No other asset class has created more wealth for more people than real estate. Whether it is building, holding, financing, or any one of the other sub-industries in the field, real estate continues to be, for many people, the single best opportunity for building properity. There have been many books written about how to get started in real estate, but there is one area in particular that seems to be underserved. Be it the high capital requirements to get started, or the great amount of risk involved that turns people away, very little attention has been paid to helping people get started in real estate development. This book serves that purpose.
Real estate development comes in many different flavors, from track home building to urban redevelopment, and this book does not try to focus on any one particular area. Rather, this book is meant to be a guide to help you get started in the area that best suits you. Many of the lessons you will learn here can be applied to a wide variety of efforts, and if used effectively, you can be successful with whatever project you’ve decided to undertake.
Real estate development, as with anything in real estate, carries some risks. Many developers, whether just getting started or experienced, have had project failures. Risk is something every developer must account for and mitigate. We will spend a lot of time identifying potential risks and how to effectively minimize them, and by following this guide, your probability for success will increase.
As with most real estate efforts, the financials of a project are mostly determined up front. If the numbers don’t make sense when you start the project, they won’t when you finish. This is why proper planning is so important to your development success. This book will provide you sources of information to help you with this aspect of development so that you can identify problems before you get too far. Nothing feels better than being able to recognize when a project doesn’t make sense and walking away from it before you even get started, because it preserves your resources for the next deal that may make a whole lot more sense financially.
Being a developer is also a lot like being a project manager. Depending on the size of your effort, you may act as your own general contractor, or potentially contract this out, but in either case you will need to manage certain aspects of your project beginning to end. While not a replacement for good project management training or experience, this book will provide you with a feel for sequencing of events and timing that can help you see your project to success.
The single biggest hurdle to becoming a real estate developer is capital. Due to the risks development projects typically incur, banks requirements for down payment or owner contribution can be much more stringent than other types of real estate purchase. This book will help you identify sources for financing as well as ways to meet the capital requirements in ways other than just cash. We will even cover some of the more creative ways of financing projects that you may have seen covered in other real estate materials that most people don’t think to use in this way.
We will spend time talking about taking the project all the way to closure, and what closure might actually mean. Projects do not run themselves, and without someone in charge to see everything to conclusion, it will not come. By taking the reigns of your development, and seeing it all the way to the end, your chances of success increase.
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