The kind of misconceptions that people have about real estate developers are baffling.
Outside the strenuous and, at times, a risky cocoon that real estate developers live, people think that we merely sit on piles of cash while playing chess over expensive drinks waiting for the next big deal to land.
Laypeople fancy that real estate development is easy to mint money without sweating, and the misconception can never be further from the truth. The kind of work we go through is occasioned with risks and pitfalls, and every time you see and admire a beautiful apartment, there is blood and sweat beneath its success that you cannot see from the beautiful facade.
The Realities of Struggles in Real Estate Development
Real estate development is not easy
For people who fancy that real estate development is all about throwing money on a project and waiting for profits, their idea cannot be further from the truth. The procedure requires extraordinary hard work and dedication through every process. It is stressful because you have to foresee the probability of landing buyers way before breaking the ground.
Real estate development is always profitable
Laypeople who imagine that the investment is always full of profit are in for a shock. Despite having long-term gains, it is not short of losses once in a while. The shifts in the market over the years are unpredictable, and without careful prediction instincts, it will be hard for one to reap from real estate development.
Real estate development is a straightforward procedure
Unlike what most people think, real estate development is not a linear process, and there are no guarantees of success. Murphy’s Law of “Whatever can go wrong, will go wrong” always apply whether it is constructed from zero or renovation of a property. You will go through challenges like material delays and contractors executing poor quality work and jeopardizing the success of your project. Therefore, you should be very creative and full of problem-solving skills to negotiate the challenges that real estate development will bring your way.
You are always in charge
Unlike what many people imagine, Real estate development requires an extensive collaboration network. Firstly, the developer must connect with agents who will help them acquire the target property. Secondly, they have to collaborate with investors or bankers to finance the property acquisition, and the next phase is constantly liaising with architects, suppliers and contractors. The developer should also liaise with government officials who are always in charge of the overall project’s momentum.
