Real estate development offers a great opportunity to grow wealth, but it also requires more hands-on involvement than other types of real estate investing. This is because it involves the construction of new structures rather than simply updating an existing structure. Even in real estate development, there are many more things to consider as well as the physical labor involved.
How Do You Get Started?
You can start out with a career as a real estate agent. You’ll have the opportunity to network and learn the market before buying your own properties. The second most common route to take is to work in the construction trade, and use that knowledge to develop your own properties. Finally, you can work for an existing real estate development company. Once you learn the ins and outs of the trade, you can branch out and start your own development business.
What’s Involved in Property Development?
Most people understand the basic concept of buying a vacant lot and building a residential, commercial, or industrial structure. However, there’s a great deal of paperwork and bureaucracy involved before you get to the physical development stage of any project. You’ll have to create a cost analysis of your project, raise funding, and get the approval of the local government. In some cities, approval must be granted by the community, so you may have to give a presentation in a town meeting format. Once you get approval, you can move forward with your plans.
Choosing Between Different Types of Developments
You can work in one area of real estate, or you might choose to take on a variety of different projects. Some beginners start with residential real estate development because the projects are usually less costly to complete. Since a commercial or industrial structure must be sturdier and must be designed to last longer, the materials used in their construction have to be more durable. The type of property you choose may depend on the resources you have available to invest in the project.
If you’re still interested in pursuing real estate development as a career path, be sure to do your due diligence. Much of the risk that’s associated with real estate investing of any type can be minimized by doing proper research. If you know the market and the needs of people within it, you can turn real estate development into a lucrative career path.