“The best investment on earth is a piece of it.”

If you’ve ever heard the above quote, then there’s no doubt that you’re familiar with the value of real estate investing. Simply put, the world’s land is becoming more and more precious every day. As the world’s population and subsequently demand for land continue to increase, the available supply of land holds steady, driving prices for land up.

If you’re looking to profit from that price increase, then it’s time for you to consider learning the property development process so that you can become an educated real estate investor.

What is the Property Development Process?

In a nutshell, property development is the entire process of acquiring a piece of land and building on it to suit the desired purpose. Property development could include taking a piece of land untouched by nature and turning it into a high-rise or an apartment complex.

Or, it could also entail buying a lot that contains that a high-rise, demolishing it, and rebuilding the land with a new structure for another purpose.

Acquiring the Property

The first step in the property development process is acquiring the property itself. You may be surprised to know that simply negotiating over land and getting everything squared away from a legal standpoint can take years. Whenever you’re dealing with the large sums of money that property purchases involve, things move slowly.

This raises the important caveat to real estate investing. If you’re looking for your money to stay fairly liquid while maintaining high growth, then real estate investing might not be your gig. Property development is always a long-term investment.

Forming Property Development Plans

Once the property has been acquired, plans can start being created on the minute details of how the building to be created will be structured. Property development companies will typically either have an architect team in-house to do the job or will outsource the task to an architecture company that they often work with.

Once these details are finalized, the property development company will have an approximate budget of the money they need to make it work. This is where you come in as a real estate investor. By financing the development, you’ll be able to take part in the profits when the property is up and running.

Executing Building

Once financing has been secured, and plans are nailed down, all that remains is for contractors to come in and start building the structure(s) on the property. This is the most time-consuming process. The construction industry is notorious for missing deadlines.

If you want to make money in property development, it’s crucial that you invest in a company that has a history of getting its contractors to stick to deadlines.

Property Development Made Simple

There you have it. Now that you are better equipped to understand the property development process, you should be able to make more educated real estate investments.

For more financial advice, be sure to take some time to check out the rest of the articles on the website!

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