Have you ever thought about how to become a real estate developer?
Well, stick around because in this article I’m going to share 13 tips that are guaranteed to fast track your journey to becoming a real estate developer.
When looking to start your journey as a residential property developer, there is no question it can be daunting, it’s a high stakes game and there are a lot of moving parts.
I remember when I undertook my first dual occupancy project, it felt like there were land mines everywhere.
And to be fair, their kind of is, which is why I’m so passionate about sharing my knowledge and experience.
I want to shout it from the rooftops and help as many people as I can.
If you do put the time and effort into learning everything you can, it can and will change your life.
As it has done mine and many of our clients and investors over the journey.
1. Planning Zones and Overlays
When learning how to become a real estate property developer understandably, there is an information overload in the beginning, and it can be overwhelming.
If there is one thing you need to stick at and ensure you have a good handle off it’s the residential zones and planning overlays that are relevant to the areas and types of projects, you are looking to undertake.
It’s a non-negotiable, you need to be confident in zones and overlays, or it will hold you back.
2. Learn How to Identify Feasible Sites
I say this all the time here on the channel.
You must understand the timelines and costs involved with the kinds of projects that you are looking to undertake.
Check out these case studies that will get you heading in the right direction.
And check out this article where I explain how much land you need to build 2 and 3 tonhouses.
3. Get Familiar With Your Local Area
We starting out learning how to become a real estate developer you need to have a good grasp of what’s selling in the area you plan to develop in. What buyers are looking for and what is commanding a premium.
You need to know what is getting through town planning.
This is critical IP that you need to build up over time. You need to have your finger on the pulse so you can have confidence in your numbers when it comes time.
4. Understand Sites Orientation and How It Affects What You Can Develop
When looking at a sites orientation you need to be able to look at a site and quickly appreciate what you are going to be shadowing.
You must understand the relationship of how that will directly affect the design; it’s layout and of course size.
5. Understand Setbacks and the Implications They Can Have on a Project
For whatever reason, more often than not they don’t get considered.
Setbacks can significantly impact what you can achieve on your site, so they need to be looked at early to avoid a potentially devastating surprise later in your project when it is too late.
6. Know About Services
You need to understand the different services required for a townhouse development site and know what to look out for.
- Where are the sewer points are that you need to connect to?
- Where is the power source going to come from?
- And where is your legal point of discharge?
- Does the site have any easements?
All of which can significantly affect both the design and cost of your project and ultimately, it’s overall outcome.
7. Build a Network of Providers
You can’t understate the importance of building a network of the most critical suppliers and providers that you are going to need to complete your project.
As the old saying goes, you are only as strong as your weakest link. The importance of building a trustworthy and reliable network can’t be overstated.
We are talking about;
- Town planners
- Land surveyors
- Building surveyors
- Townhouse builders
- Subdivision builders
- Duplex builders
- Sales agents
- Interior designers
- Finance brokers
To name a few.
8. Surround Yourself with Likeminded People
It’s no secret that you are the average of who you surround yourself with. So be smart, surround yourself with people that have a similar mindset and ambition.
Then you can learn from each other and feed off each other.
Consider partnering with someone to minimise your risk. Having someone on your side when starting out learning how to become a property developer can be a game-changer. Make sure you put the correct agreement in place.
And if you don’t have direct access to like-minded people then read books.
9. Don’t Underestimate Your Commitment
If you aren’t living and breathing your project, you’ll quickly start to appreciate how quickly days turn into weeks and weeks into months.
If you aren’t ready for it when the clock starts ticking, it will blow your mind how fast it moves.
10. Patience and Discipline
Make sure you exercise patience and discipline throughout most, if not all stages of the development process.
Never rush, always put time into researching and learning everything you can so you can make educated decisions with confidence.
Don’t let timelines or perceived urgency dictate your decisions.
There will always be another site or another builder, whatever the case may be.
11. Don’t Make Decisions Based on Emotion
If you are developing for profit, then all decisions you make must be made without emotion.
Emotional decisions have a huge potential to impact your project’s outcome negatively.
It’s irrelevant what you want, like or feel.
What matters most are the facts and the numbers. These are the only factors that should be considered when making project decisions.
12. Trust No One (Do Your Own Research)
By trust no one, I mean do your own research.
You should absolutely draw information from as many reputable places and people as possible, but you need to take whatever comes back with a grain of salt.
You can’t assume that everything you are told no matter who it is from is a fact. If you do, it has the potential to trip you up when you least expect it.
Real estate property development is a high stakes game. You need to be able to gather all the information you can and ultimately have the knowhow to fact check it if needed.
You don’t want to have anyone to blame but yourself for whatever decisions you make.
13. Have a Whatever it Takes Attitude
Don’t ever put limits on what you can and can’t do. Anything is possible if you believe it is and if you’re prepared to think outside the square and work hard.
If you don’t have the money, then find money partners. If you don’t have the time, make sacrifices and figure it out.
No matter who you are or where you are in life, you can become a property developer, there isn’t a reason that exists why you can’t.
As long as you genuinely believe that you can, and you are prepared to do whatever it takes.
That’s it guys, that’s 13 tips on how to become a real estate developer.
Looking for help with your next development project?
We help landowners just like you realise the true value of their land. We would love to hear from you 1300 799 277.