18 Sep Just Starting? Follow the Big Developers
Done right, property is a great investment but it can also be a risky investment. If you’re considering giving investing and developing a try, here’s how to get ahead of the competition in real estate. In this blog, we’ll discuss how investors with modest budgets and the flexibility to move fast can benefit from following the big developers and get in on the action ahead of most other investors.
Why watch the big developers?
- They have the buying power to purchase the best properties. But, they don’t necessarily want “all” the properties in their target area, leaving the door open for the next wave of investors. You definitely don’t want to be on the tail end of the wave, though, picking up the scraps.
- They usually go for larger development projects, leaving great properties in the target area that would be perfect for a smaller project – and since new developments sometimes spur people to put their properties on the market, you could get your hands on a real gem that wouldn’t have been available otherwise.
- They are experienced and know what the market wants.
How do you find out who’s developing property in an area you’re interested in?
- Talk to local realtors
- Look at advertisements or pre-sales
- Physically tour the area and look at builder/developers’ signs on the project site
The big takeaway here is that you want to complement their developments, NOT compete with them.
Obviously you’re not going to be competing with the big developers – they have resources that you can only dream of – but you can complement their developments. For example, if a developer is building an apartment building or condo complex, you could develop a property nearby that can house a retail space, pub/restaurant, coffee shop, gym, preschool, or a startup incubator-style shared office space.
If you find your niche in creating complementary developments, you can make a killing!
Only adopt this “follow me” strategy if you’re ready to move fast.
When big developers move in, it’s a sign that area property prices are going to go up if they haven’t already, and prices will only continue to go up while you’re scrambling to find a property and get financing.
Following in the footsteps of the big developers isn’t the only way to make it big in real estate, but it’s a way to ride the wave of a changing area, at a nice profit (not to mention the satisfaction of being part of urban renewal).
Social: Property is a great investment (done right), but it can also be a risky investment. If you’re considering giving investing and developing a try, here’s how to get ahead of the competition in real estate by closely following in the footsteps of big developers.
#letthemtakethefirststep #theycanriskit #complementdontcompete #findyourniche #movefast