Do you want to get out of a rut and make a change in your life? Have you always dreamed of being self-employed and financially independent?
Thousands of people have asked these same questions and have opted to try their hand at property development.
The great thing about property development is that it does not require a college degree. Of course, that doesn’t mean everyone will be able to take on this kind of venture and be successful. It does require some basic skill sets and a certain dogged attitude that will keep you pushing forward.
The make things clearer, here are the basics of what property developers do:
Locate, visit and make determinations about real estate properties and their potential for development.
Interact with contractors, bankers and/or investors.
Manage and balance financial documents.
Research new and ongoing potential projects.
Develop excellent time management skills.
Learn to comply with rules and regulations, such as bringing a property up to code. Understanding local zoning ordinances is another example.
Troubleshooting problems when they come up unexpectedly.
Networking with other entities/organizations in the real estate sector.
A good example of just one way to get into property development is house flipping. This is when a person buys a somewhat or significantly run-down home and then invests money to restore it back to a safe, code-compliant and livable shape. The next step is to sell the home at a price that covers what you paid for the home, the refurbishing costs and a healthy mark-up that represents your free-and-clear profit.
Thousands of people in the U.S. house flip as a hobby. It’s a fascinating and often lucrative add-on to their day jobs. House flipping is definitely something that can be accomplished by working around your regular 40-hour-week job. The average house-flipping hobbyist handles two to seven houses per year.
Now get this: According to ATTOM Data Solutions, the average gross profit for flipping a house was $62,300 during the first quarter of 2020. That’s an average 36.7% return on your investment. Try getting a rate like that from a savings account or even buying stocks!
No, nothing comes easy and property development is rife with pitfalls and the potential to lose money. But for the right person with the proper skill sets and attitude, property development is an exciting and profitable activity.