If you like the process of buying, selling and dealing in real estate, you can be a good candidate for a real estate developer career.
Who is a real estate developer?
Developers are entrepreneurs who find and buy land and finance real estate transactions to be built on that land. They create and control real estate development from start to finish, taking the greatest risk but reaping the greatest profit – in the end. They also buy real estate and upgrade existing buildings. You can make very lucrative profits or suffer devastating losses. This is not a career idea for playboys.
Okay, so you bought and sold or rented a house or part of a commercial property and made some money the first time. You are probably lucky. The first step to continued success in real estate development is getting the right education. A degree in law, finance, construction management, or urban development is a good place to start if you can go this way. If the school is not something that you have the time and willingness to do – it’s best to try to find a job with someone from the real estate industry or get a broker license by building your portfolio and basing on industry knowledge.
When it’s time to finance your first development project, you will be ready and able to obtain loans to make it happen, and you will have basic knowledge that will help you comprehensively take care of the purchase and development of your property. If possible, work on any projects related to commercial real estate. Residential real estate may allow you an easier start in your career as a developer, but the reward and return on investment will be lower than in commercial real estate – this is where most developers make real money.
Remember that real estate investing is a very risky endeavor, but the payoff is just as great if your development is success oriented. This does not mean that you are taking an insane risk. You have to work smart and hard, and after a short time you will notice specific benefits.