Adrian Zenere Co-Author: Amber Zenere Basic PLUS Author | 10 Articles Joined: April 19, 2008 Australia Real Estate Development – The Secret You NEED to Know If You Want to Become a Property Developer

We’ve had a few people tell us that they really want to become a successful Real Estate Developer but aren’t sure if they have what it takes. So here’s some information that we thought might help…

Having our own architectural practice means we’re able to work with some of the most successful Real Estate Developers in the business and observe first hand exactly what type of mindset it takes that allows them to build property empires and accumulate massive fortunes.

Many studies have concluded that each one of us has a wealth blueprint. From our earliest moments our views towards money are conditioned by the sources around us like our parents, friends, relatives, teachers, classmates and the media. This programming ultimately influences our wealth accumulation.

We found that part of creating a ‘Developer’s Mindset’ meant that we needed to first remove any blockages that could hold us back from achieving our true potential. These blockages can be physical (a real injury), emotional (being judged or rejected), mental (not having language skills) or spiritual (taking certain teachings to their limit). Whatever its type – these blockages can be like a big rock in front of you that impede your forward progress.

The problem is – it isn’t always easy to identify these blockages. We sort help from internationally renowned Personal Development coach Paul Blackburn and during his Mental Toolbox he explained to us that it’s our money beliefs that can hold us back. Paul classifies people’s money beliefs as:

– It’s Easy: These people believe that there is never enough time to take advantage of all the opportunities they see lying around. If you can, hang around these people, their attitude may rub off!

– It’s Hard: These people grew-up hearing ‘we can’t afford it’, their catch cries include ‘money doesn’t grow on trees’. They believe money is hard to come by and even harder to keep.

– Easy Come, Easy Go: By being in ‘lucky’ situations, they find money both relatively easy to make and ridiculously easy to blow. They have a roller coaster existence, characterized by the expression ‘easy come, easy go’!

– Struggle: These people believe that it’s not OK for money to just turn up – It must be earned. They typically utter ‘another day, another dollar’!

– Always Broke: ‘Money doesn’t go as far as it used to’ these people will often say they believe wealth is immoral, wrong or shameful.

– I’m Powerless: These people feel they are powerless to earn more, complaining ‘I can’t, it’s too hard’. As their parents usually gave them too much, they never learned to make an effort themselves.

– Drama Queen: They are always broke because there is always some earth shattering money difficulty occurring.

In the first eLesson of our RED Club mentoring program we talk about how we had to change our money beliefs and reprogram ourselves so we could attract an abundance of wealth. We also talk about the mental habits as well as the amazing financial and business habits of the Rich that you should seriously consider adopting if you want to become a successful Real Estate Developer.

Many people have tried Real Estate Development in the past however not all of them have been successful. Some have failed miserably simply because they didn’t have the right mindset to begin with. This step shouldn’t be overlooked… getting our mindset right was the underlying fundamental key element to our success.

Jim Rohn, the renowned American business philosopher wrote, “The most important part of becoming a millionaire is the person that you have to become to accumulate a million dollars in the first place.” Likewise, many financial advisor’s will say, “The first million is extremely difficult to acquire, but the second million is almost inevitable.”

This is a great insight – you will need to develop a different mindset and different habits from the average person in order to become a successful Real Estate Developer. By becoming this kind of person you also become the kind of person who can then earn the second and third million. If you happen to lose all your money, you would be able to make it all back again because you have become the kind of person who can make a million. Essentially, by adopting the habits of the Rich and the mindset of successful Real Estate Developers, you can become one.

If you just sit and read this, then nothing is going to happen for you. You need to roll up your sleeves and get moving. If you want to change your situation you must take action because ahead of any other requirement is your personal motivation. Only then can the money follow!

Remember… your success lies in your mindset. It all starts with the quality of your thoughts! If you have positive thoughts, you’ll have positive results and if you have negative thoughts you’ll have negative results. You must first believe you have the ability to create successful and profitable developments before it can ever happen. Do you have a Property Developer’s Mindset?

A Guide to Being a Top Real Estate Developer

If you have designs of becoming the world’s next top real estate developer, you perhaps couldn’t have picked a better time to consider this field. Even with the market’s downturn and shaky economic times afoot, this field still holds a golden opportunity for potential. To take the dream and make it reality, you will need to equip yourself with several things and you will need to have some skills highly sharpened.

