How to Carry Out a Real Estate Project

 

Thousands of people, investors and entrepreneurs around the world decide to work in the real estate market, being able to make a decision to go towards a common goal, which is to generate income with this economic branch.

Real estate investors do sometimes buy  properties, but more often they develop properties. The appeal of real estate development is the potential for higher operating profits during ownership and larger capital gains upon sale. It’s risky, but also rewarding when successful.

To get into real estate development, you need to understand the processes involved, and bellow, real estate developer Jack Bistricer explains the six general stages. Mr. Bistricer has been has been working on the development of real estate for dozens of years, developing numerous real estate projects in the United States, the United Kingdom, Canada, the Bahamas and Eastern Europe.

 

Feasibility of the project

 This variable leads the first stage of any real estate project, since before any work, purchase, or acquisition of a property it is necessary to analyze and study the feasibility that it may have. Taking into account the participation of real estate agents that allow a better analysis of cost-benefit and other conveniences.

In this aspect, it will allow you to recognize the following:

·         Market study: The analysis will give you the data to verify what is convenient for you to do in the project, design, structure, building and sales procedure.

·         Legal reports: Status of the property titles and the legality that it possesses. It will allow to verify the validation through reports and legal paperwork that the land to be acquired, or the built department has.

·         Soil and topography study: This is extremely important in countries, since it is necessary to verify the topography of the terrain in reference to whether it may be affected by some movement of tectonic plates.

·         Economic evaluations: A real estate advisor could give the verdict on the economic possibilities of the land or the acquisition of that property, as well as the financing prices and costs of future sales.

Project design

In this design stage are analyzed several points that will be of great importance for the future building. Some of the most relevant design aspects that Jack Bistricer highlights are:

·         Construction and structure: Through architectural plans and designs, forms of the project are proposed for its creation.

·         Location: In this case of starting a project from the beginning, the best placement of structures for the real estate work is analyzed based on design, both in the aesthetic aspect and at the level of civil engineering.

·         Road / social impact: The location and distribution of the future property purchased and built could affect traffic or otherwise it could get new road flows depending on the project.

 The investor must deposit all possible ideas to correctly channel the designs and engineering studies that meet the legal, physical and strategic needs set forth in the request.

Development

 They begin to develop those details that the construction entails, as well as the elaboration of plans previously placed in the designs.

Once the designs are validated at the architectural level, a budget analysis on the construction is carried out. Some key points of the development stage for a real estate project are:

·         Soil mechanics: The behavior of the layers of the earth's crust will be studied through the application of some laws of physics, in order to avoid possible accidents.

·         Topographic study: In the field of engineering, the topographic survey will be in charge of verifying the position taken between various points on a horizontal plane, thus being able to find stability on the ground.

·         Equipment and necessary material: It will be the study on different materials that will be used in the construction work, such as water and sewerage, paving and electricity, green areas and irrigation system, among other relevant aspects.

·         Approvals to build: At this stage, legal approvals to build are also started through a legal file outside of details.

Permission period: Pre-Sale and "Blank"

For any building or restructuring of a land, the necessary permits are needed, in order to start carrying out the previously designed and structured work. They are divided in two ways which will be:

Pre-sale: (Also called Private sale) The project is raised and ready to wait for permits. This stage is when construction and / or building authorizations are still pending.

Blank sale: This term is known when the investor or the real estate company obtains the certificate or the legality to build and build, but it has not yet started.

 Having the permits up to date will remove more of a headache, since they are legal procedures that the real estate company and the investor have to protect their safety before the law.

Construction process

This is one of the most crucial and vital stages of an entire real estate project. At a statistical level, the construction stage absorbs at least 60% of the expenses in the project. The reduction or elimination of errors is needed, since any slip will generate multiple expenses in chain. The detailed aspects of the construction stage are:

Green sale: The construction stage called green sale will be the one where the real estate project and the full building are built.

Control of works: The program structured by the construction company is controlled, as well as the fulfillment and verification of proposed milestones.

Preparation of contract for work: The mode of contracting is defined and the award of the work is made.

 Placement for sale

It is the last but not least step of any work or real estate project since once it is built or about to be finished, the decision and actions become either for the sale as well as to inhabit it.

When the project is dedicated to direct sales or you want to include it in the rental market, it is best to have the professional advice of a real estate broker. It will give you an analysis of both prices, feasibility or processes for sale or rent.

A real estate advisor will manage the entire sale process and / or type of lease that is desired. You can avoid legal problems or even readjust the rental costs based on the annual value that the property may have by viewing key points such as:

·         Location.

·         Accessibility.

·         Space in relation to square feet.

·         Exact value of the UF.

·         Number of bedrooms and bathrooms.

·         Value in relation to being furnished or not.

If you are thinking about investing, it is not enough just to know the Stages of a Real Estate Project, it is also essential that you know the benefits that you can obtain in terms of profitability according to the stage in which you decide to acquire Real Estate investments.

Do you want to invest in properties and have doubts? Jack Bistricer, the Chairman and Chief Executive Officer of the Talisker Club offers you a free first consultation.All you have to do is schedule an appointment.