developer.