Real estate redevelopment is a growing industry that can be intimidating for newcomers. There are some key steps you should take before starting on this path such as determining if it is the right industry for your investment and doing your due diligence.
Purpose and Mindset
Having the right purpose and mindset for real estate redevelopment means knowing why you are getting into the industry, what you hope to accomplish and how much work you will put into this endeavor. This is also where you determine your niche. Steven Taylor, for example, focuses on redeveloping properties into multi-family living complexes while other investors might choose retail centers or recreational parks.
Plans and Finances
You will need to develop a business plan to help guide your investments as well as show lenders that you have researched the market and know what metric you will use to define success. This plan can help determine what you have in terms of funding and collateral to make your first purchase. Once you develop a portfolio as robust as that of Taylor Equities, you can use profits from past investments to fuel future ones, but to start out you will need to look for grants, loans or other investors.
Leads and Due Diligence
Once you have the first couple of steps done, it is time to start generating leads for both properties and investors. You can do this through social media marketing, direct mail advertisements, and even newspaper or radio spots. These leads will drum up business for your company and provide tips on properties in your area. It is also important to do your due diligence on these leads as well as any real estate you are interested in. This helps keep you from getting in over your head during the process.
Real estate development can be a rewarding career to get started in, once you have done some research into your purpose and options. You can generate leads, do your due diligence and map out your finances if you have the right mindset and work ethic.