Tips for a First Time Property Developer
Tips for a First Time Property Developer
Many people in Ireland aspire to start their own property development business, and it’s no real surprise. Not only does this provide an opportunity to make a good amount of money but also it is a great way to show your creative side and does not require any specialist qualifications.
Property development can certainly be an excellent business idea if it is thoroughly planned. Have you ever dreamed of starting your own property development business? Now is a perfect time to turn your dream into a reality because it involves no rocket science to become a property developer.
You can start by buying a run-down house, renovating it on the weekends and selling it for a profit, or renting it out to get a good amount of money each month. However, this is not as easy as spelling the word PROPERTY. Like all other professions, you need to be prepared first to become a successful property developer.
7 Tips on becoming a first-time property developer
If you are interested in starting your own property development business, then you might be wondering where to begin. To set you off on the right path, some of the tips to help you become a successful property developer are:
Do detailed research on property development
If you want to become a successful property developer, it is vital to start your journey by doing detailed research on the property development business. You will find tons of articles on the internet related to the property development business, so read a lot to expand your knowledge.
During the research process, you also need to decide which type of property development you are interested in, such as residential projects, commercial, or many others. For example, if you are planning to start a residential development business, you should find new homes in your area that are similar in use and size to what you want to do.
However, if you are planning a commercial development business, you need to see some commercial buildings in your area.
Make a business plan
When starting your own property development business, the most important thing to do is to construct a clear and detailed business plan. Then, calculate the costs and set a timeline for your project.
When planning the financing for your project, it is a good idea to consult a financing expert. Most banks also offer financing advice tailored explicitly to property development. For example, if you plan to start a development project, you will need one loan to buy the land and a development loan to build on top of the land.
Any successful property developer needs to schedule every task required to complete the project, no matter how small or big the particular task is. As a developer, it is your job to know what needs to be done and at what time.
You need to understand that a dollar amount is attached to every passing day in a property development business, so it is important to ensure that no hours or days are being wasted just because of your poor scheduling.
So, make sure to schedule every task from the beginning of the project and keep refining it throughout the process.
To become a successful property developer, you need some reminder system in place that works for you. There is no point in scheduling everything only to get distracted by something in the end and forgetting whatever you were supposed to complete.
As a property developer, you will have many things coming at you from all over the place. So, you need a fail-proof system in place to remind you exactly what needs to be done and at what time.
Once you become a property developer, you will find it difficult to remember everything. However, countless reminder applications are available on the internet to help you get your work done at the right time. So, set up your reminder system and train yourself to use it. In the end, you definitely will thank yourself for doing this.
Location matters the most
When it comes to developing a property, three essential factors that you need to consider are location, location, and location. However, finding a good location for your development project may take a lot of your time and effort.
From a property development perspective, a good location does not mean finding a place in the center of the best area because then you will also have to pay the highest price, reducing your chances of making a profit.
The best location to choose is the one on the fringes of a good area, and developing it will also enhance the beauty of that area. But, most importantly, you also need to think about what your ideal buyer would consider a good location.
Suppose you are targeting young professionals, then a central location with an excellent public transportation system will be their priority. However, families will most probably look for proximity to schools or parks and away from busy roads.
Paying high does not mean making a huge profit in the end
Assumptions can cost you significant time and money in the property development business, so it is better to train yourself at the beginning of your journey, NOT TO ASSUME ANYTHING. So paying more than you had planned will only result in you struggling to make a profit when you sell.
So, don’t pay more and expect to make it back in the long run because you don’t know what will happen to the market by the time you complete the project and start looking for your ideal buyer. To give yourself the best possible chance of making a good amount of money, you should always try to buy below the market price in the first place.
The key to becoming a successful property developer is finding people who want to sell. For this purpose, you should try to visit the auctions as much as possible because you stand a very good chance of finding very keen people who want to sell their property. Try to make a direct deal with the seller to avoid the estate agent fees.
Build a reliable team for yourself
It is necessary to be realistic about your skills and get professionals onboard for jobs you cannot tackle alone. Anything not appropriately done will end up costing you more in the long run. If your development project is just about making renovations, then you can handle it yourself.
However, if the development project is very complex, it is better to hire a reliable builder to finish the job on time. To choose the right builder or architect, see samples of their work before hiring them so that you know the quality of work to expect.
Many people want to start their property development business but don’t have the right amount of patience and courage required. Timing is everything in the property development business. When looking for a good location, you need to research properly and stay calm. Look at sold prices in the area, calculate the construction cost and then decide whether the location is suitable for your development plan or not. To become a good property developer, you need to have a forensic eye when choosing an area to develop.