Real Estate Development is creating new buildings or properties, from acquiring land to designing and constructing the facilities to marketing and selling the finished product. The process can be lengthy, complex, and expensive, but it can also be enriching for those willing to put in the time and effort.
By understanding the Real Estate Development process, you can make informed investment decisions and increase your chances of success.
The first step in Real Estate Development is land acquisition, which involves acquiring suitable land for development. There are several ways to acquire land, including purchasing, leasing, or inheriting. When selecting a piece of land for residential development, there are a few critical factors, such as location, size, shape, and zoning restrictions. Conduct due diligence on the property to ensure no hidden issues or liabilities.
Before starting a development project, a Feasibility Study is essential to determine whether the project is viable and financially feasible. A Feasibility Study typically includes a market analysis, site analysis, and financial analysis, among other things.
Don’t miss this step and work with professionals with Real Estate Development experience to ensure the study is accurate and comprehensive.
Once the Feasibility Study is complete and the land is officially yours (finalized the closing), the next step is to design and plan the development. This phase involves creating a site plan, designing the buildings to meet the target market's needs, and complying with local zoning laws and state and federal codes.
Before submitting for a building permit, you will need the project's architectural design, one of the most significant aspects of the design and planning phase.
The design should be visually appealing and functional and meet the target market's needs – and yours – while also adhering to local zoning and building codes. Having a remarkable professional team who can create a design that meets all these criteria will help you avoid costly mistakes and changes during the permitting process and construction phase.
The permitting process can be complex and time-consuming. Every lot is different and has it's own particularities. Even the same sized lots on the same street can have different restrictions, so working with professionals with experience in navigating the process, is critical.
After the Design and Planning phase is complete, the Construction phase begins. This phase involves breaking ground and building the structures according to the approved plans.
Work with a reputable contractor who can manage the construction process and ensure the project stays on budget and schedule.
Once the Construction is complete, the final step is to market and sell the residential properties. This step involves creating content and advertising through various channels and pricing the properties competitively.
Working with a real estate agent with experience selling residential properties ensures the sales process goes smoothly.
Real Estate Development can be challenging, but it can also be very rewarding with proper guidance and expertise. By understanding this process and working with experienced professionals, you can increase your chances of success and achieve your investment goals.If you're interested in residential real estate development, don't hesitate to contact us for help. We'd happily guide you through the process and help you achieve your goals!