If you’re an entrepreneur looking to make the leap into large-scale real estate development, there are a few things you have to know about how best to make the transition. Real estate development can be hugely rewarding for people who are thrilled by the idea of seeing a project through from inception to completion, and who are passionate about property development. But along with greater reward and responsibility, there are also greater risks involved as well. Here are a few things you should know before making this leap in your career.
What do Real Estate Developers Do?
Like the name implies, these people are responsible for the development and redevelopment of properties. This means they’re involved in every step of the process, from land purchase to building the projects, and the focus tends to shift from residential toward commercial development. Where agents may focus on the sales aspect of real estate, a developer is more like a project manager. People in the industry tend to be more attracted to the profession because it offers a holistic approach to a complex set of problems.
Requirements for Becoming a Developer
While no traditional education is required to enter a development career, that doesn’t mean that it’s a suitable profession for just anyone. It’s important to have experience in real estate in order to have a better understanding of the risks involved, as well as of the different moving parts of the industry and trends in the market. If you already have this experience, then you’re on the right track already, but if not, try to focus your education on real estate investment. From there, you can build a network of other professionals, which is crucial to the development game. Your network should contain a vast array of professionals, from architects to general contractors to appraisers and engineers. Having connections to a wide variety of professionals will not only help you gain access to a wide array of expertise, it will also allow you to hire colleagues you can trust.
Maintaining an Ethical Practice
While, again, not strictly a requirement, maintaining your ethics and integrity is crucial to any business founder and will set you apart from others in the field. When you’re first getting started, it’s important to consider your motivations for doing so. Remember that your actions and decisions will not only reflect on you, but on your brand, and on the network of professionals you’ve chosen to associate with. Knowing that, it’s important to establish a set of standards for yourself early on and act accordingly.
If you’re looking to continue a conversation about how to make the leap to real estate development, leave a comment below or contact Raffi Shirinian, and you’ll be on your way to making those first steps toward your next investment.