There are those who dip their toes in the world of property development and those who dive head-first with an entrepreneurial mindset and a heap of ambition. If you fall into the latter category then you need help with more than how to sell a house; you’ve probably already achieved that countless times. If you want to know how to progress from selling the odd property to building a sizeable empire for your property development itch, here are some tips and tricks to help you take your solo business to the next level.
Do some research.
That’s what you’re doing right now, but you need to go further than taking advice from articles. You need to properly educate yourself by reading further about the topic, talking to successful property developers who can tell you what they did next when they were in your position, and even enrolling in online courses. This research and training shouldn’t cost you the earth; you should just be taking in all the ideas that apply to your business model and then putting them into practice.
If you want your business to succeed then you need to be brave and go for the investments which will give you the biggest profits; you need that extra money if you want to keep investing in better properties and turning them over for higher profits. Think about properties that fall outside the norm in terms of aesthetic and location. You could look into some mountain homes for sale because such properties have immense growth potential in terms of value. If you want to rise above a “comfortable” business selling properties in a local, medium-price area then you need to be prepared to step out of your comfort zone and invest in highly-coveted properties. If they’re highly-coveted then there’s huge potential profit for you there. It might take more work, but if it was easy then every property developer would be swooping in to get those precious properties.
Prepare to fail.
There are risks when it comes to property development, much as there are with any business model (especially when you’re the owner and sole investor, in this case). You need to be prepared to fail because there’s always the risk that you’ll invest a huge sum into a property and not find any suitable renters or buyers. The key to running a successful property empire is to always have a backup plan in terms of additional money, additional properties, or an exit strategy; even if your property empire is well established, you might still make a bad call at some point. You need to ensure that the backlash doesn’t cripple you.
Buy for the right price.
We’ve talked in this article about climbing the ladder by using your profits to buy ever-better properties, but the key is to remain calm and level-headed. Business owners know that you have to spend money to make money, but they try to minimize the amount they’ll pay for the resources they need. You should be doing the same with your property development business. Don’t take the first price you’re offered just because the property is perfect. You want to maximize profits, and you’ll do this by haggling for a cheaper price. You make the money when you buy and not when you sell.