How to Become a Successful Real Estate Developer By Rhiannon Williamson Sep 5, 2005, 01:22

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How to Become a Successful Real Estate Developer

Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on…

1) Do Your Location Homework – did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It’s true - whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.

Take the necessary time to learn all about a town or city you’re considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. If there are inner-city redevelopment projects planned examine the real estate market in the immediate vicinity, if there are areas that are booming right now examine the immediate neighbouring areas for their potential for future prices rises for example.

Don’t follow the crowd – have the confidence to buck the trend and get ahead of the curve by positioning yourself in a market that is about to boom rather than in one that has already blossomed.

2) Know What You Can Afford – While it can pay to sometimes speculate never be tempted to jeopardise your own home. Work out your finances and be ruthlessly strict about what you can and cannot afford as a down payment, for mortgage costs and for the renovation and redevelopment of your next real estate investment. Only proceed within the confines of your tightly allocated budget and do not be tempted to over extend yourself particularly if competition in the property market is tough and the market is slow or stagnant.

3) Identify Your Target Market – Having identified your next location for property investment identify the types of people who buy into renovated properties in that location. Know who your target market are going to be and what they are likely to look for in a property in that location. If for example you’re examining inner-city spaces you might identify that your buyers will be young single professionals and that the ideal property type for these people will be luxury low maintenance apartments – seek out suitable properties with the potential for redevelopment into luxury low maintenance apartments and you will fulfil your target market’s brief…seek out large houses with substantial gardens in the area and you will have totally missed the market and potentially created a property that will not sell!

4) Renovation Not Rebuild – Know your budget limits and your personal skill restrictions. Do not consider taking on a property that is in need of a complete structural overhaul when your budget is tight or you do not personally have the time, skills or inclination to do the structural work yourself. Be realistic about what you and your budget can achieve and seek properties that fulfil that brief. Pay to have an independent and complete survey done on any property you are seriously considering buying before making a down payment to ensure that there are no hidden surprises waiting for you beneath the floorboards to eat up your budget in its entirety.

5) Manage Your Budget – With your survey in hand you can approach builders for quotations and seek out prices for fixtures, fittings, finishings and furnishings. Take the prices quoted and sourced and build your budget. Factor in ongoing mortgage and service costs and labour costs as well as your findings and structure and allocate your money accordingly. Watch every single spend and be ruthlessly strict with yourself and your builder. If at all possible have your builder commit to a contract with fixed finish dates and fees and stay on top of every single penny or cent every single day. At the end of each week tally up your outgoings and expenditure and ensure you’re not exceeding your budget. If you’re overspending rein it in or you will have to shave it off other areas of the development. Remember never to scrimp and save on finishing touches and always give yourself a realistic fall back fund in case of emergencies.

6) Appeal To The Widest Market – Forget putting your personal stamp on any property you develop – YOU are not going to be living in the property! You should already have identified your target market which will give you a good idea of the level and quality of finish expected, now meet those expectations without adding your own personal taste into the equation. By appealing to the widest market or the lowest common denominator your property will be attractive to the majority of buyers making it faster and easier to sell on and profit from.

7) Make Friends With A Real Estate Agent – Your greatest ally when developing property will be your real estate agent. Make friends with these guys and you will build a beautiful and successful symbiotic relationship in which you both profit to the maximum! Real estate agents are a fountain of untapped knowledge about the local market, who is looking for what property in which area, which additional features cost little to add but which push up the asking price and what a buyer expects from your particular property type. Get the facts from your real estate agent and then apply their advice. You will create a property they can market for top dollar and to the widest market – you will make more profit and they will make a bigger commission ensuring a beautiful and lasting friendship!

Finally, remember that when you’ve bought, renovated and sold on you’ll be looking for that next property opportunity and any real estate agent who you’ve worked well with will be on the hunt for suitable real estate for your next investment making any subsequent purchases that much easier to source.

Rhiannon Williamson is a freelance writer whose many articles about international property and investing in real estate abroad have appeared in publications around the world. Visit this link to read her latest articles about Property in Dubai

Need information on Dubai Freehold Properties? here are links worth a click!
 

• Nakheel: The Landmark of Property Developments in Dubai - Dubai Freehold Properties - Nakheel LLC is the uniquely focused property development company behind a variety of new landmark developments in Dubai. Its goal is to ultimately implement unique, iconic and genuine real estate propert in Dubai that have been created after detailed planning and research.

• Emaar Properties - Dubai Freehold Properties - All the information you need about the Emaar Properties. Listing of all Emaar key property projects in Dubai.

• Dubai Festival City - Dubai Freehold Properties - Dubai Festival City is a unique Festival Centre'mixed-use real estate project being developed in Dubai, United Arab Emirates. Spanning approximately 1,600 acres, the project is set to transform the shopping, living, leisure and working lifestyles in Dubai. When completed, upwards of 75,000 people will live, work and play within the development.

