Finding the right land developer for your property is a major concern. A single misstep at this point, though, can lead to a world of trouble. Here are a few mistakes that developers often make. If you see any of these, that’s a good sign that you need to look elsewhere:
- Not enough funding. Land developers need to have enough funding to keep the boat from sinking. If that’s not possible, then the entire project would collapse. So when you look through land developers, ask about their funding. There should be a funding triad. This includes the investors, bank financing and some developer money. 60 percent to 80 percent of the funding is typically shouldered by the bank. However, there are so many funding choices now that property projects have a much better chance of surviving these days.
- Underestimating the time and expense. This is a crucial part of the project. Everything hinges on the budget and delivery date. If these aren’t accurate, then the whole project can be compromised. Make sure that’s not the case by picking a land developer in Jacksonville that knows the market inside and out and has enough experience to tell you how long the project will last and for how much, with all the accuracy you need. If you don’t, this can cause major problems for you later on, one that could end up with one or two more of your investors pulling out.
- Your renovation project relies a great deal on your builder, says the Telegraph. So make sure the property developer has picked an excellent one to work with. If the team-up seems promising, then you know your land developer has the right resources and team to build a successful real estate project.
- Too personal. Land property that’s too personal or stamped with too much of a developer’s personal taste can alienate a lot of buyers, resulting in poor sales. Make sure the design matches what the target audience wants.
- Not quality. Using cheaper or faux versions of oak floors or tiles can put a lot of buyers, especially if they know great from fake whenever they see them. So don’t risk hurting your future sales by going for cheaper alternatives. Invest in quality instead.
These mistakes should help you cull out great developers from the less than stellar ones. Keep them in mind when you start looking for property developers.
Vallencourt Inc. offers a range of commercial and residential construction services. Contact us for more details!