Development

I have a friend who mentions doing land development all the time. He tells me things like "There's some vacant land right next to these (commercial buildings). You could buy the land, and I know people who can give you a very good deal on building." I know that he has very good connections in terms of contractors, builders, plumbers, etc. Should I go out and buy a book or does anyone here have a process that they would use and can share? Thanks in advance for any help.

I think development would be a lot of fun. The challenges are a lot different than buying and selling existing buildings.

Development has so many opportunities for error. How often do you plan a project that comes in on time and under budget? That is a big challenge for developers and they need to build in a lot of contingencies. Banks are not forgiving when things don't go well.

You are taking all the risk that the location is appropriate for the project. Time is only on your side when the market is on an upswing. There are a lot of builders that get caught in the wrong cycle.

If you are good and can build off your successes, the world is at your feet. Like any business, there are some that succeed and many that fall to the wayside.

Study up!!!