Qualities of a Successful Real Estate Developer

1.  Relationships: 

        Relationships are an absolute must, and they take time to develop. A        developer must have relationships with bankers, attorneys, tenants,         equity sources, general contractors, civil engineers, architects,             brokers, appraisers and others. My grandfather used to say that a         developer is like a movie producer who brings a successful team together   to create a successful project. It takes amazing relationships  to pull it       off.

2.  Knowledge Of Subject

a.  Does he himself has some knowledge of the subject or is totally dependent on his staff & outside consultants.

b.  To have some knowledge himself is very necessary because than you can control the things much better .

c.  Total dependence on others can many a times lead to higher costs, poorer quality ,  delayed execution. So as to control all these some knowledge is a must so that you can not only supervise the things to ensure their proper execution but also guide the people involved.

d.  This will always keep them under check and a sense of fear of being questioned.

3.  Risk Tolerance: 

             Some individuals find it very difficult to take risks. I always ask                 students  interested in development how well they think they could           sleep at night if they knew their entire net worth (or more) is                   dependent on the success or failure of a project.

           Prudent developers take calculated and measured risks, and they              constantly look for ways to mitigate risk. Nevertheless, development          is a risky business  that some are just not cut out for.

4.  Treat Investments as Businesses

           It is important for real estate Developers to treat their real estate              activities as a business in order to establish and achieve short- and           long- term goals. A business plan allows real estate Developers to not      only identify objectives, but also determine a viable course of action           toward their attainment.

          A business plan also allows Developers to visualize bigger picture,           which helps maintain focus on the goals rather than on minor                   setbacks. Real Estate investing can be complicated and demanding, a     solid plan can keep Developers organized and on task.

5.  Problem Solving 

       Developing a successful project takes tremendous skill to navigate   through all the speed bumps and roadblocks along the way. Developers know how to solve problems, and they seem to understand that there is usually more than one solution to a problem.

    Creative site planning, finding solutions to zoning issues, dealing with    adjacent land owners and finding ways to come in both on time and  under budget are all examples of the problem-solving skills a developer    must have.

6.  Know Their Markets

       Effective real estate developer should acquire an in-depth knowledge        of his selected market(s). More he understands a particular market,           qualified he or she will be to make sound business decisions.

       Keeping abreast of current trends, including any changes in consumer      spending habits, their financial capacities, mortgage rates,         unemployment rate, to name a few, enables savvy real estate           investors to acknowledge current conditions, and plan for the future.

       Being familiar with specific markets allows him to predict when trends       are going to change, creating potentially beneficial opportunities for           the prepared investor.

7.  Maintain High Ethical Standards

       Realtors are supposed to act according to a code of ethics and                 standards of practice policy. Real estate Developers, however, unless        associated with real estate organizations, not usually maintain a           requisite degree of ethics in their business practices.

       Even though it would be easy to take advantage of this situation, most      successful real estate Developers, and especially those who remain in    the business for the long, maintain high ethical standards.

       In the case of Developer lacking in ethics, the consequences can be        damaging. Effective Real Estate Developers know it is better to      conduct fair business, rather than seeing what they can take away.

8.  Creativity: 

      

        Every development project starts with an idea, either for a particular        use on particular site or a vision for what a community might need.          Developers are creative individuals who seem to always be looking            ahead at what demand might exist in the future.

       Successful developers push the envelope with exciting designs, new          building materials and cutting-edge construction technology. This             creativity is what brought us skyscrapers, town centers and all the places    we now  call work place and home.

9.      Strive to be Good Customer Service Representatives

       Referrals generate a sizable portion of a Developer’s business,  so it is       critical that Developers treats others with respect. This includes           business partners, associates, clients, renters and anyone with whom       he has a business relationship. Effective Developers are good customer  service representatives by paying attention to detail, listening and        responding to complaints and concerns, and representing their business     in a positive and professional manner.

10.   Stay Educated

       As with any business, it is imperative to stay up to date with the laws,      regulations, terminologies and trends that form the basis of Developer’s business. Keeping updated does require additional work,but can be viewed as an investment for the future of business.

     Developers don’t stay updated or educated risk not only losing                 momentum in their businesses, but also legal ramifications if laws are        ignored or broken due to lack of knowledge. When it pertains to law,         ignorance is no excuse. Successful Developers take out time and make      the effort to stay educated, adapting to any regulatory changes or        economic trends.

11.  Patience 

     Learning from my own personal failed experiment, I’m convinced          that you’re either a patient person or you’re not.  While you can adopt a    mindset of greater patience. Development is a years-long process,        sometimes just the sell-out or leasing period is years long, and if you        are not able to comfortably accept that project of any scale will most        likely consume at-least half a decade of your life or may be more, then     you should steer clear of the development as a career path. Unless you     will be OK pursuing micro level projects, which is fine, but       economically limiting.

12.   Willingness to listen, engage and invest in community

    If you are too dense, egotistical, self-centered or arrogant & actively listen to what others have to say about you or your project, then you might just have a remarkably short career in  development.

   Successful developers listen, because they believe from their core that the project is not for them, but for end users and the neighbors, and success is more likely if they take care of them.  

13.  Passion 

       Development is a thousand-step, thousand-decision endeavor, and           many of these steps and decisions come with challenging barriers. If         you truly love the thought of developing the project and not just the         thought of making money from it, you will have what it takes to get           success. It is hard to persist without passion fueling your spirit every          morning.

14.  Willingness to delegate and outsource. 

         Developing a project of scale is bigger than the capacity of any one           man or woman. It must be a team effort if it is to go well.  Even if             you’re an architect, attorney and have your own capital, you will still          have to engage others to assist in the project.  

       You’d be crazy not to, unless you literally are happy never sleeping more    than 3 hours a night and not doing anything other than working.

15.  A sense of humor. 

       Business can be really tough and frustrating.  You need to be able to          laugh off at smaller things, or the larger things will drive you to the          brink.

Conclusion

    Despite perception that real estate development is an easy way to wealth, it is in fact a challenging business requiring expertise, planning and focus. In addition, because the business revolves around people, benefit come over the years by operating with integrity and by showing respect to associates and clients.

    Tough it may be relatively simple to enjoy short-lived profits, developing a viable real estate investing business that can last for the long-term requires excellent skill and effort. Whether focusing on apartment buildings or commercial property, highly effective real estate Developers share these  essential habits.