While there are many successful real estate developers, the fact is it takes many factors to find success in this very competitive field. However, for those who do succeed, they have much to share with others seeking similar success. To find out what it takes to become a success in real estate development, here are some lessons learned by a powerful New York developer.
Get an Education
While many developers do quite well with no formal education, most agree that obtaining a Bachelor’s degree in finance or economics makes the path to riches much easier. In fact, many people choose to earn Master’s degrees in these fields or become Certified Public Accountants in order to gain a greater understanding of the intricacies involved in real estate development.
Gain Some Experience
Just like any other career, it’s always a good idea to gain as much experience as possible prior to jumping into real estate development. Working for an investment bank or real estate firm prior to venturing out on your own can be of tremendous help, and can help future developers learn not only the business side of development, but also how to be savvy when dealing with others in negotiations.
Acquire Adequate Funding
Whether it’s savings accumulated for several years or loans obtained from family, friends, or other sources, having adequate funding from the beginning can get any real estate development off to the right start. Most experienced developers agree that if they could do one thing over again, they would pay more attention to having more money at the beginning of their careers. In addition, they recommend exploring various sources of financing for projects, such as bank loans or construction companies.
Start Small, Think Big
One of the biggest mistakes novice real estate developers make is trying to take on projects that are too big for them at the beginning. Instead, starting with smaller projects early on works best, since it allows a person to gain valuable experience and build confidence by completing several smaller development projects. While doing these projects, it also allows a beginner to build up a network of people in construction, banking, law, and other fields with whom they can rely on for advice and guidance in the years ahead.
By learning from these lessons learned by those already in the business, beginning real estate developers can have a greater chance of building successful careers.
Roman Temkin is a real estate developer from NYC.