Property development is generally very complicated because it entails various factors and thousands of work hours across different specialized areas of expertise. It is also known as real estate development, and its purpose is to raise the value of specific buildings or land.
During this process, a house, building, or any other type of construction is obtained, and then they are remodeled, so they can be sold for a higher price. This is a great way for people to grow their wealth.
Now, that you’re familiar with the basics when it comes to property development, it’s time to focus on property developers who play a key role in this whole process. So let’s see what they normally do.
What Do They Do?
A real estate developer is here to take care of everything that’s related to the property acquisition, starting from planning, and financing, to implementation, and many other roles. The entire project management team is responsible for financial success and can take part in various activities, such as construction company, project company, broker, architect, or owner.
The project manager is the one who supervises the property, the subcontractors, the users, the capital, and the planning. As soon as everything regarding this idea, financing, and location is defined, the project can be blasted off.
The main goal of the conception stage is to showcase the potential profitability of the property to a variety of different people, like future users, capital providers, investors, and, at times, even the public.
That’s precisely why it’s of huge importance during this stage for all kinds of analysis to be shown, such as location analysis, market analysis, competition analysis, usage analysis, cost analysis, and risk analysis.
In addition, real estate developers play an integral role due to the fact that they bridge the gap between the construction capability and the investor’s demands, expectations, and needs. They accommodate the value of a project when it comes to functionality, location, design, and cost.
What Makes A Fantastic Project Developer?
Just like with any other profession, this one also involves a certain set of skills that a person must possess in order to consider themselves to be a great project developer. As previously concluded, property development isn’t smooth sailing, hence first and foremost, you need to be very interested in apartment developments, house developments, etc. If that doesn’t pique your interest, then it’s highly unlikely you’re going to succeed.
Those, on the flip side, who are successful in this line of work, typically give two hundred percent of their effort into this. You need to be proactive, meaning that you can’t just sit around and wait for a good opportunity to arise.
That doesn’t lead anywhere. You need to be the one who’s going to snag it. If that’s one of your goals, then you should take some time to browse the real estate sites, contact real estate agents, and check to see if there are any auctions in the near future (in terms of property development opportunities).
Expand Your Network
This is something that should eventually become your habit. Every seasoned and accomplished property developer has a broad list of connections and still focuses on expanding it because they know how crucial that is in this industry.
Knowing estate agents, lawyers, builders, architects, and many others is something that can make or break your success. The more you know, the better! Thankfully, there are lots of options at your disposal that enable you to reach these people, like emails, LinkedIn, and others.
You Need To Always Work On Yourself
Even if you reach the point where you can call yourself successful as far as this profession is concerned, your efforts shouldn’t stop there. On the contrary, this should encourage you to improve yourself even more.
There are so many useful things that you can opt for that are going to help you be better as a real estate developer. For example, you can enroll in further training, and online courses, find some informative books and blogs that cover this topic, and many other things that will help you hone your skills, and expand your knowledge even more.
Is Property Developer The Same As General Contractor?
Those who aren’t particularly familiar with these two professions may think that they are practically the same, which isn’t exactly the case. It’s safe to say that both of them play an important role in the construction industry and that’s something that they have in common.
A real estate developer has a duty of conceptualizing, supervising, and planning the development of a specific property, from the beginning to the very end. They are typically hired for larger projects, like commercial real estate development, housing estates, etc.
In these instances, they are the ones who buy the land, secure financing, acquire approvals and permits, collaborate with engineers and architects, and other creative people to get the design that’s required.
In contrast, a general contractor is usually introduced by the property developer and their main role is to conduct the construction of the property. In addition, they need to handle day-to-day operations on the construction site, starting from ordering the necessary supplies, hiring subcontractors, and handling logistics.
One of their goals is to ensure that the project is done on time, that it doesn’t exceed the budget, and, most importantly, that everything is executed in a safe manner.
Is Being A Real Estate Developer A Risky Job?
Saying that it’s risky would probably be an exaggeration, however, it’s safe to say that it does come with certain challenges. That’s because the situation is always unpredictable when it comes to the completion of the project.
If you are planning on becoming a property developer, yet you want to decrease the likelihood of any risks, then, for starters, you need to learn all about the market, its ins, and outs, because that’s something that’s going to help you manage and alleviate risks.
Being a real estate developer can surely be a very exciting profession, but it definitely comes with numerous tasks and responsibilities that will help them bring a specific project to life. What is undoubtedly true is the fact, that without them, the real estate industry wouldn’t be as successful.