• The Lost City - Dubai Freehold Properties - Nakheel announces the launch of The Lost City. A Unique property development to offer investors a chance to own a piece of the old “Lost Cities” of the world in Dubai.

• Nakheel Falcon Tower at Jumeirah Lake Towers - Dubai Freehold Properties - Nakheel, the Middle East region’s premiere property developer has announced the launch of ‘Nakheel Falcon Tower’, an exclusive high-rise residential waterfront development at Jumeirah Lake Towers. The Nakheel Falcon Tower’s one, two and three bedroom apartments totalling 208 units will go on sale from tomorrow (Wednesday, September 29, 2004).

• Nakheel Flamingo at Jumeirah Lake Towers - Dubai Freehold Properties - Nakheel Flamingo will be a spectacular addition to the other Nakheel owned properties in Jumeirah Lake Towers development with 254- one, two and three bedroom apartments giving investors an unparalleled lifestyle in the trendiest district of Dubai, Jumeirah.

• Damac Park Towers at DIFC - Dubai Freehold Properties - Damac Park Towers at DIFC - A two tower residential project in the heart of (Dubai International Financial Centre) DIFC with freehold facility for UAE nationals and expatriates.

• DAMAC Lake View - Dubai Freehold Properties - DAMAC Lake View is an exclusive 40-storey waterfront residential property at Jumeirah Lake Towers, offering freehold property to all nationalities.

• DAMAC Palm Springs - Dubai Freehold Properties - Palm Springs - Freehold Apartments with 100% ownership in Dubai. The project will comprise a diverse range of commercial, business, retail, leisure, parking and lifestyle facilities, providing an outstanding home that offers the quality and services of a world-class hotel - a resort destination in its own right.

• DAMAC Lake Terrace - Dubai Freehold Properties - DAMAC Lake Terrace - Lake Terrace is situated in close proximity to some of Dubai's landmark sporting, leisure and recreational facilities.

• Damac Palm Terrace - Dubai Freehold Properties - Damac Palm Terrace - Dubai's Damac Group is to develop a 12-storey, 130-apartment residential tower on The Palm, Jumeirah, Dubai. The USD50m Palm Terrace will be on the trunk of the world's largest man-made island, The Palm Jumeirah.

• DAMAC: The Waves - Dubai Freehold Properties - DAMAC: The Waves - DAMAC presents The Waves, a 600,000 square foot, two-tower residential real estate project on the Dubai Marina with freehold property for UAE nationals and expatriates.

• DAMAC Marina Terrace - Dubai Freehold Properties - DAMAC Marina Terrace - Marina Terrace, DAMAC’s first luxury property development in Dubai. Every apartment is designed to maximize the panoramic views from Dubai Marina's finest waterfront location. As a resident of Marina Terrace you will have the privilege of having only the finest of leisure offered to you.

• The World - Dubai Freehold Properties - The World. The World is Nakheel’s $3 billion project, which has recently seen Eurasian and North American islands reclaimed from a depth of -16 m below the water’s surface. Nakheel Corporation unveiled the concept plans to construct another offshore island development just off the coast of Dubai.

• The Palm Jumeirah - Dubai Freehold Properties - The Palm Jumeirah. The Palm Jumeirah is a man-made island being developed off the shores of Dubai in the United Arab Emirates, covers an area of 7 million square meters and extends 6.5 kilometres into the Arabian Gulf.

• Atlantis, The Palm in Dubai - Dubai Freehold Properties - Atlantis, The Palm in Dubai. Atlantis, The Palm will be located at the center of The Palm, Jumeirah, a $1.5 billion land reclamation project in Dubai, United Arab Emirates.

• The Palm, Jebel Ali - Dubai Freehold Properties - The Palm Jebel Ali is an entertainment destination for both adults and children, which caters to both residents and tourists. The island will also be 50% larger than The Palm Jumeirah, and will include six marinas, a 'Sea Village', a water theme park and water homes built on stilts between the fronds and the crescent.

• Nakheel: Jumeirah Islands - Dubai Freehold Properties - Jumeirah Islands. Jumeirah Islands - An exciting new residential property edevelopment in Dubai comprising of a self-contained community of 50 man-made islands shaped in Dubai and designed on 300 hectares of land. Crystal waterfalls, lush parks, walkway bridges, marinas and boathouses will enhance this residential community.

• International City - Unique property development - Dubai Freehold Properties - International City - Unique and iconic property development in Dubai.

• Nakheel: Dubai International City - Dubai Freehold Properties - Nakheel: Dubai International City. The International City project which was launched in November 2003 is yet another ambitious and practical project by Nakheel. The 800-hectare development is divided into six main areas, incorporating residential, commercial and retail buildings. Being developed as a world-class hub for international investors, traders and retailers in the Al Warsan area, just 12km from Dubai International Airport, International City will provide excellent business opportunities, superb tourist attractions and a variety of residential options with different country themes.

