What does a property developer do?
Property developers earn money by renovating existing properties or building new properties, they sell these homes or commercial buildings to make a profit. If you’re looking to get started in property development these six simple tips can help you to get going.
1 . You’ll need a plan
Before you approach your first property development project you’ll want to establish your key goals. When your project is finished do you want to sell the property? Perhaps you’d prefer to rent it out? Are you looking to build a new property, or do you want to buy a property to fix up? Once you’ve figured out these elements you can start writing your business plan. Here are a few elements you’ll need to include:
You’ll need to perform thorough market research.
Outline how you’ll fund the project.
Determine who else will be a part of the project.
Estimate your returns.
Consider a development strategy.
Consider how you’ll carry out admin, marketing, and sales.
Acquiring the land or property.
2. Figure out the financing
Once you’ve performed thorough market research and created a business plan you’ll need to think about financing options. There are several different approaches to financing and you can consult with experts like Lincoln Frost to find the best one for you. However a popular option is a bridge loan, these refer to short-term funding options, put in place until permanent financing is secured. Other options include unsecured loans or a buy-to-let mortgage. The right funding options for you will largely depend on your project type and your circumstances.
3. Finding your builders
If you’re building a property from scratch you’ll need to choose the right people for the job. Choosing a builder for your property development is a key step on the road to success. You’ll want a reputable building team who can produce quality work, and stick to deadlines. To find the best builders you’ve got to do your research, you’ll want to check out their previous work, plus testimonials and reviews. Speak to other property developers, like Walt Coulston, for example, take a look at their diverse property portfolios and see which builders they have used for development projects or if they have any recommendations for you. You’ll also need to check their credentials, and potentially perform background checks.
4. Learn everything that you can
The more you learn about the field of property development, the more equipped you’ll be to succeed. Take a look at the Candea Development website, here there are plenty of useful blog articles for property developers. Learning about the industry is the best way to feel more confident and improve the success of your projects.
5. The perfect location
Property development isn’t just about building a beautiful property to sell, it’s about choosing the perfect location. When you perform your market research you’ll need to focus on the best areas for property development. If you’re developing rental properties, you’ll have to consider who your ideal tenants are. When it comes to property investment opportunities, location is everything.
With the right approach, beginners can make a fantastic start in property development. Once you’ve figured out your strategy and learnt the basics, you’ll be well on your way. There’s plenty to learn and it’s helpful to have a great team behind you.
