If there is one ‘safe’ investment, it would be real estate. Consider for a moment how the population is growing exponentially but even with a country with as much land as the United States, there is only so much to go around! While so many real estate developers are homing in on residential properties, there is a growing number of property developers who are recognizing the need for commercial developments.
With cities being full to the point of being over populated with nowhere to expand, that leaves only suburban and rural properties to consider. It’s a lucrative venture, but one which should be better understood before investing in. Here is some of what you’ll need to start a commercial property development company.
It Starts with a Niche
Although you might consider commercial property development to be a niche in the realm of property development, you can actually zero in a bit more on specific types of commercial properties to develop. Sometimes you will be looking at developing huge malls and other times perhaps just a series of retail establishments, individually located. For example, commercial buildings for individual insurance agencies, curb stores, gas stations and other types of businesses located by themselves as opposed to strip malls. Your niche is commercial development, so within that you can specialize in various kinds of properties.
Contract a Team of Experts in Various Fields
As a commercial land developer, you are for all intents and purposes, the organizer and financial end of the actual work to be done. You will probably not be the builder or the surveyors or the site crew. You won’t be running utilities or installing underground cables. You probably won’t even be the architect or civil design expert. Those are contractors and subcontractors you will want to have on file to contract. For example, when it comes to surveyors or structural engineers, you would want to work with a team like Civil Design, Inc. Always opt for the best teams that come highly recommended so that you know your development will be amazingly designed and up to code.
Obtain Funding and/or Financing
While you may have the initial financial resources to incorporate your property development company and get the ball rolling, so to speak, unless you are a Donald Trump, you will necessarily need funding and/or financing when you begin developing the property. With a well-written business plan, you can probably get financing from a lender, but maybe you also want to sell shares in your company so that you are not working with borrowed funds. No matter how you approach it, you will need money when it comes to actually buying and developing that commercial real estate.
There really is money to be made in the field of commercial land development but again, it all starts with a plan – a business model. Once you know what types of commercial properties you want to develop and have a good working knowledge of prospective tenants or buyers, you can get the ball rolling. There is a real need for commercial property, so now it’s up to you to find ways to develop them. This is just the beginning.
