Sometimes newcomers to the industry can drop in with new ideas that shake up the industry while generating wildly successful profits on developments people just seemed to be waiting for someone to offer. Yet most of the time it pays for aspiring developers to listen to advice from industry veterans.
Advice from Real Estate Industry Veterans to Aspiring Developers in Southern California:
- Choosing a sector (residential, office, industrial, etc.) doesn’t matter. What matters is getting started. Start somewhere. Start small and then specialize in the sector you choose.
- Look for motivated sellers. It’s the one element that is the same for every happy real estate deal.
- Don’t be completely dismissive of purchase contracts that seem complicated and difficult. Distressed properties often come with these types of complications, but that also makes them a great buy in many cases.
- Don’t act as your own broker if you want the best deals.
- Avoid markets with shrinking populations.
- Try to fall in love with the numbers involved in the deal rather than the view or the aesthetics of the building. Many of the most profitable projects started with the purchase of an ugly building.
- Don’t forget to consider serving the community through real estate projects, but doing so is only beneficial if the project also makes money.
- Be a tough trader and a hard negotiator. There’s nothing wrong with that. But don’t be a crook.
- Push negotiations with the seller until they say, “no!” That way you know exactly how much they’re willing to give.
- Keep an eye on new businesses. Many don’t make it and need a quick sale – which can make for a great profit for a savvy buyer
If you need assistance with real estate transaction or property developments in southern California, please contact one of the real estate attorneys at The Law Office of Retz & Aldover LLP.