I Heard a Real Estate Developer Bought a Large Plot of Land, What Are They Going to Do With It?
Real estate developers convert ideas from paper into real property. Without real estate developers, many of the structures that exist today wouldn’t be possible. This article takes you through what a real estate developer might intend to do with a large plot of land after purchase so that you can better understand this vital process.
What is the Role of a Real Estate Developer?
Real estate developers buy raw land, finance real estate deals to build on that land, build or hire builders to complete projects, and orchestrate the development of that land from beginning to end. The process is highly creative, as developers are responsible for imagining and controlling the development of a plot of land from its current state to the desired result.
Developers of land incur high risk—which allows them to reap the greatest potential reward. Property developers are able to rent out, manage, and sell properties to make a profit.
What Might a Real Estate Developer Do With a Plot of Land?
It’s important to note that real estate developers are not construction companies. In many cases, developers will only take on part of the process by sourcing property and getting plans/permits approved before selling the property to a builder at a premium price point.
However, developers can also be builders. A developer that is also a builder could purchase properties with plans and permits already in place to avoid the risk of failing to obtain proper approvals. In this case, developers can start construction on the development immediately.
From hospitals to corporate offices, football stadiums to apartment buildings, developers are responsible for coordinating connections between architects, city planners, lawyers, contractors, leasing agents, inspectors, and whoever else may be needed in the execution of a real estate development project.
What Makes a Development Successful?
In order for a real estate developer to successfully complete a project, an assessment of issues and risks is critical. Many factors can impact a development, including environmental, political, private, and economic factors.
To efficiently and appropriately set out to develop a plot of land, understanding and addressing these risks is standard and essential. Just because a developer buys a large plot of land does not necessarily mean that the project will be successful—it’s all about assembling the right team.
Who Do Developers Trust?
Real estate developers turn to building companies like Carlton Building Services to ensure that the construction portion of a job is done correctly. Specializing in the art of commercial renovation, developers have trusted us to build facilities with low noise and dust to keep landlords informed and tenants working on the job.
If you have further questions about real estate developers and the role they play in your community, feel free to reach out to us. We’ve been a trusted resource for healthcare building, commercial remodeling, and retail renovation in Virginia since 2017, and we would love to hear from you!
