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Starting your own property development business can be a fulfilling and lucrative career, but there are a few things you need to do to help make sure you get off to the best start. Below we’ve listed some top tips for new property developers to help you get started on your new business journey. Keep reading to find out more.
Create A Business Plan
One of the first things you’ll need to do is to create a business plan. This plan is particularly important if you plan to seek investment to help launch your property development journey. In your business plan, create an outline of your plans and goals for your property development and how you intend to run it. For example, are you going to be flipping houses for profit, renting out properties as a landlord, or a combination of both? You should also include a section on how you will be funding your business (alongside any investment from outside sources). Make sure you include details of how you would like to grow your business in the future and how you would use the investment to help your business reach its goals.
Structural Warranties
An important aspect of running your own property development business is making sure you have a structural warranty in place. You will be able to find such a warranty from Buildsafe, which are a structural warranty provider. This helps cover the cost of any faults or repairs that need to be carried out on a property for a certain period after it’s handed over to the new owners. Having a structural warranty in place benefits both the new owner of the property and yourself as the property developer. It can reduce the cost of legal fees if issues are brought to light on the construction standards of a property. They also help to reduce the stress and potential cost to new owners of having to fix issues and carry out repairs. Having a structural warranty in place can make it easier to sell properties as it provides a safety net for new homeowners.
Investment And Funding Projects
When you’re first starting out as a property developer, you might need to seek investment to help fund your initial projects. Many people when launching their property development career may use angel investors. These are individuals who have the capital to invest in property but don’t wish to be directly involved in the work. As well as a good business plan, you will need to pitch to investors in order to convince them that you’re a good investment. Make sure you work on your presentation skills, speaking confidently, and being able to give informed answers to some of the potential questions they may have. Try practicing your pitch and that you’ve highlighted the main points you wanted to make. Tailor each pitch you make to the people you’re pitching to, and try not to ramble for too long. Make your pitch succinct and only include relevant information to help keep your investors interested.
Sourcing Contractors And Suppliers
Finding good contractors and suppliers is important for your property development business. You need a team of people you can trust and rely on to provide great service time and time again. When looking for new contractors and suppliers, try and find options that have been recommended to you by people you know or individuals already in the property development business themselves. This way, they can vouch for their professionalism and reliability, and you’re less likely to end up with someone untrustworthy. If you can’t get a personal recommendation, then the next best option is to find someone that has plenty of good reviews from previous customers. You can read reviews on their website, on search engines, and through trade review platforms. When choosing your contractors, you will need to factor in your budget plan. Some developers are more directly involved in the day-to-day work themselves than others. Getting stuck into some of the work yourself can help you to save money when developing properties, as you won’t have to pay contractors to do as much for you.
Keep Your Goals And Targets In Mind
A career in property development isn’t for the faint-hearted and can require a lot of planning, hard work, and determination. When constructing or renovating properties, it’s common to run into unforeseen issues along the way from time to time, so it’s important to try and stay motivated. As well as the initial targets you outline in your business plan, try and continually be setting goals and targets and keeping them in mind throughout your development journey. It will help to make it easier when issues do arise, rather than becoming overwhelmed by them. Setting smaller targets will help to make the process more manageable and break the project into easier, step-by-step tasks.