Philip Goforth of Missouri is a construction and real estate development professional. In the following article, Philip Goforth takes readers on a journey through the processes of real estate development, including planning, construction, and the final touches.
When someone is looking to develop real estate, they are embarking on a journey that can be costly, but ultimately worthwhile. However, the many steps that are involved in the process may seem overwhelming to newcomers. Let’s discuss the journey of real estate development in an effort to gain clarity!
According to the experts in the industry, the real estate development process begins with a developer that has an established plan for the project, from beginning to end. The first step in this plan is often pre-development analysis, which is followed by the construction, and then finishing with the operation of the property.
In this article, Philip Goforth of Missouri discusses the three stages of the real estate development journey. This will provide insight on what each stage brings to the table of potential real estate developers, and why each one is highly important to the successful turnaround of a property.
Philip Goforth on the Three Main Stages
Those who are looking to start a new project have a thousand and one things to consider. When it comes to a business venture like developing real estate, this list of considerations can often come with considerable amounts of stress.
Philip Goforth of Missouri dives into the details below in order to clearly demonstrate what each stage looks like and why it is important to the journey of every real estate developer.
In any process, planning is often considered the most important step. After all, an ounce of prevention is worth a pound of cure. Real estate development is no different in this respect; the better a developer plans for potential risks, the fewer issues that will occur throughout the process.
Philip Goforth of Missouri says that some of this includes being sure that the property itself breaks no laws, along with properly securing and filling out the necessary permits for the construction stage. Typically, a bank loan or an investor is needed to fund this step, though it is not the most expensive in the process.
Speaking of expenses, the construction phase is definitely the priciest. However, these costs can be kept to an optimal minimum in most instances.
Philip Goforth of Missouri explains that what a developer really needs to focus on in Step 2 of this process is the performance of the construction team. When any given component of the property is constructed correctly and properly the first time, costly repairs will not be necessary, making for a seamless inspection.
It is during this step that more planning in terms of marketing can begin, which leads us to Step 3.
Final Touches and Investments
The final touches of the process are just as crucial as the beginning steps. Tenants must be secured, or buyers of the property must be given the opportunity to see what makes all of the development worthwhile in the end.
Philip Goforth of Missouri explains that this means real estate developers must check over the property, considering the needs of those who will potentially be returning the investment made. Consider amenities and features that would make the property uniquely attractive to buyers or renters, then weigh the cost of adding what is not already there.
The journey of real estate development has many moving parts, from planning to the last stage of final touches, all to ensure that a property is prepared for the owners or investors of that asset.
Philip Goforth of Missouri also notes that any good real estate developer makes sure to accomplish with excellence, starting pre-development. This involves analyzing the property itself, and often comes with research that is focused on permits and local legislations. It may take more time, but success is certain as long as all of the legal boxes are checked with excellence.
Once this foundation is laid, the next step is to begin construction, which should come with minimal risk to the developer, granted proper planning. That said, this is generally the most expensive step on the journey.
Finally, encompassing final touches that a developer must invest in before the property’s future can be determined. These are all based on what it will be used for; will the real estate be sold, invested in, or managed by the developer?
Regardless, when the journey is taken carefully and the steps are followed with great attention to excellence in every detail, a real estate developer can feel confident in a job well done and rewards waiting to be reaped.