Real estate development is a very tough business to get into!
You need a lot of money or great credit!
You also need a real estate development business plan if you are going to draw in any big-time investors!
Investors are going to land the big deals!
A well thought out and written business plan will help you in two ways!
First and foremost, it will be a great indicator if you should take your business idea forward or not.
Second if it is a viable business idea then it will definitely help in securing investors!
Real estate development is a bit like the stock market! If you gamble on a long shot and it does well there is a lot of money to be made. On the other hand, if you gamble and guess wrong you can lose your shirt, pants, and maybe even your underwear!
I worked with an individual in an area they were considering placing a Walmart within the next couple of years. This person had an inside track, or at least he thought!
He had property right across the road from where it was to be built.
Speculators were already offering him a lot of money on his property although nothing had been developed yet!
He chose to go forward and develop the property and then try to sell it!
Well after investing a ton of money on what seemed like a sure thing, the Walmart deal fell apart and the surrounding property became almost worthless.
Putting together a sound real estate development business plan is a tall order to fill but must be done.
One of the first things you must do is make sure that you can present yourself, and team if you have one, as extremely knowledgeable about the real estate business.
In this section of your business plan you must be able to demonstrate you have the ability to understand the current market and how by developing that property it will draw in more than sitting empty!
Think of an individual that has millions of dollars to invest in something! By investing in your project will he make more than he would if he just put his money in a bank! On top of that what is their risk?
The management team section of your Real Estate Development Business Plan is one of the most critical of all.
In most new businesses identifying the customer and how you intend to get them to purchase your product or service is the most critical. However, in my opinion it is your understanding of what adds value to the property, which the contractors are that can perform the work and who the buyers would be when it is finished.
This type of knowledge in the real estate business is the most valuable!
It takes a lot of networking with the right people! When I say the right people, I mean just that! I don't know how many times I have been promised something by someone that they could not deliver on! Burn me once, shame on you! Burn me twice, shame on me!
Reputation is also a key element of that networking group!
As far as sources to help you put together a real estate development business plan in the right format that an investor is going to want to see it in is Business Plan Pro!
Business Plan Pro has been the number one business plan software in the industry for over ten long years. It is the business planning software that I use and will continue to use!
Thank you and may God bless you!