• Nakheel: Discovery Gardens - Dubai Freehold Properties - Nakheel: Discovery Gardens. Discovery Gardens is Nakheel's new residential concept and is situated at a new interchange along Sheikh Zayed Road located between interchanges five and six. The 420,000 square meter development is a pre-designed complex comprising of six themed communities styled in a variety of garden experiences. The development encompasses the area between Sheikh Zayed Road and Emirates Road. And as with all Nakheel properties, Discovery Gardens will be a self-contained unit with shopping amenities, a mosque, jogging and cycling trails, community swimming pools, football and tennis courts and close proximity to the new Gardens Shopping Mall.

• Jumeirah Lake Towers - Dubai Freehold Properties - Nakheel - Jumeirah Lake Towers. Jumeirah Lake Towers – A series of attractive Dubai residences, offices and retail outlets set in the midst of man-made lakes, waterways and beautifully manicured landscaping. Comprising of 15 clusters of three towers each, every tower is unique not just in the number of storeys, but in concept, design and feel representing the epitome of ultra-modern property development by Nakheel.

• The Garden View Villas - Dubai Freehold Properties - Nakheel - The Garden View Villas: Garden View Villas are free hold properties available for UAE nationals and expatriates. The villas are distinctive, built on gentle slopes on a hillside rising 60 meters from the ground providing a view of the sea and the desert. The Pan Arab architectural design forms and imposing visual backdrop to The Gardens.

• Emaar's Real Estate Projects - Dubai Freehold Properties - Emaar's Real Estate Projects. Listing of Emaar's real estate projects in Dubai.

• Burj Dubai - Dubai Freehold Properties - Emaar Properties - Burj Dubai. Dubai has unveiled plans for the world’s tallest building, the latest in the rush to aim for the altitude title. EMAAR Properties, the leading real-estate development company in the region, has released an artist’s impressions of the tower which is to be built at a location close to the prestigious Sheikh Zayed Road.

• The Emaar Towers - Dubai Freehold Properties - The Emaar Towers. Emaar Towers are the first freehold residential apartments in downtown Dubai.

• Emaar Arabian Ranches - Emaar Arabian Ranches. Arabian Ranches situated on the Emirates Road, stems from His Highness Sheikh Mohammed bin Rashid Al Maktoum's love of horses. Dubai's Crown Prince pledged his support with the donation of 200 of Arabia's finest horses.

• Emaar Emirates Living - Dubai Freehold Properties - Emaar Emirates Living. Emirates Living is a collection of Emaar neighbourhoods that stand for premier location and quality in Dubai.

• Emaar: Hattan - Emaar Properties: Hattan. Hattan offers outstanding luxury and executive homes in one of Dubai's most enviable locations. Situated alongside the renowned Emirates Golf Club, these single-family detached homes are among the most sought-after in Dubai, both in spaciousness and comfort.

• Emaar: The Greens - Dubai Freehold Properties - Emaar: The Greens. The Greens are residential apartments designed to provide more affordable housing options in Dubai. The Greens at Emirates Golf Course is well located, giving easy access to Dubai Internet City, Dubai Media City and the American University of Dubai.

• Emaar: The Springs - Dubai Freehold Properties - Emaar: The Springs. The Springs is an exclusive, gated community of elegant town houses surrounded by scenic waterways and lush landscaping. The Springs is in close proximity to Five Star beach hotels, Dubai Marina, the American university, Dubai Internet City and Media city.

• Emaar: The Lakes - Dubai Freehold Properties - Emaar: The Lakes. The Lakes offer beautiful homes for families of all sizes. Tranquil and scenic with waterways, parks and landscaped greenery, the Lakes set the tone for expatriate living in Dubai.

• Emaar: The Meadows - Dubai Freehold Properties - Emaar: The Meadows. This development is Emaar's premium villa project after Emirates Hills. The luxurious two-storey homes have proved particularly attractive to Dubai's young professionals. Luxury comes as standard in these communities with 24-hour security. Further phases of Meadows will be delivered in 2004-05. Prices start at less than AED1 million.

• Emaar: Emirates Hills - Dubai Freehold Properties - Emaar: Emirates Hills. Emirates Hills was originally established as the “Beverly Hills” of Dubai. Opulent villas, tranquil scenery, lakes and the world class Montgomerie Golf Course define this cosmopolitan community.

• Emaar: Street Of Dreams - Dubai Freehold Properties - Emaar: Street Of Dreams. Emaar’s Street of Dreams consists of nine distinct model homes displaying examples of villas from The Springs, The Meadows and Hattan. Being fully furnished and equipped, the project gives prospective buyers an impression of living within one of the communities’ homes.

• Emaar: Dubai Marina - Dubai Freehold Properties - Emaar: Dubai Marina. Dubai Marina is amongst the world's largest master planned waterfront development of its kind. Dubai Marina introduced the concept of pre-sold property to the United Arab Emirates, and elicited a strong response from both UAE nationals anxious to buy exclusive waterfront property, and expatriates seeking watertight investments.