What Makes A Successful Real Estate Developer?

What Makes A Successful Real Estate Developer?

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Real estate developers can often be put into one of two categories: successful and, well, not so successful. Behind every success story is a story about failing, however. Not every successful real estate developer has always enjoyed things going their way.

Mistakes have been made, lessons learned, and what would be a discouragement for some has been transformed into fuel to drive them to eventual success. While knowing how to manage a team and to work the latest commercial real estate tools certainly help, there is more to being a success.

Below, we take a look at a few of the key ingredients which go into being a successful real estate developer.

A sound mind for investing

First things first: a real estate developer can be completely put out of business by one poor decision. During the global financial crash, many a successful real estate developers lost their business by failing to react in the appropriate manner.

The ones who made it through relatively unscathed – or at least with their businesses still intact – rolled with the punches, didn’t panic and remained patient. This reaction to pressure and changing circumstances are key skills in a time of crisis.

Investing requires such an in-depth knowledge of so many areas. This expertise – coupled with the right attitude and aptitude – give a real estate investor a much better chance of being a success.

Leadership and relationship management

The founding, developing, and (perhaps most importantly) maintaining of key relationships are integral to a real estate developer’s success. Without the assistance of others who are leaders in their field,  problems may arise.

Succesful real estate developers strike up lasting business relationships with banks, financiers, architects and designers, building firms, and even politicians. With the help of these leaders in their respective fields, the real estate developer’s vision is easier to actualize.

Leadership and inspiring trust in those around them are important to a real estate developer. They allow them to conceive an idea and bring it into the physical realm.

An expert understanding of markets

Without an understanding of markets, a real estate developer is at the very real risk of making poor decisions. While a poor decision for a chef may see one below-par meal cooked, a poor decision for a real estate developer could be cataclysmic.

With this in mind, a real estate developer will ruminate over even the most minuscule of factors before making a decision. The smallest details will be assessed, as they weigh up the potential for success and their chances of seeing a profitable return on their investments.

An expert understanding of markets is integral for a real estate developer. Whereas the average man on the street would have little or no knowledge of even the slightest change in an area’s potential, a real estate developer will be keeping track of everything. This can often be the margin between success and failure.

The next time you walk past that beautiful apartment block or shiny development, spare a thought for the mind that conceived it.