Practical Tips Every Property Developer Needs to Know
Property development is not only a diverse and exciting sector. It is one that has a lot of return potentials as well. Still, the numerous ways which a project can be managed and funded can be such a minefield. For the individual with limited experience, it can easily get overwhelming especially if one were to consider the possible pitfalls that are present too.
To help you in your journey in becoming an accomplished property developer, below are some tips that should help you make informed and educated decisions every time.
Do your homework
You need to get a thorough understanding of what property development is. Many potential developers make a very common mistake of selecting the wrong area for the project. Many also make the mistake of just going into the project almost blind. If you take time to do your homework and to raise the right questions, it is easier to get a more accurate vision of the area you are interested in and what its potentials are. As a result you get shielded from major problems in the future.
Secure necessary planning permissions
A development process is not going to commence unless a planning permission has been granted to you. Determine if your planned development will require a planning permission as this can be a long process and the sooner you get the permission applied for, the better. Many lenders will require planning permissions before they will proceed with granting you any funding.
Highlight your experience
Lenders would prefer to work with developers that have clearly had experience in the area. This is the reason why your CV is always going to be a huge deal to them, along with the CVs of the people that are working in your team. A background in delivering projects of the same nature in the past will always work to your favour. If you are a first-timer, then establishing that you have done your homework will be necessary so you can secure the capital that you need.
Secure quotes and plan for contingencies
Always ask for competitive quotes that you know are going to suit your specific budget. It is easy for costs to pile up in development projects to, so it is always prudent to take into account the risks of going over your budget or the project exceeding the timeline you have set. A contingency fund is always a good part of budgeting. Most experienced developers swear by setting aside an additional ten to fifteen percent to the budget. This ensures that you are better prepared for unexpected expenses that may come your way.
Be honest and realistic
Most people tend to add frills to their experiences and qualifications in the hopes of gaining lender trust, only to find out later that things have blown up in their face. Being honest when it comes to your financial standing, your abilities, and your experiences will always be beneficial to your application. A venture that is banked on honesty is always the best way to put your right foot forward.
For more advice and guidance on property development, Junaid Iqbal Mohammed Memon of Memon Property Developers will be more than happy to accommodate you. For the latest news in property development and more information on Junaid Iqbal Mohammed Memon, visit his blog here.