1. Location is the most important factor only if you understand why
When people say location is the most important thing, then you must ask yourself why? Some people think that buying a property in a prime developed location is the best thing to do but that’s not actually right when you are a developer as you won’t have enough room to increase the property price. Instead buying in a potential area that has great plans for development is the key here as when it is fully developed all the area will get a nice jump in price anyway
Being near institutions, public transportation as well as eco-friendly locations is an important factor to consider when trying to sell the property, Top developers mostly buy what others would think is a bad investment, little do they know it will turn up to be great locations that will enable them to make a huge return on investment. Understanding how to spot those locations is crucial to becoming a successful property developer.
2. Make your money before you sell
When you are buying a property for development purposes it is good to know that every penny you get off the offered price will only mean that it will be more money to put in your pocket. At this stage consider getting the best deal ever to be able to maximise your profits when you finally reach to the selling point.
3. Master buying at auctions
Always look for auctions that you can participate in. It can be a great source for finding amazing deals. Learn how to bid properly and make sure you are paying only what you were planning to pay before the auction starts don’t get tricked trying to win the auction at any price otherwise you will end up paying for an overpriced house. Let everyone bids first and you bid at the end to keep the price low.
Don’t worry if your bid didn’t reach reserve. You can always negotiate with the person selling the house after the auction as they are definitely interested in selling if they didn’t they wouldn’t participate in the auction from the beginning.
Being a successful property developer is not the easiest thing in the world if you do not know what you are doing. There is a risk of losing all your money and even getting in debt or you can make a lot of money out if just make sure to do your research before buying any house to be on the safe side. Include these important points in your research for basic understanding.
Search for other properties prices in the area you are trying to get in.
If the place needs any repair/remodeling make sure you know how much it will cost you to fix the issues or do an upgrade.
After calculating everything find out who will you actually be trying to sell the property to and be realistic on how much you will be able to sell it for.