Do you have a large property that you’re sure could be upgraded to great wealth but have no idea how to develop it? Are you nearing retirement and want to move to a smaller property but get the most value from your current property? Real estate development could be the answer you are looking for…

As in all the projects that are undertaken in life, there is a system for everything. Real estate development is exactly the same. There are seven key steps to real estate development:

The critical steps are:

Find a seat (if you’re not sitting in one right now)

website analytics

Feasibility

programming permission

Finance

Building

Dirty

Finding a site is fairly easy, just look in the real estate section of the newspaper. Look on real estate websites. You are looking for a property that can be divided or that you can build on more than what is currently on the property now; or added value.

If you already own land that you feel could be developed to create much more value for you; no need to find a site.

Site and feasibility analysis is the step that can be critical for a project. It basically requires researching a site to see if it is profitable. Real estate development can have hidden costs. To find out what costs are required, it is worth calling professionals to find out the costs. Call your local council for all the costs required to connect/upgrade all utilities for your project. Architects are an excellent source for determining costs, such as council approval costs, including the required drawing. Construction cost can be very important as in many projects where new buildings will be built, construction costs are a large part of a project. The last important piece of information is the sale price because if you can’t sell your product for enough (or it stays on the market for a long time), the project will not be unfeasible.

Planning permission, this can sometimes already be done for you if your property is advertised as having approval, you will not need this. If you own a property that does not have this, you will need professional help. Architects can be invaluable here or someone who is a real estate developer or real estate development company that offers project management can help. Using a professional can take away the pain and stress, making for a much better experience.

Finances are one of the most fun topics to discuss. As we all know, talking to banks can be difficult to get home financing. And the same, if not more, for projects and a good financial package is required, as all banks will have requirements that include the markup. Banks will not lend on a project with a profit margin of less than 20%.

Construction can be one of the most exciting and scary steps. Obviously most people will not do the building themselves, a builder will. Construction is pretty simple when you have a building approval that allows the builder to start building. By paying for construction as the project progresses, the builder will require funds for the work completed. Paying the builder can be a bit tricky because obviously if you end up paying for the build before it’s completed, the project could fall apart. Have a current contract, the contract will list all the necessary steps and the funds can be distributed to the builder in stages of development. You can pay a professional to oversee these steps and keep the builder honest at all times.

If you are concerned about a large project, hire a surveyor to monitor the project. They will report on what has been completed and what needs to be paid for. Surveyors are professionals at this and take the risk out of construction. Another advantage is that if you have a quantity surveyor, you can also have them create a depreciation schedule to help sales.

Sales is an interesting topic. We all know that you can use a real estate agent to sell products. This can be very helpful as these people are professionals in the property sales business. Another option is to go to a promoter (or marketer) who will actually sell the product for you to a list of clients that they have (investment looking client database). This may cost more, but if you need early sales, they can be extremely helpful in getting quick sales.

If you have a property and would like to develop it into something much more or know of someone who needs it. However, if you are still not sure who is the first person to contact to get started.