A real estate or property developer is a professional who purchases real estate property and begins building on it. These individuals can also purchase property that might not be in the best condition and work to renovate it. Then, they can sell it to real estate investors. If this sounds like your preferred career path in the real estate industry, keep reading to learn how to become one.
Our team at Titan Funding has compiled a list of our top tips for becoming a real estate developer that you can use to help get you started with your new career.
What Does a Real Estate Developer Do?
Generally, a real estate developer oversees and delegates all the tasks related to creating a property from scratch. They also handle all the work of selling the properties once the renovations are complete. So, for example, an average set of tasks for this profession might be scouting, reviewing, and purchasing new land. Then, they fill out the required paperwork for owning land, hire work teams to renovate and build, and develop more paperwork for selling the properties. They also work with the financials by creating budgets and other tasks related to selling homes and various building properties.
As a real estate developer, you can also work with builders and designers to create your ideal property. Some other tasks may include:
- Negotiating prices and contracts.
- Overseeing the progression of various projects.
- Managing project budgets.
- Collaborating with other professionals in construction, design, and real estate.
- Picking up the necessary city permits and paperwork.
- Brainstorming new ideas or opportunities for development projects and properties.
What Are the Requirements for Becoming a Real Estate Developer?
There are a few requirements for becoming a real estate developer, such as obtaining a certain education level and possessing the right licenses. Most real estate developers have earned their bachelor’s degrees in areas such as real estate, business, management, engineering, or finance. You may even consider pursuing additional education, like your master’s degree, to learn more about owning and operating property businesses. In your college courses, you can expect to learn subjects like:
- Real estate laws and regulations.
- Urban planning.
- Public policies.
In your education, you may complete various projects, which you can add to your portfolio to showcase your skills when you graduate and begin searching for a job. While you’re in school or if you recently graduated, consider applying for an internship. An internship can serve as supplemental education to your college coursework. You can practice what you’ve learned in the classroom in real-life situations while networking with real estate professionals. Establishing a network early in your career can help you find work, meet others, and advance your skills, which is helpful for this role.
Additionally, all real estate developers must obtain a real estate license in their state to begin working. In Florida, our home state, these are some of the general requirements to earn a real estate license:
- Being at least 18 years old, with a high school diploma or GED.
- Complete an approved 63-hour classroom course by the Florida Real Estate Commission (FREC).
- Apply with the state, submit a fee, and provide fingerprints.
- Obtain a 30 or higher on the Florida Real Estate Law Exam and pass the state Real Estate Sales Associate Examination.
After getting your license, you’ll have to earn some experience. Gain experience by working for a real estate company. Here, you can learn more about the industry and enhance your skills. In an entry-level position, you’ll complete various tasks, such as:
- Coordinating and organizing contractors and vendors.
- Communicating with clients as their project progresses.
- Conducting market research to learn more about real estate trends and competitors.
- Developing helpful financial models for others to understand how much a project may cost.
What Are the Advantages of Becoming a Real Estate Developer?
A potential advantage you may experience when becoming a real estate developer is you can control your workload, determining how little or how much you prefer to work. This is possible because you’re essentially your own boss, and you can delegate or outsource work that might involve your weaknesses, which means it might take you longer to complete. But if you’re your own boss, you can ask others to do it and know they’ll do it correctly.
You can also pick the customers you prefer to work with, which means you can have a small sample of loyal customers or collaborate with hundreds of them. Some other advantages you can experience include:
- Earning a higher chance of getting referrals.
- Connecting with local communities.
- Having a predictable and steady income.
- Following a simple business model.
- Talking with others face-to-face more often.
- Working in a role you’re passionate about and enjoy doing every day.
Other Tips for Real Estate Developers
Some other tips to consider for real estate developers are:
- Earn supplemental certification. Enroll in a local university or online course where you can obtain a certification in special interest areas of the field, such as managing properties or project management. This can help increase your knowledge and demonstrate your passion for your career to others.
- Build relationships. The real estate industry is about connecting with others, such as clients, vendors, builders, and contractors. The more you meet people and form positive connections with them, the more you can increase your network and reputation as a developer.
- Join a partnership. If you don’t have a lot of money when you start your career, consider joining a partnership with someone who you trust and who can help you invest money into projects.
- Buy land. Once you have the money to buy land, you can start building properties and selling them to earn a profit.
- Develop plans. It’s vital to create plans throughout every stage of the development process. This way, you have a paper trail of what you’re supposed to do next and how you can accomplish it promptly, which helps you stay on track with projects and deliver anticipated completion dates for clients.
So, there you have it, our team’s top tips for becoming a real estate developer. If you have any other questions about the role, contact us. And, if you’re a seasoned real estate developer with other helpful tips we didn’t include on the list, let us know, and we’ll be sure to add them for others to review.