How to get started in property development

 Anyone who is interested in property development should always be up to date with the latest information in the real estate sector. You’ll probably also need more knowledge than you may think – there are things you already know, things you know you don’t know, but as soon as you get into your first project you’ll also stumble on lots of things you didn’t even know you didn’t know!

Becoming a real estate developer requires years of experience, but the final result can be both professionally and financially rewarding. In order to support the real estate sector, Abraham Leser founder of the Leser Group, a New York City-based real estate development and property management firm, gives us a 9-step guide on how to carry out a real estate project. Here is what you should know before heading down the property development path.

1. Conceptualization of the project

The conceptualization of a real estate project begins with the identification of a property or land, with certain characteristics that meet a demand or need in a given area. This conceptualization includes the legal and financial pre-structuring of the project, feasibility and conceptual studies and risk analysis, as well as evaluation of the viability of real estate development.

2. Legislation, legal and fiscal framework of real estate operations

Check that it is feasible to obtain the necessary permits in accordance with current legislation. Consider the legal regime of property, urban planning and land regime, the public registry of property, property valuation, tax charges and legal framework applicable to real estate operations.

3. Business plan and financing

Document the analysis of the information, the viability and feasibility of the real estate project. Develop the proposal, its approach, its objective, analyzing various factors such as: marketing and benchmarking, risks, contingencies and opportunities, strengths, weaknesses, opportunities and threats, the resources to be used (financial, legal, legal, human, technological, etc. .), scope, costs and profits. Identify the sources of financing for the development of the real estate project, the developer's own resources, capital contributions from investors, bridge loans and direct loans, credit bureau, interest rates, guarantees, etc.

4. Purchase or insurance of property

The purchase or insurance of the property is crucial and can be done after the feasibility study., explain from The Leser Group. Ensure the evaluation of the property, that it is free of encumbrance, the financing, the deed and the management of paperwork.

5. Design, planning and organization of the project

This covers the architectural design, engineering, consultants, contractors, legal and accounting services, studies, budgets, programs, manuals, policies and procedures; as well as the planning of work, construction processes and acquisition of resources.

6. Studies and permits

Research and manage the studies, permits and documentation required by government authorities to carry out real estate development.

7. Construction

Build the real estate project according to the design, guidelines and defined planning.

8. Real estate marketing

Evaluate and develop marketing and dissemination strategies according to the needs or desires existing in the real estate market, objectives, forecasts and budget. Advertising, public relations and promotions on site.

9. Marketing: sale / rent and administration

Carry out the promotion and sale of real estate development, or rent and administration of it if your objective is not the sale.

Although each real estate development is unique and has its peculiarities, it is important to always keep these steps in mind. They are essential to guarantee the success of the development and ensure the profitability of investors, as well as the prestige and image of the company that develops the real estate project.

Real estate development and property management company, the Leser Group, with headquarters based in Brooklyn, NY, is dedicated on the development and the improvement of income-producing properties. It also has a project to develop a 230,000-square-foot residential development in Borough Park. This company acquires, and leases such properties.