Property developing is often talked about as something that people do as a side hustle, or a way of investing for the future and making a little extra cash in the meantime. However, property developing can be your full-time career if you wish for it to be.
However, there’s a catch: you’re going to require a number of things to help get you started. If you’re seriously going to consider property development as a career choice, then you need to be in possession of the following…
#1 – Startup capital
All startups require some form of capital of course, but if you’re looking to go into business as a property developer, then your access to startup capital has to be particularly large. The first step for most property developers is obtaining a mortgage to allow them to purchase a property, which they will then usually rent out or refurbish for resale. Your finances will thus have to be in good condition to ensure you can persuade banks to lend to you.
#2 – Contacts
Property developers need a solid list of contacts to ensure their ability to thrive in the industry. It helps to have friends in the real estate industry, as they can tip you off about any potential bargain properties you otherwise might have missed. If you’re intending to become a landlord (as most property developers do), then you’ll also need excellent contacts with tradespeople. This means having a variety of different people you can call on for maintenance and safety checks; from plumbers to companies who will check to see if the smoke alarms in your properties are still working, you’re going to need a well-stocked Rolodex.
#3 – Courage
Property developing is not for the faint-hearted. The property market is volatile, and a good market can suddenly dive for no apparent reason. As property developers rely heavily on the market to generate a profit, there is an undeniable amount of jeopardy involved in this industry. When the real estate market plummets — which will happen from time to time — you have to be confident that you’ll be able to cope, dig deep, and wait for better times. If you can envision a situation where the market dips and you panic and want to sell your properties, then this probably isn’t the industry for you.
#4 – People skills
Given that property developers are primarily focused on properties, it might sound odd to consider the fact that people skills are important. However, people skills will stand you in very good stead as a property developer. Not only will they help you maintain that contact list that we’ve already outlined is important, but good people skills will also allow you to build good relationships with your tenants.
Property developing is a tough business choice, but it can also be deeply rewarding and satisfying. If you think you’ve got the capital, contacts, courage and people skills to make a success of this venture, then going into business as a property developer might just be the best choice for you.