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Every real estate investor, regardless of their investment strategy. Is looking for one thing – opportunity.
Real estate developers create that opportunity.
Are you a skilled researcher? Are you capable of developing and executing long-term plans? Once you have a goal in sight, can you reliably see it through until the end? If you said yes to these questions you may want to consider a career as a real estate developer.
Of course, you may be wondering how to become a real estate developer and apply your skills to the larger world of real estate investing. Fortunately for you, my team and I have worked with countless developers and would like to share the tips and tricks we have learned with you.
Well, before anything else, the first thing you will need in order to learn how to become a real estate developer is financing. After all, these developments are not cheap to build and create. That is why our commercial financing team is ready to help you kick off your developments by helping you connect with the best available lending options.
To get started today, all you need to do is book a free strategy call with us today and we will guide you from there.
What is a Real Estate Developer
Before you can fully understand how to become a real estate developer, it is important to understand what a developer is and the role that they play in the real estate market.
Real estate developers or individuals or companies who manage the development of new properties from start to finish. As well, they may also oversee the redevelopment of existing properties as they are updated for new or revitalized use.
This job begins in the planning period, working alongside contractors and community leaders to find prime locations for new properties to develop based on the current wants and needs of the community combined which what will introduce the most value into the area.
For example, in today’s market there is a strong push for new housing to be built in order to address the current supply issues that are facing Canada’s rising population.
The developer will then oversee the financing, construction and sometimes even the management of the property. During this time they need to ensure properties are properly zoned, permits are in order and construction is being completed on-budget and up to code.
Discover How To Apply For An Investment Property Mortgages With This Step By Step Guide
How to Become a Real Estate Developer
While there are no concrete requirements for you to become a real estate developer, there are certain qualifications and skills that can help you become much more qualified for the job and increase your chances of finding long-lasting success.
1 – Do Your Research
In order to be a good real estate developer, you need to understand the market and its demands. That means doing the research. You should familiarize yourself with market trends and the key factors that influence different varieties of real estate investments. This includes building codes, expected ROI on different properties, and the key aspects of various properties that make them different to buyers, and renters.
There are many places you are capable of doing this. In fact, right here on the Canadian Real Estate Network, we currently have over 1500 articles published to help you grow and expand your knowledge of real estate investing and beyond.
There are also post-secondary courses where you can study to earn a degree in real estate development. While this is not always required, especially if you are planning to become an independent developer, but the education will provide you with valuable information that can help you expand your knowledge.
2 – Gain Real Estate Experience and Build Your Qualifications
You cannot learn how to become a real estate developer overnight, there are far too many intricate details that go into the practical, legal, and theoretical aspects of the role for someone to start doing it overnight. So, it is important that you take the time to gain the appropriate experience and qualifications so that you can adequately prepare for the job.
Many real estate developers start out a realtors or real estate investors. Through this experience, they are capable of receiving practical experience covering each aspect of the industry. While you are gathering this experience it can help to gain experience in different aspects of the market so you can learn the difference between the needs of a new construction and a rehabbed property, or commercial vs residential real estate.
Alternatively, many real estate developers pursue formal educations in real estate and urban planning in order to set themselves up for long-term success.
In addition, as you gain experience and increase the number of qualifications you have, people are more likely to take you seriously as a developer.
3 – Expand Your Network
Real estate developers need to be well connected. Otherwise they are not going to succeed in the industry. Building strong working relationships with realtors, contractors, construction companies and real estate lawyers can help you find the best opportunities for potential developments as well as provide you with key up-to-date insight on the latest industry news as it happens.
Building your network can also make it easier to find team members to hire on for each of your developments. Often, providing recurring work to contractors and construction companies can increase your negotiating power and allow you to receive better rates on the same high-quality work.
Networking is easily one of the most important skills for you to learn if you are going to discover how to become a real estate developer.
How to Become a Real Estate Developer with No Money
It can be hard to imagine how to become a real estate developer if you do not have a significant amount of money on hand to get the project started. However, there are options available for you to consider when you partner with a commercial mortgage broker.
To explore financing options and learn how to become a real estate developer without spending any of your own funds, book a strategy call with our commercial financing team today and we will help you find the best available solution.
4 – Establish a Your Goals and Development Plan
One of the biggest struggles you may face while learning how to become a real estate developer is knowing where to start. That is why you need to create a clear set of short and long-term goals that you plan to follow in order to get the ball rolling.
These short-term goals can include calling a certain number of landowners each week to attempt to buy their property or completing a certain stage of development on a project before a specified date. Long-term you can aim to accomplish things such as building a certain number of residential units over a set period or completing a large-scale project such as a new sports arena or shopping centre.
These goals should refer back to your development plan. This plan will highlight certain geographic regions you would like to focus on or the type of real estate you want to construct.
5 – Secure the Required Financing
Real estate development is an expensive endeavour, so you need to make sure you are securing the best financing available for your projects. Otherwise you may run the risk of running out of funds or being left with difficult to manage payments at excessively high interest rates.
Fortunately for you, at LendCity we have a commercial financing department who is well equipped to help you gather the financing you need for your real estate developments Canada-wide. This way no matter what stage you are in your career, you can be confident you have been matched up with the best lender for you.
If you would like to get started with our team, or you would like to hear more about how our commercial department could help you take your investments to the next level, visit us at LendCity.ca or give us a call at 519-960-0370. You can also book a free strategy call at the link below.