Working on a long term property development project can end up feeling like a never-ending task. With permits, loans and construction to sort out, progressing with these projects can feel like slow work. Here are our helpful tips to get you off the ground.
Sort Out your Funding
Having your property development finance in order at the start of the project is essential, as you don’t want to run out of capital while you’re in the middle of it. This kind of holdup will end up costing you money in the long run, as you scrabble to find investment in a partially completed project.
In a similar vein, make sure the capital that you have is enough to cover the entire project. Unexpected costs can arise, but doing your due diligence will reduce the likelihood of this happening.
Understand Building and Zoning
Understanding the building and zoning concerns of your property development will allow you to address these in advance. There’s always plenty of red tape for you to tackle so make sure that you do it by the rules. You don’t want to get caught out attempting to build a residential property in a commercial zone, or vice versa!
You can check with your local authority as you go through the planning phase to ensure that all of these boxes are ticked.
Have a Business Plan Prepared
If you’re looking for investment or a loan for this kind of project, then you need a clear business plan in place. This should outline what the costs for the project are, the outcome and the profits that you can expect to achieve from it. Don’t try to fudge the numbers at this point, as you don’t want to have unhappy investors at the end of the day.
If you need to, get outside help with the analysis part of your plan. You want to be covered for just about any eventuality within the project, so an expert can give you the heads up. Look for an analyst that is experienced in the property sector to help you out.
Work with Trusted Builders
While you might be tempted to work with the cheapest builders that you can find, this isn’t always the best way to select who you work with. It’s vastly preferable to look for builders based on their reputation, as you don’t want someone who will let you down and stall your progress.
For insurance purposes, you may be required to vet these builders and take a copy of their accreditations. Do this and keep it on file to ensure that you are covered in the long run. Experienced property developers will do this as second nature, whether it’s required for the project or not!
Building a major development takes time, but you want to be able to nudge it along wherever possible. This kind of planning will take your project to the next level and prevent as many unexpected hold ups along the way, which may end up costing you cash.