The field of real estate development is exciting and very attractive. Lots of people want to get involved in it, not in the least because the top developers, people like Randy Benderson for instance, have made it big and are dealing with millions of dollars in transactions. At the same time, however, specialists like Randy warn people that the field is also volatile and not for the faint of heart. Yes, you can make it big, but you can lose it all just as quickly. Hence, he has developed a number of important tips that those who have dreams of becoming the next property tycoon can follow.
Necessary Skills for a Real Estate Developer
One of the reasons why the field of real estate development is seen as so attractive to so many people, is because there is no requirement to have any formal qualifications. That being said, it is important to have the right set of skills, many of which are best obtained by completing an education. Some of the key skills you need to learn to pick up include:
- The ability to read and understand the market. A good real estate developer snaps up a property for little money, redevelops it, and sells it for a profit. This is quite complex and requires a lot of patience – as well as considerable funds. A good developer will buy a property when the markets are right for it, and they will hold on to it until they can maximize their profit, no matter how long that takes. Finding the right time to buy and sell means understanding the markets.
- The ability to negotiate. A developer must be able to negotiate a price that is as low as possible when they buy, and as high as possible when they sell. This means they have to be able to walk away as well, if they can’t get the right deal out of it. People and communication skills are absolutely essential, therefore.
- The ability to get money together. Few people have enough funds when they first start out to buy a house mortgage-free. Additionally, property development is a risky field, which means many banks won’t want to touch you. Hence, you have to be able to get creative with where the money comes from. In fact, that is why most developers now do obtain a bachelor’s degree, often in a field of business.
- The ability to follow through. When you first get started in the world of property development, it is all too easy to give up. The work is hard and takes a long time, and it can be easy to become disheartened and to simply sell at a tiny profit and think of a different career. You must be able to persevere, no matter how much adversity comes your way.
If you feel you have these four key skills, then you may be able to make it in this field.