If you are a real estate developer, you already know about the complexity and quantity of issues that interplay with each other when putting together a successful project. Whether it is a mall, an office complex, a housing development or a condominium, there are many different disciplines that are needed, including architects, planners, financiers, lawyers, insurers and others to help to ensure the success of the project. If you are an investor who is seeking to develop land or convert an existing building into a condominium, you should carefully consider each step in the process before embarking on the project.
Financial Resources and Real Estate Acquisition
Having the adequate financial resources, capital and lines of credit, is obviously the first thing which must be secured before starting a condominium project. Know that it will take time to secure the funding, and will require expert assistance in structuring loans or partnership deals in the initial phases of the project. Creating a plan and a budget takes both time and money, as it will require the opinion of accountants, tax experts, and attorneys to advise you and draft the necessary documents and contracts for the project.
Purchasing the land or buildings to create your condominium development will also take some time and professional guidance. The property may require zoning approval, which means government involvement. This is another aspect of the development project which could take a significant period of time.
Once you have the finances in place and the site approved, then the process turns to design, planning, and the selling of the units. Financial resources may have included pre-selling the units to raise the capital for the development. However, some developments are funded by a small group of investors, or one investor, and then sold after they are built or converted. It all depends on your particular situation.
Building and Selling the Condominium Units
Once the project is underway, contractors and subcontractors will be hired to build and finish your development. Electrical, plumbing, carpentry, structural and other contractors must be engaged to complete the work and bring your project to fruition. This will require contracts to be drawn up and agreements to be reached on many levels.
Again, the thing to remember is that all of these issues take time to accomplish, and knowing this in advance can significantly lower your stress level and temper your expectations. Selling the units will be the most critical factor in realizing profits and satisfying any financial obligations. The marketing and brokering of the condominium will be extremely important and also time-consuming. Choosing the right broker and marketing plan can require an incredible amount of time and involvement at the outset. Know that this will be a time for you as an investor or developer to be involved in many different activities and that your decision-making skills will be put to the test on a daily basis.
If you are launching your first development project, or are a seasoned veteran developer, it is best to seek professional legal advice. The Milwaukee condominium attorneys at Kerkman Wagner & Dunn have over 50 combined years of experience in business and condominium law. Contact us today for more information on how we can help you achieve your goals in developing a real estate business project.