Real estate development seems an evergreen field with lots of opportunities to earn big. However, it involves lots of tedious and complex factors towards success. When you look at Sims Villa showflat, for example, try looking at the backgrounds of Hong Leong and CDL. See how these developers have gained success in real estate, and you’ll see it’s definitely not that easy.
But despite of its complex and difficult nature, it’s certainly possible even for an individual0 to succeed in real estate development. You just need to know some of the basics, do some research as well as consult with experts to hop on the right track. That’s how you’d get a good chance of earning big from a piece of property.
Here’s how Real Estate Developers gain Success and Earn Big
- They Develop Properties Efficiently
The key of earning big in real estate development is to improve a property into a valuable asset. Most developers aim to improve a single property into a multi-unit one, with each unit carrying substantial value.
Take a housing project as an example. It begins from a simple large piece of undeveloped land property. Then, developers would develop it into a subdivision with dozens of houses available. Buyers can purchase each unit individually, and all units have significantly higher sum value than the original land property.
Developers make it possible by dealing with many critical factors efficiently. Remember that the real estate is a risky field to venture. That’s why you must keep the other points below in mind.
- Developers Value Property Location
“Location, Location, Location!” You’d always hear such phrase anywhere in the real estate industry, simply because it’s one, if not the most, important factor for a property to earn big. Basically, you must have a property on an ideal location which buyers love. If you already have a pre-existing one in a not-so-ideal spot, you’d most likely to do some compromise such as with price.
If you’re still ought to buy a land area, you must consider dozens of data to identify a sweet deal. For example, some properties are great for investment even if it’s located on a seemingly undesirable area. But you know that city development and urban planning is surely going towards it in the near future. Therefore, you can purchase such land on lesser price, while expecting potentially big returns.
But if you already have a land property on a bad location, it’s still up to you how to earn from it. Research its locale, and see what type of property suits best on it, for example.
- They know the Worth of Time
“Time is Gold” is certainly applicable in the real estate industry. It indicates expenses during the development and construction phase, whereas it affects the revenue you’d get later on. For example, developers want a project to be done in a lesser amount of time. That’s to minimize expenses for labor and resources throughout the construction process.
The longer time construction would take, the more loss developers acquire. That’s because the expenses along the way inevitably pump up the final price of a property. And if you sell properties on higher price, there’s a chance of lesser buyers looking at your deals.
You don’t want to abandon a project, or end up selling it short because of such time factors.
- They Establish Good Connection
Developers have a network of entities they need for a project to become possible. Think of contractors, suppliers, partners and real estate agents among other professionals and companies. Those are all needed to develop a property, much more when planning for multiple long-term projects.
Developers choose to establish connections instead of hopping from one entity to another because of certain benefits. First, working repeatedly with certain companies makes them familiar with your needs and preferences for a project. In short, it’s much easier for you to work with them, hence completing a project in lesser time. And second, these companies may offer sweeter deals such as discounts because of you getting their products and services on a long-term basis.
- They don’t Close Doors for Advice
Lastly, the most successful developers always welcome advices from other experts. However, be sure to get it from reliable professionals, and not from people who doesn’t know enough. That’s the best way of acquiring sensitive knowledge for your projects.
Yes, being a real estate developer isn’t easy, but it’s certainly achievable as well as it’s possible to earn big from it. Just keep the points above as your guide, and don’t miss to consult professionals along the way.
