Real estate development can be a rewarding career. Real estate developers can help contribute to revitalizing residential, commercial and recreational sites for a community which is why local community leaders and government hire developers. With this in mind, real estate developing can be very beneficial to those who are skilled and knowledgeable in this industry. However, for those just starting out, costs involved in developing can be high and most people starting out in this industry do not have the starting capital to get off the ground. For potential real estate lenders and investors that you may look to for help in lending you the funds to get your development business going, it is important to show that you know the business and show your relevant experience. Some ideas to help you gain experience would be to shadow a property developer that has been in the business for a while, taking some apprenticeship program, or volunteering to be involved on a development project within the community.
Part of gaining experience would be to research your own project and putting together the necessary budget, time frame and plans to complete the project. It is important to include the wages, insurance, the price of the land, the materials, and any other costs for developing the project. In a real estate business plan, present your calculations to the lender so they can see what risks and returns they may expect. Reviewing the financial specifications and requirements will give the lender a sense of how much or less they may be risking on the project.
It may also be beneficial to check to see if there areany property development grants or loans. With a high demand for eco-friendly environments, private and public sector lenders and investors are looking for properties with these qualities. Once you have presented to the lender of your choice, you will also prepare and submit your loan application. Since each lender is different, be sure to find out what documentation you need to submit to the lender in order to process your application in a timely manner.
Stanley Xu a real estate expert in developing properties. As the founder and Chief Executive Officer of The Longwell Company, a real estate development firm, Stanley is very familiar with the process of obtaining loans for property development projects. The Longwell Company is based out of Bellevue, Washington. Stanley has built a solid strategy for his real estate development projects and has been successful in creating a high return on investment on his projects.