How to Get Into Real Estate Development

Are you looking for a career change? Do you want something that is challenging, fun and lucrative? Then real estate development could be the thing for you! Right now, more people than ever are looking for jobs that truly satisfy them, rather than just paying the bills, and they are trying to follow their interests and their passions to make a career out of them. This is not always easy. However, if you are interested in property then there is no better job than a real estate developer! And there is definitely a lot of money to be made if you are willing to work hard and become excellent at what you do. If this sounds like something you might like to do, then this article will give you the basic facts that you need to know to get into the real estate development business.

Real Estate Development - What Is It?

A real estate developer is someone who deals in property. They buy, sell, build, lease, renovate - anything that will help them to make a profit out of the property that they own. The form of real estate development that you will most often hear of is "flipping" - that is, when someone buys a property that needs fixing up, then works on the renovations and sells it at a higher price, thus making a profit along the way, usually in a relatively short amount of time. There is an art to this - it is not just repainting the walls and changing the light bulbs! A real estate developer will buy a property based on a specific target market that they think would like to buy this type of property in this area, then they will renovate it to suit that market. If the market is young couples with no children, they will probably make the place trendy and modern, with a focus on entertaining. If the market is families, then they will probably renovate with a focus on spending time doing family activities. This is why it takes brains and an understanding of the industry in order to be a successful real estate developer.

Real Estate Development - What Else Does it Involve?

Those who are in the real estate development business will not always just flip properties for a living. They might also buy properties that can be rented out. This means that the renter is paying off the developers loan for the property, if they have one, or is simply making a monthly wage from it. There is the problem of vacancies, which is one thing that is against buying property to rent out. Real estate developers might also build property themselves from scratch. They will find a plot of land that can be built on, and then determine what would work best there. This might be a block of units, some townhouses or a stand alone house. They will need to work out exactly what the best type of property would be if they want to make the most profit. Then they will go about building it. This sort of development takes a lot of outlay - the developer will have to pay architects, builders and other contractors. However if they can afford to do this then they will probably make quite a good profit from this sort of development as long as they have researched and built the right type of property.

Real Estate Development - Who Can Get Involved?

Becoming involved in real estate development is something that anyone can do. You do not need formal qualifications or training, since you will basically be working for yourself. What you do need is commitment and the guts to make risky decisions. Real estate development is all about taking calculated risks - at the end of the day you are never really sure that you have targeted the right market, or that you will be able to find a buyer for your property. But, if you can live with this uncertainty, then you might be cut out for this type of business. It will probably help if you have some experience with property or development - perhaps as a real estate agent or a project manager. But it is definitely not necessary. Accountants, lawyers, retail staff - people from all walks of life have gone on to become successful real estate developers!

If you are sick of your job and ready for a new challenge, then you should consider real estate development. You will need some capital to get you started and you will need to spend a lot of time studying real estate, real estate trends and the different sort of markets for real estate in your area. If you can commit yourself to studying and learning then you will be much more likely to make a good living from getting into the real estate development industry.

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