Make Big League Winnings in Real Estate Development

Most people seem to think of real estate first when they think of investments. Perhaps that’s because real estate investment is one of the strongest forms of investment out there! It’s certainly one of the most attractive forms of investment, and it’s easy to see why. For a lot of people, it seems like a fairly simply thing. You find a property you think has great prospects, check out the viability of the neighborhood and the surrounding amenities, then you invest. Then you wait around for a few years and bam, you sell that property for a tasty profit.

Of course, things aren’t quite that easy. But still, that doesn’t seem like enough of a challenge for some adventurous investors – nor does it seem like the best way to make big bucks off the property market. Well, those intrepid investors may be onto something, because real estate development is something that could definitely see sky-high profits.

Successful real estate developers are among the wealthiest people on the planet; some of those ultra-wealthy real estate developers are among the most famous people around, and at least one of them is the current President of the United States. So there’s definitely a real thrilling element to this endeavor – but how do you get it right?

We’re going to take a quick look at some of the most essential things you need to consider if you’re thinking about getting into real estate development.

Research

Real estate investment and real estate development are two completely different beasts! Don’t go jumping into this without deepening your knowledge about investment, construction, business law, property types – among other things. There are loads of books out there dedicated to this subject, and it’s recommended you pick up a few of them. You should also consider doing some research into the beginnings of many successful real estate developers. This is useful, though remember that the real estate business has changed quite a lot since many of the biggest names got started in their business pursuits.

The type of real estate development

So you’re confident that you want to get into real estate development. But what type of development are you going to work on, exactly? Some people who are interested in this endeavor haven’t quite gotten as far as this in their thoughts; if you’re one of them, it’s time to look through the options!

Residential real estate is the most obvious type here. If you’re interested in this, then you need to know what type of housing is most popular in the area you’re scouting. If you’re in a city, then you’re probably going to want to look into condos – a series of apartments in the same building. Most people in the city are there for work, but don’t want to spend a lot on an entire house. Fewer people are buying homes these days, so this is worth keeping in mind even if you’re not so close to big cities.
Commercial real estate can be the easiest when it comes to design, but you also need to consider what kind of businesses you want to attract to the property. Standard offices will be fairly simple, but even then you need to make sure there’s actually demand from viable businesses for this kind of real estate in the area you’re interested in.

Working the land

So you think you’ve found a nice bit of land for some real estate development. But are you absolutely certain? These things are fairly difficult to tell with the naked eye. Just because someone is trying to sell you a piece of land as perfect for real estate development, you have to ask yourself a question: why hasn’t anyone developed real estate here, yet?

It could just be that you were lucky enough to stumble upon a prime piece of land that others hadn’t even considered. But don’t just assume this. Before you start buying land, get the land in question surveyed. You need to ensure that the ground is safe to work on, or that it’s level, or – if it isn’t level – if it can be leveled.

You may also want to look into landscaping to ensure that the land is ready for construction. Unless you’ve been hiding a landscaping degree (and a truckload of resources) from us, we’d advise you to work with professional landscapers. Bear in mind the type of land you’re dealing with, because this will determine what kind of landscapers you should be working with. Places in the southwest of the United States, for example, may require the expertise of desert climate landscape design.

Thinking business

You may only want to take this task on as a solo venture, something that doesn’t have any brand attached to it. In this sense, though it’s a daunting task, you want to keep things as fluid as possible, without many formalities surrounding things. You may only ever be planning to build this one development instead of continuing to make more afterwards.

But if you’re interested in developing real estate, you might not want to take this route. There are a lot of legal and financial difficulties you could get into that would be made more complex or even threatening to your personal life if you pursue the endeavor in this way. Your best bet might actually be to form a business entity for the project. You may think this would complicate things further, or even constrict what you can achieve. But the opposite might turn out to be true.

For one thing, forming a business will help secure your name to the properties you’re developing. It will also greatly reduce the risk you’re taking on. As you must know by now, real estate development is a big and risky investment! What if something goes wrong? There could be a turn in the market, or a natural disaster could cause devastation to the project. If you didn’t have the business liability protections and other insurance assets protecting you, the damages would hit your personal finances in a very big way. Tax breaks, strong insurance, limited liability, and a bunch of other protective means will prevent losses being quite so devastating if you form a business. It will also make marketing easier – and you’re going to need that to attract people to your properties!

Is University Worth It?

