Development is not construction, but that shouldn’t hinder you
A lot of developers are also builders, or former builders, who, aside from building just houses, have also spent years building a network of reliable contacts across a wide variety of construction skills. Throughout their years as builders, they’ve also had the opportunity to learn from other developers and understand both wins and failures from the inside.
However, that doesn’t mean the role of developer is restricted to builders alone, nor that being a developer means being a builder. While working relationships with builders and contractors is key to being a great developer, picking the right team can be the difference between a success and disaster.
Leadership
Buildings don’t just happen, they require a mastermind to motivate a team and manage the project from start to finish. You have to be able to recognise the skills and vision of others and help recognise that through financing, design, marketing, construction and eventual sale at the end.
Hiring
Having contacts with builders and contractors in general is great, but the key is to finding ones with appropriate skills and the ability to deliver projects. Even more important is to hire those who are willing to sit with you during the earliest stages, openly providing feedback and advice on time lining and budget.
Budgeting
While you don’t want to build something that is beyond the affordability of the market, you also shouldn’t sell yourself, or your hires, short. Finding a balance between the two is essential to ensure contractors are paid fairly, there are no dangerous shortcuts taken in the construction process and you are left with something that there is demand for. Seeking advice from financial advisors is highly encouraged, as it can help you better understand the market and any financial challenges ahead.
