Property development can either be a hugely profitable venture or a giant money sinkhole. Without the right information and processes to guide you, errors could siphon the investment potential away, leaving you scratching your head and wondering what went wrong. Here are some crucial things to remember when working on your next development.
The Right Property Makes the Difference
When you are scoping out available locations, consider whether you want to purchase land that has already been given development approval or if you are going to start from scratch with raw land. Evaluate the location of the property, how long you are prepared to be invested in the development, the amount of financing you will need and have, and your tolerance for risk with the project. Land that has already received approval may be a more expensive piece of real estate.
The Right Builder Brings the Vision to Life
Successful property development relies on the work of the builder and the ability to make your vision a reality. Visiting a display home is going to be more valuable than talking to a contractor since you will get a feel for what your development will look like. Make sure you know the lead time for the builder, the types of projects that he currently has going, and the areas of specialty he offers. You definitely want someone who has been in the business for more than 10 years.
The Right Marketing Will Bring the Sales
Your profit is going to depend on creating a property that people will be tripping over themselves to buy. Once the build is underway, start by talking to real estate agents to find out where your potential buyers are. Use social media or Postcard marketing real estate strategies to bring awareness of your development to the community. Great property needs great attention.
Getting started on the right foot will help your development be more successful. These are three key ways to make that happen.