Real estate development is a risky business. It can lead to dizzying returns or devastating losses. Nonetheless, it’s an essential part of the real estate industry. After all, what are real estate investors going to invest in if somebody doesn’t develop property first?
Whether you are looking to become a real estate developer or already are one and are looking to improve, there are some skills you need to have. The following are just a few of the top skills that real estate developers should possess.
The first skill real estate developers should cultivate is the ability to see opportunities where others don’t. After all, your job is to see an empty plot of land or underutilized property and turn it into something profitable. A key component of this is recognizing trends in other markets and seeing how that can fit in your property. Surround yourself with experts in various industries to verify trends and decide what type of property should be developed with a given plot or building. Real estate development is all about taking educated risks- and part of seeing the right opportunities is verifying your entrepreneurial instincts with experts.
Good real estate developers possess top-notch interpersonal and communication skills. They can relate to people from all walks of life with ease and build relationships with them. After all, developers have to work with various people in the real estate industry- buyers, sellers, construction professionals, bankers, consultants, and more- to develop a property. A developer acts as a leader on real estate development projects, pulling all these people together to create something new.
If real estate development were a smooth and easy process, everyone would be doing it. Unfortunately, there are many problems and roadblocks in making a property great, and developers need to have excellent problem-solving skills. With some creativity, you can find multiple solutions to any one problem, and picking the best one for you is a big decision in and of itself. Zoning issues, issues with adjacent landowners, and coming in on time and under budget are just some of the common problems real estate developers face.