Playing the Real Estate Game
If real estate were easy, everyone would be doing it. This statement couldn’t be more true as many new players seem to think that real estate development is as simple as buying land, erecting a building, and placing it in the market. While these are all true, they are merely the proverbial tip of the iceberg; they do not represent the entire process of the business. This could be the reason why many players strike out early in the game and have nothing to show for it.
What is common among seasoned and the best developers however, is the hard work and persistence they have put in building their companies. Even those that come from wealthy families and have no problems with funding started at the bottom or were slowly eased into the business before they were given the reins. At the end of his or her training, a real estate developer would have already worn many hats, with the skills to fill in a variety of roles when the need arises.
Whether it’s the job of the architect, the engineer, the contractor, or the lawyer, a real estate developer must have working knowledge on all of these things, not only to ensure the completion of the project but to maximize its potential for profitability. Logically speaking, the time required in order to have a grasp of these things is what hinders new players from playing the game.
The other side of the coin is money. If one does not have time to know every single thing about the project, he or she is always at liberty to hire professionals. And this is yet another roadblock that limits the pool of real estate to players who already have the education, training, work background, and contacts of professionals.
It may sound unfair but it actually isn’t when you realize the kind of wealth real estate can produce.