In the real estate industry, there’s more than one way to build a successful business without having to become a realtor. People who are interested in this particular career path may want to consider becoming a real estate developer. Real estate developers are entrepreneurs who find and buy land, develop the property, and collect rent from lessees or sell developments for a profit.
Real estate developers have the potential to make highly lucrative profits, but it’s not a career for everyone. You need to have a deep understanding of the market, know how to build a knowledgeable team, and have the drive and determination to turn your own visions into reality.
Here are 3 ways to become a successful real estate developer.
You don’t necessarily need a university degree to become a successful real estate developer, but you do need extensive knowledge about real estate transactions, construction, contractors and urban development. Without understanding the ins and outs of this industry, you could be setting yourself up for failure.
Robert Pellegrini, President of PK Boston, a real estate law firm based in Massachusetts suggests, “If you’re not a market expert, find a good real estate agent who is. Learn to be aware of the market and don’t bite off more than you can chew.”
Choose the Right Team
Real estate development will never be a one-man job, which means you have to build a team of experts that will help you see your vision through from start to finish.
Canadian real estate developer Sam Mizrahi started his first condominium project, a 9-story building known as 133 Hazelton Residences, in Toronto in 2011. Today, Mizrahi and his team are developing The One Toronto, a luxury tower that will become Canada’s second-tallest structure, after the CN Tower, standing over 1,000 feet high.
Mizrahi explains that, you need to assemble a team of highly intelligent and motivated individuals. Typically, this team consists of a builder with a good reputation, a designer, an engineer, a zoning expert, lawyer, etc. These separate set of skills are essential to helping you along the journey of building a big development.
Have the Right Personality Traits
Aside from obtaining an education and building a team, successful real estate developers have some key personality traits in common. Creativity is the first important trait. Devising a plan for a build and executing it is not enough. You have to be more creative in the world of real estate development in order to stand out from the competition.
Second, you must be patient. Real estate development takes time. “Be mindful of the process and the timeframe you’re looking at. Plan for an extra six months to account for unseen challenges and delays at the local level,” says Pellegrini.
Remember, it takes a village to build a village, so if you think you have what it takes to become a real estate developer, then you should start building the foundation that you need to succeed as soon as possible.