Really broad question, I know, but what are the nuances, elements, and phases of real estate development? I'm writing a business paper for a competition, and I'm also thinking about being an RE developer when I'm older.Here's what I know about RE Development:1) Buy undeveloped land2) Hire contractors to build houses3) Sell houses for profitor1) Buy property (preferably distress property?)2) Fix/renovate3) Rent it out while waiting for market to get better4) Sell for profitThat's my layman's knowledge of RE Development. To be clear of my question, what are the details and fine points of real estate development? What do I need, besides money? What's the best way to get money to finance this?Thanks all
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Real estate developers are entrepreneurs who obtain land, prepare it for development and manage the construction process. They may also spend time negotiating projects and participating in public hearings.
EDIT: My apologies. I get the query now. :) If this church is constructing a mall so as to elevate cash, I'm no longer certain I might consider it. Though any individual above gave a few examples of church buildings that DID do it to elevate cash, so I wager it trusted what they used the money for. If any individual donates $X and the church turns it into $10X by some means after which is helping 10 instances extra individuals than they might have with the fashioned donation, I wager there are worse matters. On the opposite hand, if the leaders of that church use the money for themselves (e.g., shopping fine vehicles, and so on), I believe I might surely have a crisis. The above is all situated on if that church used to be truthfully MAKING any cash off of it; if they're truthfully wasting cash, I might like to understand their motivation. Though if they're wasting cash out of the undertaking, I gotta consider that no less than of their brain they have got a well purpose for doing this. If this church is, for illustration, activity this growth to support keep the field surrounding its headquarters or different predominant websites, and preserve it from getting run down, I'm happy with it. P.S. - I by no means concept the rationale of the query used to be to bash, sorry if I gave that impact. I simply misinterpret what you have been asking and concept a bit of explanation used to be so as. I fully grasp the query...FINALLY. ;-)
Real estate development is a vague term and can mean many things. For example it can mean to purchase a parcel of land, have it rezoned into smaller parcels, build its infrastructure (roads, drainage/sewers, utilities), build on each lot either commercial or residential improvements and sell to an end user, or opt to keep them self as investment property. Or, any fraction of the previous sentence. The key issue is to buy unimproved or under-improved land and develop it to make it more valuable to sell/rent at a profit. Real estate developers can approach development from a general contractor point of view, but to do so limits the profitability. Obviously one would need to have an expertise in: their real estate market, local zoning laws and subdivision of lots, infrastructure construction, commercial and/or residential construction, marketing, contract law and finance. Getting money to develop can obviously come from a commercial loan as it is an commercial enterprise. Though it is not uncommon to organize a group of private investors or equity firms to back a project for a cut of the projected profits.
