The term “real estate developer” is heard very regularly, not in the least because the current commander in chief, Donald Trump, is one. Of course, not every property tycoon becomes the next POTUS, and many of them even have no aspirations to do so. Most, including people like Randy Benderson, are more interested in doing the job and furthering the profession itself.
What Is Real Estate Development?
Property development is an incredibly complex field that involves a lot of different players. Considering it is also an industry that involves billions of dollars. Furthermore, developers don’t just buy and sell properties. They also renovate them, modernize them, and improve them. As a result, they also make huge contributions to the local economy.
In most cases, developers don’t work alone. Rather, they are part of corporations or LLCs. Others manage real estate investment trusts. They also usually focus on one of two areas, being land or building development. Land development means they purchase pieces of land that don’t have any grading, roads, or utilities attached to them. They define what the “covenants” of this land are and gain the necessary permissions for development. Once that is done, they sell the land on to building developers. A building developer is responsible for building property on land, be that commercial, industrial, or residential real estate. They may also purchase properties that have already been constructed in an effort to sell them on for a profit.
Why Develop Property and Land?
Property development, as shown, is a huge amount of work. It is also an expensive endeavour that come with high “hard costs”. Furthermore, it is very risky because there is no guarantee that the property will sell for a profit at the end of it. There is also a lot of bureaucracy to deal with. So why would people choose to become involved in this? Clearly, it is because those who make it big, make it really big (remember, again, that the current president of the United States is a developer).
Do You Get Rich?
The big question for many is whether you actually get rich or not in the field of property development. Unfortunately, there is no clear answer to that. To become really wealthy, to the point that you can quit your job and just live off your interest, you need a great deal of luck. The type of luck that many people had during the financial crisis, when they could purchase foreclosed properties for next to nothing, hold on to them until now, and sell them for huge profits. If that is your expectation, you are probably setting yourself up for failure. However, you can certainly earn sufficient money in this field to have a comfortable life, and one that is very exciting and interesting. Not everyone makes it, but if you have the right skills and a tenacious attitude, as well as a little bit of luck on your side, then there are great opportunities to be had.