The Common Traits Of Successful Property Developers
Property development is an attractive investment opportunity for a lot of people. Just look at how many TV programs there are showing people flipping houses? There are many routes to becoming a property developer, and they don’t all require you to be well off financially, but they do require a few skills to raise your chances of success.
Here are some of the attributes that make a good property developer, no matter if it’s your first property project or your thousandth one.
Good Research Skills
Even the most experienced developers, with a lot of knowledge of the industry, know that they don’t know everything. There is a lot of information you need to access, including facts about the area, property laws, finance, building regulations.
Knowing where to access this information and using it to your advantage is a key skill for a property developer.
Attention To Detail
Renovating a property to lease or sell, requires a huge amount of work. Cutting corners is not a good business model, as it will catch up with you in the end and end up costing you more money.
For example, when you’re renovating kitchens and bathrooms, you want to use equipment and piping that is up to spec like watermarked plumbing valves and pipes. Cutting corners here could leave you with some hefty repair bills for water damage and new plumbing.
This level of detail will ensure that you get the absolute best price for your property and build your reputation as a quality developer or landlord.
Be Able To See The Big Picture
Your property development goals might be very big, snd a developer needs to be able to see the projects in development in relation to this bigger picture. It sounds like a brainer but when you’re involved on a granular level day-to-day, it can be difficult to step back and see everything as part of a bigger plan. That is why, when property developers become successful, they often step back from day-to-day involvement and look after the wider projects.
Having good quality materials and finishes doesn’t mean you have to pay top price for everything. Most developers are experts at finding good value goods and services or arranging contracts with suppliers in exchange for preferential pricing. It’s all part of having self-control. This is a vital trait of a property developer. When buying or bidding on properties, you need to be able to set yourself a limit and stick to it. An extra few thousand dollars here and there can really eat into your profit margins.
Choose your strategy, and stick to it.
Ability To Take Advice
In property development, as in life, it’s not always about knowing everything. Having the self-awareness to know that you need the expertise of others is needed. For a developer, this advice could be in the form of lawyers, financial advisers, and contractors. Once you have found people you respect and trust to give you good advice, the entire process will become a lot easier.
In the property market, making a decision too late can cost you money and opportunities. That’s why a decisive nature is an advantage. Being able to take in all of the information you’re being given, assess the situation, and make a decision quickly is a must. If you are extremely risk-averse, this may slow down your progress. Find a balance between decisiveness and cautiousness.
A major part of property development involves dealing with people on a daily basis. If you have an angry or offhand manner, people aren’t going to want to work for you and if they do, they certainly won’t be bending over backward to do their best. Learning to deal with people in a pleasant and professional way is key. That doesn’t mean that you can’t be firm with people when the situation calls for it.
There’s no one type of perfect property developer. The market has opened up so much over the past few decades, that many people are getting into the market on a relatively small scale and making a profit. It’s become a popular second business for many people.
But there are some traits that successful developers and landlords have in common and it is these traits that can be used to help you be successful both now and in the future. Whether you have them naturally, or they are something you have to learn, your experience developing will help shape them over time.
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