The Challenges and Rewards of Residential Real Estate Development
Blake Rubin’s career in real estate development started with commercial properties. His list of exclusive clientele consists mostly of business owners looking to build their portfolio through commercial property investments. Throughout his years as a property developer, Blake discovered that he found more fulfillment in developing residential real estate. The look on the faces of families that find the perfect home brings him immense joy. It is for this reason that he decided to put more focus on residential real estate development.
Whether for residential or commercial development, Blake Rubin has had to deal with numerous challenges that threaten the successful and timely completion of the projects. For anyone looking to build a career in real estate development, Blake has three words of advice: patience, determination, and dedication.
Basics of Residential Real Estate Development
With any real estate development project, you can either start with an empty lot and construct the structure from the ground up, or you can start with an existing structure and make improvements on it through renovation or rehabilitation. Also, you have to consider the needs of the community before embarking on your project. It is these needs that will determine the type and purpose of the structure.
In residential real estate development, the project usually entails building a multi-family complex, a row of houses, or a commercial structure that will lease or sell units for business use. Whatever the case may be, there are basic tasks that you need to fulfill as the developer of the property.
These include, but are not limited to, the following:
- Working with a real estate broker to find the right property to develop
- Finding a lender or investor to fund the project
- Putting together a team of professionals to work on the project from start to finish
- Serving as the project manager before, during, and after construction
The above list makes up only a small portion of what your job as the developer truly entails. Each of these tasks presents its own unique challenges, and in most cases, unexpected issues may arise even after you’ve signed on the dotted line. It is these unexpected events that you need to prepare for.
You may have come across construction projects that seem abandoned; decaying on the lot with no one doing anything about it. These projects may have gone through issues that made it more costly for the developer to continue, compared to ceasing construction altogether. If you do not wish for this to happen to your project, you must have exceptional anticipatory skills to address unforeseen events as they come.
Critical thinking and risk management are skills that you need to master to be successful in the career that you’ve chosen. There’s no saying what could happen when you’re already in the middle of construction, or right before you turn over the property to the new owner or lessee, but it’s always best to have a plan.