California real estate is complex, yet it is potentially lucrative for developers who know what they are doing. Real estate development can be a costly endeavor, but it can be an incredibly profitable one if done the right way. Before investing a significant amount of money in this field, it’s beneficial to understand what the real estate development process involves and how to avoid problems along the way.
Development is often a more attractive option for investors than buying property because it holds the potential for higher profits than some turnkey properties. While there is a certain amount of risk involved, the reward can be great. There are three stages to the real estate development process, including:
Developing property means either modifying structures that are already built and previously used for another purpose or building structures from the ground up. The pre-development process means doing the proper research into what that specific project will require. This stage also involves getting the proper financing lined up and analysis of the specific property and land. It also requires lining up the right team, including subcontractors and others.
Those hoping to start in real estate development in California will need to educate themselves as much as possible in this specific field before they begin. Experience is crucial, as is research, support and knowledge. It is also critical to have legal guidance at every step. With the amount of time and money invested in these projects, a legal ally can help a developer with everything from contract review to dispute resolution.