Studying for a degree used to be free for British students in the UK. Former Prime Minister David Cameron, who was born to a wealthy family, had the privilege of studying a degree at Oxford University. Once he had graduated, he pursued his ambition of becoming a career politician, and by 2010 he had assumed the highest office in the UK. Once there, he introduced legislation that increased tuition fees threefold. David Cameron, a man whose education was covered by the generosity of the British taxpayer, has now ensured that fewer working class students can attend university. Many are now faced with a difficult decision: acquire a degree and take on all of the debts associated with it, or start work and potentially resign yourself to not being as able to access graduate level positions. It is prompting many people to reassess the value of a degree. It is a massive investment and a decision that should not be taken lightly.

The situation in the US is, if anything, starker. The cost of attending an Ivy League University is now as much as $63000 per year. That sort of debt is substantial and could be an obligation for students well into their later lives. The decision to attend university is in one sense a financial one. Will such an outpouring of money produce of a return that justifies it? The answer may depend in part of what major you chose to study; research shows that in 2016, engineering majors were earning on average $64891 while those who had studied education were earning just $34891. The difference of $30000 is pronounced and reflects a trend. STEM graduates (Science, Technology, Engineering, Math) regularly earn more than people who studied the humanities. However, not everybody is naturally inclined towards such objective subjects. Whether they should study a STEM degree just because it will likely enable them to earn more money is contentious. Your choice of major can determine the rest of your life. Studying something you are not passionate about for financial reasons could easily be characterized as rather short sighted and shallow besides.

However, it is not just the subject of your degree that needs to factor into your decision. The internet has broadened the scope of modern education, and it is now possible to study for your degree online. Since you do not have classes to attend in person, you can choose which hours you wish to work and fit your studies around other areas of your life. You still get the benefit of a professor’s knowledge and guidance, but the whole experience is more flexible. This can also allow you the opportunity to work while you study and therefore get a start on paying back your debts. There are many programs now, such as FPU Online, which offer full degree programs at a much lower rate than many other private universities.

With every decision, there are necessarily going to be trade-offs. You just need to decide which ones you are going to concede, if any at all.

Retaining Assets In A World Approaching Paperless Currency

Ones and Zeroes

One of the greatest strengths of a global cashless monetary system is also one of its greatest weaknesses: computational technology. It’s easy to see why. A skillful enough hacker can apportion funds from one account to another, or totally delete money in an account where the account holder is at enmity with the hacker.

While banking systems seek to ensure security as much as is possible, and virtually anyone who reads this already has assets held in a bank account somewhere, there’s still security in the knowledge that you can withdraw physical portions of money as they are needed.

Should the world shift to an entirely cashless, paperless currency system dependent on computers, this will no longer be the case.

Keeping Physical Wealth

In order to overcome this approaching transition, many who have exceptional wealth are moving toward physical assets like property, art, or coins. Gold Krugerrands retain their value by dint of their composition: gold.

And, while it makes sense to invest in things like gold and silver—as value fluctuations can actually make buying and selling these precious metals a profitable enterprise in and of itself—there are also assets which can be purchased that aren’t and visible, and can also represent a dependable means of conserving wealth.

One way to find value in currency that isn’t digital is to purchase monies which are no longer in print, and quickly becoming more rare. The more quickly they disappear, the greater their value becomes as a piece of history. A denarius from the time of Caesar isn’t worth its original value; as an artifact, it’s actually worth much more.

The Zimbabwe Component

At BankNoteWorld.com, you can find Zimbabwe currency for sale from one of the most turbulent eras of the country’s history; according to the site: “These Zimbabwe Banknotes were printed in the hyperinflation period of Zimbabwe from 2006 to 2009.” Given that this three year period took place some eight years ago, these bank notes are quickly becoming more and more rare.

While it’s unlikely that the value printed on the note will be represented equally wherever such notes are purchased (the US national debt is several trillion dollars; it wouldn’t make sense for a trillion dollar Zimbabwe note to come even close), it is likely that the value of such a note will increase from the price at which it was purchased.

Of course it’s impossible to directly pin down how such an asset may appreciate, but with any rare commodity, it is to be expected that asset aggrandizement will gradually take place at the very least concordant with the rates of local inflation. Certainly, with items like the Zimbabwe note, the prime value comes in novelty and historical record. But that’s not to say some inhering value isn’t there.

Collecting Old Currency

Whether you’re buying gold Krugerrands to retain your wealth, or you’re just an avid collector of antiquated currencies, finding a location where such assets can be easily purchased, and are in large supply, can definitely help you in your search.