Property development can be very profitable if done right. If you are new to property development here are some useful tips you should consider for guaranteed success.
- Choose The Right Property
Do you want to purchase raw property or something that already has an approval for development? Of course, the right decision depends on your risk tolerance, the property location, duration of investment and the amount you can obtain for financing. You will pay more for a property with development approval but you will have an easier time since all the preliminary processes have been handled.
On the other hand, raw land will be cheaper but there is a lot of uncertainty associated with it. For instance, you will take time to go through the development approval process and it might be rejected in some cases. Always purchase raw property at a lesser price because there is a lot of risk involved with it.
- Choosing The Right Builder
You need the right builder for your new property. You can start by interviewing several builders and ask a few leading questions to determine whether or not they are fit enough for your project.
- Are you working on any projects right now? If so, what are they?
- What is your lead time on any project?
- What’s your specialty in property development? Is it duplexes, residential, speculative or commercial property?
From these answers you can shortlist a few builders and proceed to do more research on each company. Your final choice should be a builder who has been in business for at least a decade. It should also be a company with consistent work without any significant lulls or peaks. If possible, conduct face to face interviews to determine whether or not the builders can meet your specific property development needs.
- Create Marketable Property
You need to develop property that people are interested in buying. You need to do your research and learn everything there is to know about the area and the most desirable property for the location. If possible, consult with the local realtors. They can provide valuable information about the properties in high demand as well as their attributes. You can also do a lot of online research to find out the asking and final price for any property in the area as well as how long it takes to sell.
For more information on property development, you should visit Property Shell website: https://propertyshell.com/