How to Become a Successful Real Estate Developer
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Don’t Be Left Behind…..!
By Ronald Kimmons, Demand Media
Real estate development is the act of purchasing real estate, making improvements to the buildings on it or constructing new buildings and selling the real estate again. Real estate developers are professionals who specialize in this type of work. Real estate development can be a highly lucrative business but can also result in heavy losses as well. To succeed as a real estate developer, you must recognize potentially lucrative opportunities and predict market trends.
Obtain an education relevant to real estate development. Earn a degree in finance, business administration, construction management or urban development. Take the necessary classes and assessments to get a real estate license for your state.
Work for an employer in the real estate business. Find a job that gives you the opportunity to deal in either the buying, development or selling of real estate. Try to absorb as much information about the industry as you can while working in this capacity. During this period, build your personal savings and credit score to help you finance your own real estate development business in the future.
Establish a legal identity for your business. As the real estate business can present high financial risks, form a business entity that provides you with liability protection, such as a corporation or a limited liability company. Forming such an entity can mean higher fees and more accounting issues than you would have for a sole proprietorship or simple partnership, but these matters are nothing compared with the personal cost you could face as a result of a sudden downturn in the real estate market.
Work with construction firms or professional contractors to construct new buildings or make improvements on your properties. Build relationships with such construction professionals to ensure that you can rely on them for timely and quality work in the future.
Research market trends to project rises and falls in real estate prices. Buy when prices are low and sell when prices are high. Use specialized Internet tools and services to get up-to-date information regarding real estate prices.
Build relationships with local and independent lenders to finance your investment activities. As they come to trust you, these lenders can give you swift, personalized service at competitive rates.
Work in commercial real estate. Many developers find it easier to break into real estate development by working in residential real estate, but because commercial real estate tends to deal in larger cash values with less government regulation, this is where highly successful real estate developers make their money.
Reinvest in your business. Instead of spending early gains on personal consumption, put gains back into real estate to make way for explosive business growth.