If your interests lie in the built world, what better industry to pour yourself into than the real estate development and construction industry. The feeling of looking back at something you’ve been instrumental in creating–which people use and benefit from every day–is priceless. If you’re ready to dive in, there’s a fair amount to learn. What you need to know about real estate development and construction is that it takes time, determination, and an appetite for risk. And once you’ve earned your stripes, then you’re on the road to growing your own portfolio.
How to Develop Real Estate
A real estate developer is the person who pulls together a team of professionals who work together to research, finance, design, plan, build, manage, market and sell a real estate development. If it were an uncomplicated process, everyone would be doing it, but if you’re self-motivated and your organisational skills are up to scratch, you’ll catch on. The first phase of a real estate development project is rooted in research; the second phase is building; the final phase is about saying goodbye to the property.
- Write a property development business plan
- Carry out due diligence and conduct a feasibility study
- Find the right property or land to develop
- Get funding
- Put together a team of industry experts
- Design the building and get the design approved by the local council
- Plan the project
- Break ground
- Manage the construction
- Manage the project budget and timeline
- Market the property
- Consult with real estate agents where necessary
- Sell or rent out the property
The Wonderful World of Construction
While the term real estate development encapsulates a range of functions within the industry, construction specifically addresses the building aspect of real estate. Construction is an art form that brings together engineering, project management, people management. It requires the ability to translate designs accurately and physically recreate them. To carry out a successful real estate development project, the construction team have to build to code, follow regulations, stick to a budget, and deliver on time. With so much money involved, it’s essential to ensure every aspect of the preconstruction preparation is completed to the highest standard. Without thorough preparation, you are more likely to run into problems during the construction phase. While there’s always a chance that something will go wrong, you are in a better position to mitigate risks with as much preparation as possible.
The construction process:
- Conceptualisation, design, planning, and cost estimates
- Securing building permits
- Breaking ground which involves levelling land, excavating, preparing plumbing, sewerage, and electrical systems.
- Laying the foundations
- Building the frame, walls, roof trusses, window frames and door frames; this stage is complete once a qualified building surveyor has approved the construction
- Fitting windows, doors, gutters, the roof, the walls
- Plumbing and electrical conduits are installed
- Fitment of internal fixtures such as ceilings, skirting boards, interior doors, stairs, the kitchen, and waterproofing
- Walls are painted, shelves, tiles, cornices, taps, shower screens, and final electrical and plumbing finishes are fitted.
- A quality management inspection is conducted
- The builder conducts a practical completion inspection
With many steps involved in real estate development and construction, it’s best not to take any chances. With Archistar property development software, you can research, conceptualise, and design your next real estate development. For a free software demonstration, get in touch with us today.