Many people want to be professionals, but very few are willing to go into debt or take risks associated with being an entrepreneur. One way to get your foot in the door without that much risk is by working for someone else — as a real estate developer.
Developers create and profit from new hoi hup realty and sunway developments in ownership by developing, acquiring, managing and selling single-family homes, apartment units, commercial spaces, or land parcels. The industry has grown exponentially over the last 5 decades and its popularity continues to rise as many more people realize that investing this way is a guaranteed way of making money without risking your own personal wealth.
One of the most common pitfalls for newcomers to professional real estate development is that they consider themselves in the construction business. In other words, they envision themselves in a hard hat and steel-toed boots building homes, while they lose money on each home they build. This is far from the truth, and is a huge mistake that could compromise your future success as a developer.
As with any other business venture, your primary source of revenue needs to be from the sale of your product or service — not from spending time building things yourself. In fact, developers who are also involved in construction actually take a hit on sales because they have to pay to hire licensed contractors to do the work for them.
Developers make their money when the project is complete, and a new home is sold or an apartment unit is rented out. For example, let’s say you want to build a shopping mall in Oakton, Virginia (a suburb of Washington D.C.) with multi-level parking and high-end amenities that appeal to wealthy Washington politicians and businessmen. You would buy the land from its owner and then begin designing and constructing the new commercial space that you would lease or sell as part of your development portfolio.
As you can see, your income depends on the real estate development — not the building process. There is a big difference between construction and development. You can make good money in real estate without getting your hands dirty or worrying about getting sued for building code violations. Now that you know what it takes, let’s look at some of the best ways to become a professional real estate developer.
One way to make it as a developer is by purchasing land yourself and then looking for a developer to build units on your land for you. Then, all you have to do is lease or sell those units on a profit-making basis and watch your income grow exponentially over time.
