A real Estate developer is a professional in the field of real estate who manages development projects for new real estate properties. A real estate developer is very similar to a movie producer. They are the ones who manage the different aspects of a development project, find the appropriate staff to hire, and make most major decisions related to the construction of new real estate properties.
Just like a movie producer is responsible for finding the rights talents for the creation of the movie, a real estate developer, before developing the actual property, needs to develop a strong network of real estate professionals in a variety of fields that are required for the development of the project.
The most common type of real estate development projects is commercial real estate properties. Real estate developers with enough experience in the field tend to focus on the creation of commercial real estate projects such as shopping malls, resorts, condominium projects, farming lands, warehouses, office buildings, and apartment buildings.
What Professionals Does a Real Estate Developer Work With?
A real estate developer does not necessarily have to have any particular level of education or a specialty in a certain field, although a degree in a real estate related field could be invaluable for any real estate developer. Additionally, a real estate developer’s background could include experience in any of the fields that are related to the real estate development project, and they can fill the role of any of the other professionals that they will be working with depending on them own experience or education.
These are the main professionals whom a real estate developer will need to hire and work with:
- Financial Asset Manager
- General Contractors
- Civil Engineer
Among others, these individuals and partners are all necessary for any successful development project. If the real estate developer has experience in any of these related fields, they can fill that position.
What Are the Requirements for Becoming a Real Estate Developer?
There are no specific requirements for becoming a real estate developer. Official education or a degree in a real estate related field, however, is highly recommended, and it will make the process of developing real estate much easier and less risky, because an educated real estate developer will have more knowledge of the different risks and obstacles that they might face, in addition to having more knowledge about all other aspects of the development project.
Additionally, a real estate developer needs to have a set of skills and talents that most real estate investors don’t need.
Real estate investors generally have access to numerous methods for investing in real estate, some of which don’t require their involvement and decision making at all. Real estate developers, on the other hand, require deep knowledge of real estate and other related fields, and they need to be good at planning for the short term as well as the long term using the resources that they have.
What Are the Traits of a Good Real Estate Developer?
A good real estate developer will have a set of traits and skills that will greatly affect their chances for success:
- A Network of Relationships: As mentioned above, in order for a real estate developer to manage a development project, they needs the help of many professionals in a number of different fields. A good real estate developer will have access to a network of professionals in those fields, allowing them to seek the advice and to hire people whom they trusts and who share a similar vision of what the end result of the development project will be.
- Ready to take on the Risk: A real estate development project is not a small venture to take. It requires a large number of financial resources to be invested, and a typical real estate development project will cost a high amount of money to cover all the expenses: from purchasing the land, through building materials and the actual construction, to the different fees for hiring professionals. These expenses could result in a drastic loss if the real estate development project ends up in failure. If you’re not willing to face the risks, then a career as a real estate developer might not be cut out for you.
- Good Problem Solver: A good real estate developer should be prepared to face and solve all kinds of problems that are both common and rare in the real estate development business. Even when working with a limited amount of resources or against the clock, a real estate developer should always be able to find quick solutions to any problems that may arise. The good thing is that a good real estate developer has access to a network of trustworthy and reliable professionals, and they can always seek the advice of these professionals for solving the different problems.
- Be Creative: An average real estate developer will seek the development of real estate projects to fulfil the needs of the market that they is investing in. However, in markets where competition is high, a good real estate developer will need to stand out in order to get the project to sell and to succeed. Creativity in real estate development has a very high ceiling level, and it’s up for the real estate developer to stand out by creating projects that are unique, fulfil the needs of the market, and attract people.