CHAPTER 3

THE ATTRIBUTES OF SUCCESSFUL DEVELOPERS

Introduction

Successful real estate developers are not created overnight. Their success is a culmination of education, attitude, experience, instinct and seeking the right advice. With the constant changes in the real estate industry, individuals in this business must monitor and be aware of these changes. They must be one step ahead so that they can either take advantages of new opportunities or to alter their strategies to avoid risk. For example, seasoned developers who sold their developments at the peak of the boom will be taking advantage of the next downturn. They will be purchasing cheaper land for their future projects. If you want to tackle the development world, you must have strong financial backing, a good understanding of the market, a hunger for knowledge and a strong level of commitment.

Do you have the right attributes?

Before venturing into the development game, be honest and ask yourself the following questions:

• Do you have the knowledge or experience to tackle a development project?

• Can you afford the time away from your regular job to manage the building?

As well, look at the following principles and see if you feel comfortable in pursuing them.

Know your limitations

As real estate development can be broken into several categories, it is essential before you embark on a specific project, that you should know your limitations. These include, amongst others, your financial resources, your knowledge of the type of development, your network of advisers and your understanding of the local conditions. Also, do you have the drive and motivation to see the project from start to finish? Do you have a passion for small detail? If you have another job, can you afford the time to manage your project? By careful planning and visualising your end product, you will reap the rewards of your endeavours.

Be realistic

We often hear of motivational speakers endorsing the principle of “think big”. While this may be a bold outlook, you still have to be realistic about the possible pitfalls and the economic environment. Donald Trump, one of the most recognised developers in the modern era, has recognised this and believes in thinking big. He believes that most people think small because most people are afraid of success and winning. Most of Donald Trump’s developments are in America (where everything is big). America has a large population that naturally creates a strong market force, so he can afford the luxury of thinking big. If you want to think big, think big within the parameters of your market and your capabilities. If your big idea fits the right conditions, then you have to remain focused to the point that you become obsessive and passionate about your project.

Become an expert

To become an outstanding developer, you must become an expert. To achieve this status, you have to educate yourself by obtaining as much knowledge as possible about the industry. It does not necessarily mean that you have to go back to school and spend several years studying. An alternative method is to read various books related to real estate development and investment. Read real estate articles, listen to blogs, attend seminars, join local industry associations and learn to network with people within real estate circles. Also, ask questions from experts and professionals in the industry, but most of all, learn from your own experience. Knowledge is power, and with this power, you will be able to make informed decisions and reduce the risk in whatever project you are about to tackle.

Take care of the pitfalls.

When it comes to real estate development, there is no such thing