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Property development involves purchasing land, obtaining permits, designing and constructing buildings, and managing the process from start to finish. If you would like to launch your own real estate development company, here are the steps you should take.
Conduct Market ResearchFirst, conduct a thorough review of the market you’ll be targeting with your services. This will help you identify potential areas for development, determine the level of demand, and analyze the competition. Think about where the real estate domain is headed (i.e. what the future portends for it). Your aim here is to establish that a property development business is worth starting up, given prevailing and possible future conditions. If you’re able to confirm this, you may go on to the next steps.
Develop a Business PlanAfter researching the market, your next move should be to draw up a business plan. It’ll serve as a roadmap for your company, defining what it is, what it does, and what it exists to achieve. A proper plan of this type will outline your goals, strategies, and financial projections for your company. It should also include information on your management team, marketing strategies, and funding sources.
Register Your BusinessIf your business is going to be recognized as a legal entity in Nigeria, you have to register it with the Corporate Affairs Commission (CAC). In addition, you’ll want to register with the Real Estate Developers Association of Nigeria (REDAN). If you have both these sorted out, you’ll be able to take on contracts from both private and public sector concerns.
Obtain FinancingReal estate development is almost always a capital-intensive business. Unless you already have a deep pocket, you’ll need to secure funding from external sources. You could seek a loan from traditional financial institutions; look for individuals or organizations willing to invest in your projects; or find partners who will supply financial resources. A solid business plan and decent financial projections will increase your chances of getting backed by investors.
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Assemble a TeamReal estate development encompasses many different disciplines, so you will need to assemble a team of professionals to help you. This may include architects, engineers, surveyors, accountants, electricians, carpenters, and others. You will also need to hire staff to manage your day-to-day operations.
Acquire LandWith funding locked in, you can go on to acquire land for your development project. There’s also the option of purchasing an existing property, which you may then renovate and resell. Before doing any of these, you will probably have to obtain permits and approvals from the authorities concerned. Note that you could begin by handling lower-profile jobs like installing and repairing plumbing systems or repairing broken sections of existing buildings. As you become more familiar with the real estate project terrain, you may devote more time and resources to buying or constructing new property.
Design and BuildAfter buying land and securing regulatory approval, you can begin designing and building your development project. This means you’ll be working closely with your architects, engineers, and contractors to ensure that your projects meet your specifications and are completed on time and within budget.
Market and SellOnce your development project is complete, it’ll be time to market and sell your properties. You will work with real estate agents and advertise through various media channels (old and new) to attract potential clients. You will also manage the sale process and handle all necessary paperwork and legal requirements.
Final WordsStarting a real estate development company can be a complex and challenging process, but with the right planning and execution, it can be a highly rewarding business venture. Featured Image Source: Stone Real Estate
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