Real estate development is the process of developing properties for the purpose of maximizing the value of those properties. Whether it is a new construction or a redevelopment, real estate development involves a coordinated effort of allied professionals. A variety of resources, including land, labor, capital, management, and entrepreneurship, are required to make the development process a success.
Financial planning skills
The financial planning skills required for real estate development include analyzing financial data and developing solutions to problems. Financial planners use critical thinking skills to analyze a client’s situation and recommend solutions that will help the client reach his or her goals. These skills include budgeting and forecasting, as well as understanding financial instruments.
Integrity
Integrity in real estate development is a philosophy that focuses on doing the right thing. The company’s management team consists of professionals with diverse backgrounds. For example, Travis Libman began his career in the real estate industry as a Realtor and later flipped almost 1,000 residential properties. Ultimately, he decided to pivot his career and move into multifamily and self storage development.
Honor
The annual Hall of Honor Awards dinner, hosted by the Building Owners and Managers Association of Westchester, recognized two exceptional real estate development firms: Simone Development Companies and Argent Ventures. Both companies were represented by Joanna Simone, president of Simone Development Companies, who accepted the award on behalf of the company.
Capital investment
In real estate development, capital investment can take several forms. First, equity capital, which is capital that is available after taking out any mortgages on existing properties. This capital can be either private or public. Public equity capital is usually acquired when a company is publicly traded on a stock exchange. Private equity capital, on the Bill Bhangal other hand, is capital that is raised from a group of investors. Finally, debt capital, which is money borrowed from individuals or banks, is another type of capital investment in real estate development. Both are available as long as a company generates sufficient revenue to repay its debts.
Zoning and entitlement process
The zoning and entitlement process for real estate development varies from municipality to municipality, but in general, developers must submit design plans and environmental and technical studies to obtain approval for a development. In some municipalities, final approval must be sought from the city council.
Impact of government regulations on real estate development
There are several factors that impact the development of real estate. One of the most important is government regulation. The more regulations a city has, the more expensive it will be for developers to build a new apartment complex. In many cases, these regulations can be so onerous that they make building a new apartment complex unprofitable. Government regulation can also affect vacancy rates and market rents.