How do you navigate the real estate development process?

1 Assess the feasibility

The first phase of the real estate development process is to assess the feasibility of your project idea. This involves conducting market research, identifying potential sites, analyzing the financial viability, and evaluating the risks and opportunities. You need to determine the highest and best use of the land or building, the demand and supply of the product type, the costs and revenues of the project, and the legal and regulatory requirements. A feasibility study will help you decide whether to proceed with the project or not.

2 Acquire the site

The second phase of the real estate development process is to acquire the site for your project. This involves negotiating the terms and conditions of the purchase, conducting due diligence, securing financing, and closing the deal. You need to have a clear vision of your project goals, a strong team of professionals, and a flexible strategy to deal with any issues that may arise during the acquisition process. You also need to protect your interests and rights by using appropriate contracts, contingencies, and escrows.

3 Plan and design

The third phase of the real estate development process is to plan and design your project. This involves creating a concept, obtaining approvals and permits, hiring architects and engineers, and finalizing the specifications and drawings. You need to balance the aesthetic, functional, and technical aspects of your project, as well as the environmental, social, and economic impacts. You also need to coordinate with various stakeholders, such as public authorities, utilities, contractors, and consultants, and manage the changes and revisions that may occur along the way.

4 Construct and deliver

The fourth phase of the real estate development process is to construct and deliver your project. This involves selecting and contracting the builders, overseeing the construction activities, monitoring the quality and progress, and resolving any problems or disputes that may arise. You need to have a detailed schedule, budget, and scope of work, as well as a robust communication and reporting system. You also need to ensure the safety and compliance of the site, the satisfaction and retention of the tenants or buyers, and the smooth transition to the operation and maintenance stage.

5 Operate and maintain

The fifth phase of the real estate development process is to operate and maintain your project. This involves managing the property, leasing the units, collecting the rents, paying the expenses, and providing the services. You need to have a competent property manager, a loyal staff, and a happy customer base. You also need to optimize the performance and profitability of your project, as well as the sustainability and durability of your asset.

6 Exit or hold

The sixth and final phase of the real estate development process is to exit or hold your project. This involves deciding whether to sell or keep your project, evaluating the market conditions and timing, and executing the exit strategy or holding plan. You need to have a clear exit or hold criteria, a realistic valuation, and a strong negotiation and closing skills. You also need to consider the tax implications, the reinvestment opportunities, and the long-term goals of your project and portfolio.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?