As a developer, your role is to take a project from the conception of an idea, through all stages of design and approval, financing, construction and marketing, and finally, the lease or sale of the project.
Successful real estate developers are a bit like movie producers. They assemble a team of highly talented people and skilfully lead them to develop a profitable outcome. Developers need to be proactive and make things happen.
They must also be creative, flexible, and adaptable in getting your project through the maze of development, not to mention all the red tape involved with municipal applications, zoning restrictions, and the like.
As a developer, you need to work hard, be patient, stay focused, and have a burning determination to succeed. There are a few key basics that you will need to undertake as you progress down the path to becoming a successful developer.
You should:
– Educate yourself – as you are doing today
– Take your time – as you will learn to do
– Do the research – as we will teach you
As a developer, it is your responsibility to ensure that the risk you take is equal to the potential reward in the end. That is, the higher the risk, the higher the reward you should aim to achieve.
Establish the right structure
The first is the first. Before you begin the development process, you must decide whether to keep or sell the property. This is before you even start looking for a site.
Different structures can lead to different tax outcomes, be it income tax, capital gains tax, or GST implications.
It is important that you seek the advice of your tax specialist and legal advisor on what type of structure is best for you. Many times I have seen successful developers complete a project only to have most of the profits returned to the ATO! A little time well spent at the beginning can save you a lot of money in the end.
YOU NEED TO BUILD YOUR “ONE TEAM”
A strong, experienced and responsive team of professionals is essential to help you optimize your development opportunities. It is also important to have the right team for each of the particular projects you undertake.
Depending on the complexity of a project, some or all of the following team members may be required;
– Real Estate Agents
– Lawyers
– Town planners and city planners
– Real estate market researchers
– Engineers – civil, structural, traffic, acoustic, environmental specialists
– Architects, designers or draftsmen
– Landscape architects
– Interior designers
– Financial
– Construction Contractors
– Project marketing specialists
– Development Managers
– Project managers
– site managers
