A real estate developer is responsible for constructing, renovating, and selling a property. They may also be involved in acquiring land and scouting for development sites.
They must be expert relationships and team builders because much of their work is carried out by third-party/outside consultants like civil engineers, contractors, etc.
Planning
Real estate developers need to have intense research and analytical skills. They must be able to identify new opportunities and avoid high-risk projects. They also need to have good financial and marketing skills.
During the planning phase, real estate developers recognize the potential of a tract of land and select it for commercial or residential development. They then secure the necessary funding to develop the land. They also collaborate with architects, engineers, and designers to establish the design and build plans for the project.
Afterward, they put the property up for sale through a real estate broker or in-house development team. They are also responsible for negotiating terms and conditions with contractors. Moreover, Angelo Ingrassia real estate developer, also has good project management skills as they oversee the process from start to finish.
Financing
Real estate development almost always requires some outside development financing.
The first stage of a development project is usually funded with equity, mostly sponsor capital. This is a high-risk phase where the developer must prove their project is viable and uncover environmental or engineering concerns.
Traditional bank debt funding is 60-80% of a project’s total capital stack. The rest is typically financed with either more equity or a combination of other debt and equity sources. This includes private financing, syndication, and other forms of crowdfunding.
Design
Real estate developers oversee the planning, design, and construction of new homes, office buildings, and retail centers. They hire professionals such as architects, landscape architects, civil engineers, and site planners to address project design; market consultants to determine demand and a project’s economics; attorneys to handle agreements and government approvals; surveyors and title companies to provide legal descriptions of land; and contractors and subcontractors to put architectural plans into action.
Developers also need to consider how they can create sustainable buildings, as more people are seeking greener spaces. Developers incorporating sustainable practices into their projects can boost their reputation and attract clients. Moreover, it will help them stay competitive in a challenging real estate marketplace. Generally, a real estate developer can choose between handling residential or commercial deals.
Construction
Real estate developers must have strong project management skills to ensure that construction is done on time and to the highest quality. This involves working closely with contractors to meet deadlines and ensuring everyone is on the same page.
Real estate developers need to have experience in the construction industry before starting their own development companies. Working as a skilled tradesperson or general contractor gives them a good understanding of building construction and the skills necessary to oversee a project’s budget and timeline.
During this phase, a developer will identify potential tracts of land for commercial or residential development. They will also confer with architects, engineers, and designers to establish plans for a project. They will also negotiate with zoning officials to ensure a site is properly zoned.
Marketing
Marketing is a significant aspect of real estate development, regardless of project size. Developers can use it to create innovative marketing strategies and better understand their target audience. This leads to increased sales and overall project profitability.
In addition to traditional marketing techniques, real estate developers should utilize social media to expand their outreach and reach a more extensive client base. This can help them build a strong brand identity and gain a competitive edge.
