Are you thinking of investing in real estate? We share guidelines you need to succeed in this business.
Investors are increasingly embracing the business of real estate development - buying, selling, management and investing in properties.
Adnan Mpuuga, Chief Executive Director of East Lands Agency, explains guidelines to a new real estate developer.
Mpuuga says to be a real estate developer, you must have been a real estate business agent for some time. He says this helps you gain experience in the business.
Transparency and patience
Mpuuga says the real estate business requires transparency and patience because clients delay to make conclusive decisions which also affects the business.
Mpuuga says to have an operational business, you must have enough labour. Real estate business needs more than two people since properties are usually in different areas.
There are institutions offering courses in real estate business and evaluation so one can easily hire qualified persdonnel. “Qualified workers are always informative and updated about the business in terms of prime areas , prices and available clients , this helps the developer to maintain his or her business in terms evaluation ,” Mpuuga says
He adds that if you are a real estate developer you must be informative about the business you’re running. Here you can also involve other experts like civil engineers, business and management and also surveyors to enhance in more expertise in your business.
Mpuuga says capital is one of the most important things for an aspiring real estate developer, you must have enough money to invest in property .
“Money runs the real estate business the more you put in, the more you get more business.You have also have to invest time in this business and invest more in buying land or properties even when there are no availble clients during a certain period,” Mpuuga says.
He adds that after investing money, you have to start looking for clients or buyers without fail but you should also expect disappointments. It is hard to get serious buyers when you are just starting out.
“You must have an official address, in this business you must have different means of advertising like a website, social media and posta address,” he says.
Mpuuga says no matter how much local marketing you do, you need a web presence to attract and engage online leads. It may cost a little money but online advertising helps to save time instead of moving door-to-door and making numerous calls.
Allan Mulyowa, an investor, says a study tour is one of the most important thing a new real estate developer should do to avoid making losses in ghost assets.
“After getting an address, you have to carry out a study tour in different areas until you identify the areas where your services can suit best with availability of clients, He says'
. Mulyowa adds that while on study tour, you have to meet the stake holders and these include, land lords, property agents, local council’s chairpersons and land offices to verify if the property is in the right hands of the owner along with the tittles.
“You should also make a research on geographical history of that particular area. The study tour involves prices, targeted clients and the specific business suitable in that particular area industrial , schools or farming,’ He says.
He adds that it is important to become familiar with housing prices in the local market to assist in making wiser investment decisions once becoming a developer.
Mulyowa says looking for clients is the hardest part but the easy way of getting clients is networking with other colleagues and building bond with other members of the industry,” Mpuuga says.
He adds that at this stage is where the developer investigates properties based on the available clients before making any deal, this time the developer should be consulting some of their expert team.
“Generally, the following services will be required in order to assess the feasibility of the site and the expert team can provide you with an overview of any future planning or zoning changes in the area, which could limit your development in the future,” he says.