4 Major Things to Consider When Getting Started as a Real Estate Developer
Commercial real estate development can be a highly lucrative field. Even as remote work becomes the norm, businesses and corporations recognize the value of real estate for physical storefronts, office space, and other profitable purposes. After earning your real estate license, your role as a property developer will likely entail researching the best land to buy, managing budgets for construction projects, overseeing transactions with clients, and more. While the process of increasing a property's value for resale is fairly straightforward, there are some considerations to keep in mind if you want to succeed in the long term.
1. Not Every Investment Is a Good One
Successful real estate developers do not purchase every vacant plot of land they come across. While any purchase can turn a profit if the price is right, there are other factors to keep in mind as well.
Location is arguably the most important contributor to a commercial property's value. If you are looking to sell real estate to small business owners, for example, you should target properties in city centers with lots of foot traffic. If you are in the business of constructing office buildings, choose a site that is convenient for commuters.
2. Safety and Lighting Is Paramount
Prioritizing safety is important at every step of real estate development, from construction and renovation all the way to the end user. Not only is safety a moral requirement, but it will also protect you from harmful liability cases.
Proper lighting is a simple and effective safety measure that can prevent accidents and deter crime. If your building offers a parking garage, make sure to illuminate parking garages and areas with proper lighting as interior lighting is especially important for both drivers and pedestrians alike. Stairwells, vestibules, and walkways are particularly hazardous building elements that require ample lighting.
3. There Are External Services You Need
When tackling a big real estate development project, you simply cannot do everything alone. Perhaps most obviously, you will need to work with a construction firm to handle any building or renovation needs you may have. Experts recommend reviewing licenses, references, and safety records before moving ahead with a construction contractor.
You should also hire a title and settlement service like Beta Abstract to satisfy your insurance needs. Title insurance protects against risks that may arise from mistakes in legal documents or legal descriptions, as well as certain types of fraud.
4. You Will Create Many Contracts
Working as a commercial real estate developer can be exciting when you see a project come together and bear fruit. What you might not be excited about are constant negotiations and contracts with clients, contractors, and other relevant parties.
One way to make the contract-writing part of the job more efficient is to work in Word. This software allows for significant text and format editing that you might not accomplish when working with a PDF file. If a client does prefer using PDFs, you can use an online conversion tool to change a PDF into a Word document and make necessary edits. When you are done, simply save your edited document as a PDF once again.
As you begin your career as a commercial real estate developer, you probably have more details to consider than you can manage alone. Something as crucial as safety lighting can escape your notice, but do not let that hinder you. Rely on the resources and professionals at your disposal and you can find success in the real estate industry.