Within the past year, home sales have increased by 43.2%. With this increased pressure in the homebuilding industry, more and more people are searching for investment opportunities. That’s where real estate development comes in.
It’s one of the best strategies when it comes to investing in commercial real estate. So, if you’ve been lingering on the idea, now is the time to take advantage of the market.
Learn more about real estate development in New Orleans and all over the United States. All you have to do is keep reading. We have everything you need to know.
Why You Should Consider Real Estate Development
To many people, real estate development seems like an option for millionaires and billionaires. In reality, anyone with little investment knowledge can invest in commercial or residential real estate.
Property development offers so many advantages and incentives:
- You can save money by taking advantage of properties that you can develop for a price under market value
- You can make more money by taking advantage of large development profits
- You can receive rental returns that can help you pay off the mortgage faster
- You may be able to receive more funds as a large portion of the property value
- You will get better tax benefits as a return for investing in your new property
With all of these benefits, it’s easy to see how real estate development will help you build your portfolio as an investor. In fact, you can build your portfolio faster and safer than other investors who aren’t taking advantage of these opportunities.
What Is Real Estate Development?
Real estate development takes multiple activities and processes into account. From purchasing land to building development to facility design, you’ll be handling multiple responsibilities. It could include anything from roads to high-rise buildings.
The key here is that you’re in control. You can choose what you want to invest in. If you have a passion for residential development, you can follow that passion by investing in it.
What Does a Property Developer Do?
A property developer has to have the want to succeed, as well as the grit required to wait it out. Property development isn’t an instant return. So, you have to be patient about waiting for financial success from your investment.
With this, you need knowledge about the industry. Luckily, you’ve found us. So, you’re learning right now.
You’ll also learn some things while you’re in the middle of development. Some lessons are only taught while you’re in the middle of development.
Overall, you need to know about properties, economics, markets, town planning, construction processes, and marketing.
The best way to approach learning all of this information is through starting small. You don’t want to overwhelm yourself with information too quickly. Instead, you should build up to larger properties as you learn more.
How to Get Started
Now that you know the basics about property development, it’s time to get started with investing in commercial real estate. But, to do that, you need to know who to talk to and what to do.
It’s more than hiring a construction company.
So, let’s walk through the process step by step.
What Kind of Contractor Do You Need?
There are several teammates that you’re going to need while you’re starting your property development opportunity. After all, it’s unlikely that you’re going to be the one paying for, building, and selling the property.
So, you should consider adding the following experts to your team:
- Real estate agents who can help you find the best property to build on
- Finance strategists who can help you get the best finance options
- Accountants who can help you with the financial legalities of the property
- Lawyers who can help with any contracts that you need to write and/or agree to
- Town planners and urban designers who can help you come up with the best structure for your layouts
- Architects, designers, or draftsmen who can help you build the model for the buildings that you want to invest in
- Engineers who specialize in civil, structural, traffic, acoustic, and environmental areas to assist with a variety of building needs
- Landscape architects who can help you devise the best building plan
- Building contractors who can help you develop a great outline for your property
- Project marketing specialists who can help you with sales
- Development managers who can help you manage building activity
- Project managers who can monitor the completion of the build
- Construction managers who can ensure safety and compliance
- Quantity surveyors who can help discover the true costs of the project
- Property strategists who can help you research, locate, and negotiate a property investment
Now that you’ve got your team of experts and specialists together, it’s time to start the hunt. As you’re researching and locating potential investment properties, there are a few stages or steps that you’re going to encounter:
- Pre-Purchase stage – you’ll investigate properties to invest in based on the financing that you have lined up
- Negotiation – you’ll agree on a price for the purchase of the property that will help you make a profit in the end
- Approval – you’ll have your architect draw up plans for the town planner to approve
- Documentation – you’ll call in consultants who can help you draw together the necessary documents to begin funding and building the property development
- Pre-Construction – you’ll obtain quotes from builders and financers for the project
- Construction – you’ll have your construction team start the development process
- Completion – you’ll have finished the construction and need to decide between selling or leasing
And, just like that, you’ve gone through successful project development!
Your New Orleans Real Estate Development Team
You can’t dive into real estate development without the right team members by your side. That’s why you need to take the time to find the right team that’s going to get you through the next few months of planning and construction.
If you’re looking for a savvy, experienced construction team, you can count on Eagle Eye Resources. Our team can help you build real estate in New Orleans.
We are a vertically integrated real estate development company in New Orleans. The term integration means that if you provide us with the vision, we can create it from the ground up. With our Design-Build services, our architects can design the facility of your dreams and seamlessly start construction with our team of experienced contractors. We are black real estate developers in addition to being one of the 100% black-owned construction companies in the state of Louisiana. To sweeten the deal, we provide an outsourced facility maintenance program for our commercial clients to make sure your property remains in peak condition.
Give us a call today to get started.
938 Lafayette St Ste. 236
New Orleans, Louisiana 70113
(504) 233-3173 Office