How to Become a Real Estate Developer in 8 Steps

A real estate developer is someone who develops a building project from the ground up or renovates an existing property. These developments include residential real estate, commercial real estate, and even industrial real estate. Projects could be as small as building a single-family home or as large as redeveloping an entire distressed community.

1. Know Your Area
2. Pinpoint Your Niche
3. Learn the Rules
4. Protect Yourself
5. Create Your Team
6. Find Investors
7. Get to Work
8. Learn How to Market

Some real estate developers did receive a formal education in a specific area, becoming a commercial real estate broker, general contractor, or residential real estate agent, all of which require a specific education and licensing process or, they may have worked for a firm that specializes in construction management or property management. Having experience in diverse areas of the real estate market from lathering on plaster to leasing can certainly help you be the competent manager of an investment property being built from the ground up.

• What Does a Real Estate Developer Do?

The exact ins and outs of what a real estate developer does will vary project by project. Essentially, real estate developers are responsible for planning, financing, and executing real estate projects. While they may not be on-site putting up drywall or drafting floorplans, they are the brain of the operation and are responsible for making sure all its parts move effectively toward the end goal.

In the planning phase, a real estate developer is responsible for finding land or locating property. Architectural plans will need to be drafted up, both for new building projects and renovating existing property. Permits will need to be secured so the project can move forward without a hitch.

In the financing phase, a real estate developer will need to lock down some funding. They may be putting in their own funds. They may search for funding from other sources, such as real estate investors. These investors might be within their professional network or even total strangers. Of course, a good lawyer should draft up a contract and create some legal scaffolding that protects everyone’s interests. In the execution phase, once the planning has been done and the financing locked down, the project will move forward. Contracts will need to be set up with the construction crews, which can become a tricky enterprise on larger building projects with diverse teams. Oftentimes this is the most difficult part of real estate development, and the part that puts a project behind schedule, so the best real estate developers are also competent on-the-ground managers.

Topics: Real Estate, Business

Work cited: David Gass, December 2019

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