Whether this is your first time getting into property investment or you’re a veteran in the business, the ability to sniff out great opportunities is an essential skill to have. You need to be able to recognize hidden gems before others do, for example, finding a development project in an area that’ll soon be undergoing improvements.
As lucrative as property development is, it’ll only be worth it if you can find projects with the capacity to bring in more money than you’ll be paying for it. That’s why we had a chat with real estate veteran Ryan Hoggan, and this was how it went.
Yes, they do. But the money they make depends on the amount of work they’ve put into the project, the land’s potential, and how well they’re able to market it to potential buyers. Some land developers also double as property managers, which is another source of income. I know quite a number of them myself.
The problem with being a land developer is that you need a large sum in capital to get started, or you must be one hell of a marketer to convince people to invest in your project. If you already have that in the bag, then congratulations, you’ll be very rich.
The shortest answer is from developing properties, but the more straightforward answer is through other people’s money. Most land developers have the skill to find lucrative opportunities, but they usually don’t have the funds to develop those opportunities.
This is where investors come in. They provide the developers with enough capital to develop the project for a return in dividend and a fixed return in subsequent profit.
The developer for initiating the project also gets some percentage of the profit when the project is completed. In short, this is a win-win situation for both investors and developers.
Is it possible to become a land developer like “The Ryan Hoggan” without experience and money?
Frankly, it’s very unlikely. If you want to become a land developer, it’ll be best to get a start in something related to the field that’ll give you exposure first. You’ll find my interview with John at WunWun very useful if you’d like to start investing in real estate but don’t know how.
The truth is that a lot of things go on behind those lucrative projects you see on the internet. Project managers, financial analysts, and lawyers are busy doing the heavy lifting of what needs to be calculated and the documents that need to be available.
If you take any of these roles with a commercial developer, you should be able to learn the ropes well. Being a paid intern is also a great option.
As a developer, there are many ways where you can get a lucrative development deal. For example, there are a lot of industrial lands scattered all around the country that not many people are taking advantage of. Buying and developing these kinds of properties can be a lucrative venture.
Small towns and municipalities are always in need of developers for their projects with the promise of free land; this can be a gem in disguise. The truth is there’s opportunity everywhere and the only tested, and trusted technique is to find a land that costs less to develop but will bring in more.
The Ultimate Guide on How to Get Started in Real Estate Development: https://gowercrowd.com/real-estate-syndication/development-process