Updated: May 30, 2019
Being a Property Developer is a career not for the faint hearted & incredibly rewarding. It tests and challenges a whole range of skills providing a hugely worthwhile journey.
The motives and the experiences for being a developer will be different for everyone. Some of us go the route of higher education followed by a corporate manifesto, whereas others will do this part time to provide a second income or support a better lifestyle.
FYI: Success does not happen overnight.
It doesn’t matter what route you take to become a property developer, there are some fundamental do’s and don’ts for all of us who want to make a success out of a property development business, and be a profitable developer.
#1 – Check Yourself Before You Wreck Yourself:
You wouldn't drive a car without first learning how to do so..!
Being a property developer is kind of the same.
Everyone who wants to get into property will benefit from educating themselves to provide a baseline of knowledge from which you can work from. There are some 'general tricks of the trade' which haven't changed throughout the years of property development. The tricks are imperative to know, and investing in yourself through education paramount to success..
You can Join Nicholson Academy which will launch very soon!
Don’t take on too much risk by not learning the basics… its to risky.
IMPORTANT… ACT on your education. Put it to good use and turn the theory into experience.
#2 – There's No 'I' in Team... But There is In Team Nico!
When you are new to anything, you want to learn from the people who have done it before.
This is especially true within property development.
Part of being a property developer will involve a huge range of tasks and skills, and it is unreasonable for us to think that we can master everything. With that in mind, the clever property developer will surround themselves by a good quality and experienced team who can help and guide the process.
All new developers will benefit from employing an architect, planning consultant and project manager as a minimum for every project they do - in Nicholson Academy we can assist you in opening essential avenues and introducing you to key players!
#3 – Figure Out The Figures!
Obviously, the most essential aspects of being successful property developer is to know the numbers! Property development involves huge amounts of cash and in most projects we do not see any return until the very end, which can be years down the line.
Therefore, development appraisals, cash flows, how to track spending and how to set profitable budgets. Being a top property developer will mean spending a lot of time bashing the calculator on a spreadsheet and running financial models. It may not be glamorous, but this is where the money is made.
#4 – Understand Your Market
A huge mistake most developers make is to build a project which is not suited for the market that they are working within. A great example of this is building small flats in an area which is popular for families where small to medium size houses are in demand.
This is obvious, but we must build what the market wants, not what we think the market wants. Marketing and research is hugely important.
By building and providing what the market demands means we are optimising our developments and giving yourself the best chance for success.
#5 – Speak!
Property development is an industry which relies on people and good relationships. Part of being a property developer involves working with people we get on with and doing deals with people we like. Networking, whether we love it or hate it, is a necessary action for success within property.
Many opportunities will pop up from people we have met along the journey.
So get out there, spread your property message and meet as many people as you can. You will be amazed at the doors which open!
So there you have five specialist tips to take on board your thinking about your property development venture and what it is like being a developer.
Luxor Group run an accredited, award-winning property development scheme across the Liverpool City Region which has given the opportunity to open up a hugely exciting education resource, the Nicholson Academy!
Paul J Nicholson