• The Investor's Edge
    REAL ESTATE DEVELOPMENT
    Gold in Our Modern Economy
Real Estate Investment Opportunities
Real Estate Development

The world of real estate development has proven quite lucrative in modern society. With urbanization and development of remote areas happening hand in hand, there are several opportunities for anyone to invest. A real estate venture can include several areas such as land purchase, construction, complete renovation, or rehabilitation.

Ways to Develop Land or Small Lots

There are several ways to invest in real estate. The most common way is to go through the full process: obtain financing, purchase the land, develop the plans, get the building permits, construct the property, and then either sell or rent it. Others go for the alternative option of just acquiring the land, sub-dividing it into smaller lots, and then selling the lots for a substantial profit.

Return on Investment

Irrespective of the real estate development option you choose, as long as you are conservative with spending and follow current market trends, you can consistently reap considerable profits. Returns on a real estate investment can be instant when property is sold, or it could come annually through leases, or monthly through rents that can be used to pay off the mortgage.

Risk Factors

Keep in mind that there are several risks involved in real estate development that could result in a failed investment. One of them is a low demand to rent or buy, or a sudden decline in the market due to unpredictable reasons such as the 2008 global financial crisis that plummeted housing prices. If a financial crisis is imminent, a bankruptcy lawyer may offer solutions to minimize the damages to an investor's portfolio.

A Team Effort

Real estate development is usually more of a team effort than a private venture. This means that for an organization or individual to be able to make the most out of their investment, they need to recruit a great team of professionals and promote their ventures aggressively. This can prove to be a costly and timely affair. Hence, real estate development is often considered as a high risk, high reward venture.