If it’s your plan to go it alone with your own funding and credit, becoming a wining real estate developer will also require these skills:

Ability to read markets – The job of the real estate developer is to purchase property and then develop it to turn a profit down the road. This can be a tedious undertaking that involves a great deal of time. In some areas, developers buy land and hold it for quite some time, waiting for the market to be just right to build. Market research skills and an ability to read into trends within a target community are a must here.
Ability to negotiate deals – For a real estate developer to really succeed, he or she needs to be able to buy land at a low price and develop it for a high return. This takes serious negotiating skills and the know how to gauge when it’s time to walk away.
Ability to garner financing – Even for the independently wealthy, having the backing of investors or banking institutions is a must for real estate development to be successful. To this end, a good real estate developer also needs to have a firm handle on financial management, business management and economics. This is why many colleges have founded programs geared specifically to real estate development.
Ability to follow through – Real estate development doesn’t stop when a land purchase is made. The work, at this point, is only starting. To carry through, a developer needs to create a plan for the site, gain proper approvals for construction, obtain financing and then see the construction process through to the end. The job of a top real estate developer is not completed over night.

Multiple Facets of Real Estate Development Jobs

Since the real development business is multifaceted, estate development jobs cover almost everything related to immovable properties from renovation and leasing out through procurement of land and buildings. Another aspect is sale of a developed portion of the estate to prospective clients.

Real Estate Development Responsibilities

Basic responsibility of the real developer is to coordinate the activities relating to estate and at the same time converting the ideas giving them practical shapes. Of course one should not confuse the term with “building”. A developer would buy land, finance deals, and then transfer the task of buildings to the choice builders for completing them. Most often the building job is entrusted at a fixed cost. In fact the developer’s responsibility is to develop the real estate from beginning to end.

Training and Qualifications

Although no hard and fast standards have been prescribed for taking up the developer’s role, yet certain amount of innovation and creativity is the essence of the character of a developer. Since the developers take the greatest risks involved in creation and renovation of any real estate by providing the finance, they are also likely to get the best rewards if the project turns out to be successful.

Naturally many agencies across the globe both online and offline are trying to cash on the high competition in developers’ market by providing training and classes. While one may not find such colleges and institutions in the traditional college directory, they do exist and many of them also provide online education and degrees for prospective real estate developers. Bachelor’s degree program is the only comprehensive training program available for aspirant developers.

Real Development Job Counterparts

Despite being highly innovative and unique, the job of the estate developers cannot be accomplished without working in conjunction with numerous counterparts such as the architects, planners, inspectors, engineers, contracts, agents for lease, and various others. Real development jobs are considered to be integral part of town planning under the law of many developed countries like the U.K.

Ways of Getting the Real Estate Development Jobs

Once again like the academic and technical qualifications required, no hard and fast specifications have been made in respect of the ways of getting one of the decent paying real estate development jobs. Coming from multiple disciplines like brokerage, mortgage, consultancy services, construction works, lending, legal services, as well as architectural services, the developers could have divergent ways of getting to one of their desired jobs.

Real Estate Development – Two Essential Keys to Building a Successful Property Development Business!

When it comes to real estate investing very few investors actually look at building their property portfolios as a real business. They need a shift in their way of thinking and to approach real estate investing more like an entrepreneur.

In our opinion two of the essential keys to running a successful Real Estate Development business are using great systems and forming great long term relationships.

Entrepreneurs use proven systems and leverage off others to run their business effectively and they view their business as separate from them. They realize that they are not their business and see their business as the end product. A property developer who understands that, has a real opportunity to become very successful.

When you realise that real estate development is a business and that your business is your product, you can then start to work on building your business. To build a successful real estate development business you will need to change the way you think and your approach to real estate investing.

We believe that the ultimate real estate developer is what we call a ‘Real Estate Development (RED) armchair entrepreneur’. You see, the traditional property developer still thinks that real estate development is a job. They believe that time equals work and work equals money, whereas a RED armchair entreprenuer believes that time equals equity and equity equals freedom. In other words if RED armchair entreprenuers spends the time to build equity it will allow them to get free of the business and if they want more freedom they build more equity.

Traditional real estate developers still believe that they need to do the work and be part of the system whereas RED armchair entreprenuers believe that they should build great relationships and have others do the work. This enables RED armchair entrepreneurs to build their businesses much faster.

When the business owner is also the hands on developer it will usually require much more hard work to make the business successful. It is much smarter for anyone considering entering into the industry to set up a business where the systems run the business, and let others run the systems. In other words the systems and other people work for you so you don’t have to.

Working on your business allows you to work on the things that really matter and that will give you the biggest return for your efforts. RED armchair entrepreneurs use systems to streamline tasks and avoid chaos so they can concentrate on growing their business efficiently.

When the systems are being run by others RED armchair entrepreneurs are able to focus their attention on innovation. They can capitalize moments of inspiration and through effective communication they’re able to turn their dreams into reality.

If you think about some of the great property developers, names like Donald Trump will typically come to mind however one of the biggest property developers was actually a school drop-out, Ray Kroc the founder of McDonalds. An entrepreneur with an incredible vision who worked on his business and not in his business.

