Building a Fortune with Real Estate Development

Real estate is one of the most rewarding sectors. Undoubtedly, many people want in and get a piece of the action for themselves. If you also want to carve a career in the real estate space, then you can choose from many alternatives.

You can select one of the well-known options, such as acting as a buyer’s/seller’s agent. If that does not excite you, then Real Estate Development is another worthy contender. Instead of simply acting as the third party to a transaction, you will be directly involved in the creation of different types of estates.

Real estate developers enjoy quite a reputation in the society while making good bucks, with Donald Trump and Alfred Taubman being the leading examples of the same.

What is Real Estate Development all about?

You might think that the term itself is self-explanatory, as in a real estate developer just improves or develops properties. However, that is not the case. There is much more to it than what appears on the surface.

Simply put, it is the developers who turn a building into reality. Whether it is the construction of a small house or development of a humongous skyscraper which can be seen from miles away, they are the ones who develop a vision and get things moving.

While they do not actually build the estate themselves, they are the ones who are given the daunting task of arranging everything associated with the completion of the project. Long story short, they are those individuals who assume all responsibilities for the success or failure of a project worth millions, or even billions of dollars.

How does it work?

Real estate development is broadly divided into two categories:

• Land Development
• Building Development (also goes byProject Development)

Land developers typically purchase an unimproved land, meaning that it is yet to have utility connections such as electricity, roads, water, any sort of grading, and so forth.

Once the land is bought, developers’ spring into action. They define ‘covenants’, which are essentially the context of any improvements or builds that the developers have in store. Further, they obtain ‘entitlements’, which is a permission or permit to get on with their plans.

As soon as entitlements and covenants are in order, the land development process can begin. It usually initiates with earth grading, leveling, and zoning. Later, roads are planned and paved for improving connectivity (intercity as well as local).

Next up are the land developers. They strategically plan the location of buildings such as offices, homes, retail centers, etc. that are to be built on the land. Both building and land developers cross their paths quite often and need to work very closely to ensure that the real estate development process is carried out meticulously.

What do they need?

To begin with, a real estate developer is going to need cash, a lot of it, in order to buy an appropriate piece of land on which they could build on. The funds can come from their own pocket or investors, but without a set budget, they cannot do anything.

Once they get their hands on the money, their next task is to form a good team. Just like an orchestra needs the right musicians for a magical performance, a great team is paramount to the successful fruition of the project. The developers partner with the likes of architects, electricians, plumbers, carpenters, and builders to ensure that their project sees the light of day.

The last thing on their list is a dependable raw material supplier. It is literally the part and parcel of a real estate project, which is why it is vital to make sure that the supplier is reliable and delivers only high-quality products for the project.

The Bottom Line

As lucrative as the rewards can be, property development also comes with its fair share risk. To put it simply, the outcome of a multi-billion dollar project is completely on your shoulders. This is not something that can be done by halves as a failed experiment will prove to be very costly.

Hence, it is important that you enter this field only if you have the time, knowledge, money, and dedication needed. Otherwise, you may find your reputation up in tatters.

Arrow Properties is the leading residential and commercial real estate development company in Rancho Cucamonga. You can depend on our years of experience for a hassle-free development experience. You can forward your queries @ bb@arrowbcd.com. Take a look at our website:  http://www.arrowbcd.com