How To Make Real Estate Development a Success

Today’s real estate market is driven by Millennials, who are increasingly looking for a place to call home that reflects their lifestyle. As such, developments geared toward this generation require an overhaul in order to maintain their interest. It takes a lot of hard work and strategic planning to make real estate development successful. However, with the right principles and tools, it can be done.

In this article, real estate developer, entrepreneur, and consultant, Moe Mathews will take a look at some important factors you should consider when developing your project so that you have the best chance of reaching your goals.

 

Know What You’re Trying to Achieve

Successful real estate development is about more than just creating a new property. It’s about achieving results. Before you even think about breaking ground on a new development, Moe Mathews indicates that you must determine the goals you hope to reach through the project. This will help you discover what potential impact your new project might have on the market. From there, you can decide if the benefits of your development are worth the costs related to making it happen. For example, if your goal is to increase the number of property sales in your community, you’ll need to consider the implications of your project on the overall economy.

 

Set a Clear Objective

With goals in mind, you can now begin setting objectives that lead up to the achievement of those goals. As you do this, Moe Mathews points out that it’s important to keep in mind the real estate development principles discussed above. While you might have a goal of increasing the number of property sales in your area, this objective is meaningless if it doesn’t lead somewhere. Your objective, then, needs to be translated into an action that leads to the achievement of those goals. For example, if your goal is to increase property sales, you’ll want to create an objective that aims to attract more buyers. Once you’ve identified the audience that’s most likely to be interested in your product (i.e., Millennial homebuyers), you can start exploring ways to reach them.

 

Define Your Market and Understand What Drives it

The best way to determine the potential impact of your development on the real estate market is through research. Moe Mathews suggests starting by identifying the segments of the real estate market that are the most likely to respond positively to your project. From there, you can delve into the details of their behavior and get a deeper understanding of how they influence each other. By doing this, you can figure out how your project fits into the bigger picture of the market and its trends. This will give you an idea of the potential impact it has on the real estate market as a whole.

 

Create a Unique Selling Proposition

When you set your goals and objectives, Moe Mathews suggests creating a unique selling proposition (USP). A selling proposition is the key selling point of your project that speaks to your potential clients. This is a short statement of your USP that includes the main messages of your development, as well as key details such as the project’s primary benefits, target audience, and the unique selling factor (USF) behind those benefits. Essentially, it’s a clear statement of why your property is worth a premium over those that already exist in the area.

 

Communicate Often and Early

With a USP in mind, you’re well on your way to developing an effective marketing strategy. The first part of this will be communicating often with your potential clients and early investors. By regularly engaging with your investors, you’ll be able to establish a strong rapport with them before they even consider investing in your project. While you don’t want to overwhelm them with marketing material and constant communication, you do want to make sure they know about the project and understand the advantages of investing in it.

 

Keep an Eye on the Bottom Line

At the end of the day, real estate development is about more than just attracting new buyers and investors. It’s also about creating a successful project that ultimately makes money. To ensure that this happens, you need to keep an eye on the bottom line. This is the financial health of your project and the factors that could potentially threaten its success. Things like the interest rates on mortgages, the competition in your market, your project’s financing plan, and the overall feasibility of the development all need to be taken into account. According to Moe Mathews, these factors could have an impact on your project in a number of ways, as they could cause buyers to hesitate, impact the profitability of the project, or even lead to the project being scrapped altogether.

 

Conclusion

Real estate development is a complicated process, but with the right amount of effort and knowledge, it can indeed be a success. Successful real estate development is about more than just creating a new property. It’s about achieving results. You might be interested: Tips for Starting and Running a Real Estate Business.