The sad truth is that only very few people who try to become real estate or property investors manage to become developers as well. Randall Benderson feels this is a real shame, as real estate development is an exciting field of work. He believes that too few people take on a development project because they fear stepping into the unknown. Hence, he has come up with seven top tips to be successful.
Randall Benderson’s 7 Top Tips
- Anyone can become a property developer. You do not need to be someone who happens to come across a news scoop, you don’t have to have a degree. You do, however, have to want to learn and be ready to solve problems as they appear. Property developers are not unlike commercial project managers. They identify which other professionals they need for advice and communicate with them.
- You must do your research. The markets in Sarasota, Tampa Bay, Phoenix, and any other part of the country are all very different. In some places, retail may be in demand, whereas single family homes are needed elsewhere. You must know what the area you focus on needs.
- Know your figures. You have to find out what your eventual product would cost today, outside of capital growth. Look at what the costs of the development will be and include any possible costs in this feasibility study. If you have never developed real estate before, then you should consider bringing someone on board who is experienced in this. Getting your numbers wrong is one of the biggest mistakes you can make.
- Build a team around you. Experts should come in as and when required, and you should be willing to pay for their services. Speak to others to get referrals and build a network of people that you can go back to as and when required, be that on a next project or later on during the same one.
- Develop a strategy. Know what you want to develop on your plot of land. Perhaps you want to renovate an existing home, maybe you want to construct a block of units, or perhaps you want to subdivide a huge townhouse. It is common for real estate developers to start small, simply renovating an existing property. Others, on the other hand, feel that it is best to start big and immediately start work on a huge multi-family neighborhood. There are no rights or wrongs, so long as you have a strategy in place.
- You must have the right, positive attitude. You will encounter various problems and issues and things will not go exactly according to your plan and strategy. If you accept this from the word go, you will be far more able to solve any problems that you come across, thereby getting the project back on track.
- Just do it. You can only make things happen if you go for it.