You see Ray never considered that he was in the hamburger business but rather that he was in the business of real estate. Ray secured development sites in great locations, put fast food restaurants on them which he franchised. Ray Kroc died on January 14, 1984 and was worth an estimated $500 million.

YOUR ULTIMATE GOAL

As business owners and proud parents our most important asset is time and as much as we wanted to be actively involved in real estate development we knew we didn’t want to be traditional real estate developers who worked long hours trading their time for money.

Instead we looked at the big picture and applied the same entrepreneurial skills we had developed in our architectural practice to property development. Real estate development had to contribute to our ultimate goal of achieving financial freedom and giving back.

We knew that when we achieved our ultimate goal it would give us more choices so we could start to live our dream lifestyle according to our core values and with passion and purpose.

To be successful at real estate development you need to connect with what is most important to you. As soon as you start thinking more like a RED armchair entrepreneur and set your ultimate goal or the dream that drives everything you do the more real estate development will give you a sense of direction and purpose.

Your ultimate goal will make you want to jump out of bed in the morning and stay up late, it is your innermost driving force. It will allow you to live your life intentionally, rather than randomly and it will motivate you to achieve your full potential.

Setting your ultimate goal has nothing to do with real estate development. It is about how you want your life to be like.

It isn’t about material things, or about others. There is no right or wrong answer because it will be different for everyone. It is about your life so it is, in essence, what is true for you. Real estate development is only a vehicle that can be used to support your ultimate goal.

To set your ultimate goal, you should start off by asking yourself questions such as:

* What do I need in my life?

* What do I want in my life?

* How do I want to live my life today?

* How do I want to live my life in 2, 10 or 20 years from now?

* What has given me great joy so far in my life?

* If I had a magic wand and my life could be anything I wanted it to be, what would that life be like?

Knowing your ultimate goal gives you the ability to make conscious choices that are consistent with what is important to you, your core values. It will help you set your life’s purpose and put real estate development in its proper perspective.

Real Estate Development Financing Creates Critical Situation For Developers

The real estate development industry has created a negative impact on today’s economy. Throughout the United States real estate developers are experiencing many concerns with their development projects. These concerns are mostly related to the lack of financing available and lenders unwillingness to extend or restructure current obligations. Whether you are a residential developer, homebuilder, commercial developer, or any other related real estate development professional without the proper financing terms and structure the projects will remain stagnant or be sold.

The news has hit Wall Street and Main Street that real estate developers and homebuilders require financing, restructuring, and more time to manage through this cycle. Lenders, investors, and other financial institutions have scaled back their lending programs to developers and builders due to the risk associated with real estate development. Many real estate developers rely on financial leverage to make their respective projects successful. In today’s economy the term “leverage” has been a word many people feel has created this current crisis.

The impact has created partially built stagnant projects filled with graffiti, damages, and hazards facing the immediate communities. The citizens of these communities are demanding that police patrol the projects, fire departments monitor access to water, and local municipalities ensure that the integrity of the community. The cities are also being negatively hurt because they relied upon projections of tax revenue created by these real estate development projects.

The real estate development industry has developed alternative contingency plans to adapt to the current real estate environment. Some of the most successful alternative strategies include; raising equity, developing joint venture partnerships, negotiating with their current lenders, and to secure additional debt. Real estate developers that can raise equity can reduce their leverage position and can satisfy lenders needs for paying interest or paying down principal. Real estate developers in turn give up equity into the project. Joint venture partnerships entail teaming up with other real estate development partners or investors to provide additional equity or relationships that create value for the project. Negotiating with lenders has also proven to be successful; however, many lenders are having a tough time with how they restructure the loans. Finally, securing additional debt to either refinance the entire project or pay down the existing debt and hold funds for interest carrying costs has been a strategy for real estate developers.

There are other issues and concerns facing real estate developers besides financing such as finding homeowners, builders to develop projects, and end tenants to occupy the projects. The residential mortgage industry has been experiencing an enormous increase in bankruptcy filings, foreclosures, and lack of funding available to create mortgages to buyers of new homes. The government has been creating programs and ideas to help keep homeowners in their homes and to also stimulate new buyers to the market.

The retail sector of commercial real estate has seen retailers scale back their operations in terms of growth and expansion. The retailers are also struggling to secure financing for tenant improvements for their locations. One of the most troubling concerns for retailers has been the lack of consumer spending. Office tenants have also had to scale back their operations, reduce staffing needs, and cut expenses as much as possible. Office tenants are also experiencing opportunities to move into more desirable locations at more affordable prices causing vacancies in many submarkets.

The recent economic indicators and stock market trends are showing some signs of strength in the economy while others believe that the economy is still due for a slow recovery. As the credit markets start to thaw out and lend to real estate developers the projects will start to get back on track and create momentum. There will be many learning experiences real estate developers will take away from this current real estate market and hopefully will not repeat in the future.