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What is a real estate Developer?

12/8/2020

10 Comments

 
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A real estate developer is an individual or organization that acquires real estate with the intention of transforming it or increasing its value in many ways.  OakGrove Development is always seeking to acquire undervalued real estate assets in great locations with historic value.  A development project might not always be a vacant piece of land or a vacant dilapidated building.  We have acquired buildings that were fully occupied but had some aspects that were missing in reaching highest, best use and value.  Such as buildings with low rents, high expenses, or a less than optimal tenant mix.  So what does is take to be a successful developer?

A successful developer possesses the following qualities:
  • A deep understanding of the leasing markets in which they are pursing development.  If they are going to bring a vacant building back to life or transform it into a higher and better use, it is crucial to understand how the end user will value their space.  This knowledge is gained by studying comparable properties in relevant location and actually familiarizing themselves with those products.  It's one thing to understand market data but it requires a hands on approach to term that data into actionable intelligence.  At OakGrove Development, we utilize software systems like the Multiple Listing Service, CoStar and Loopnet to help us with data.  Not only that, we spend considerable amount of time walking properties, networking with brokers and appraisers.

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  • Successful development requires a rich understanding of how banks, lending institutions and investors analyze; underwrite property investments.  A developer might have several funding sources involved in a project.  Those funding sources may be investment partner equity, mezzanine debt, construction financing, historic tax credits, brownfield tax credits, economic development agency loans, grants, etc.  Because development involves a tremendous amount of up front capital, it is mission critical as to how a bank is going to look at your project, how an investor is going to look at our project and how a real estate broker will view it.  The reason for this is simple: knowing your exit strategy and financial stakeholders exit strategy.  How are you going to pay your investor back?  How are you going to pay your bank back?  At OakGrove development, we utilize our collective real estate experience of almost 40 years to not only bring the highest and best value to our projects but to also de-risk those projects through our conservative and exhaustive underwriting.

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  • Successful development requires relationships with best in breed third parties.  There are many experts, consultants and professionals who play a pivotal role in any project: attorneys, real estate brokers, bankers, architects, accountants, government agencies, environmental consultants, general contractors, etc.  Relationships with the right team members take years to form into the powerful bonds that result in development magic.  Relationships over transactions is a core value in our company.  Because when you find someone who shares your values, has honesty and integrity, who goes above and beyond... you stick by them.  Our relationships are our biggest asset.

10 Comments
Homeia link
3/30/2021 12:21:30 pm

Thanks for informative share about real estate developer...

Reply
Alexa link
10/28/2021 05:06:32 am

Thanks for sharing such an informative blog. Really helpful to enhance knowledge about real estate developers. Keep on sharing such pieces of information in future also.

Reply
Buyers Agent Sydney link
1/3/2022 01:45:08 am

Thank you for sharing your ideas with us. Keep on posting.
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Rosa Ricketts link
9/16/2022 10:55:52 am

This sounds interesting. It provided a lot of information and it is reliable. Worth to read, thanks for sharing this article

Reply
Asher Julian link
12/15/2022 11:34:21 am

Great Post. Your blog is very helpful and professional. I especially liked the way you structured the content in the post. Thank you for sharing this informative post.
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Mia Evans link
3/3/2023 08:52:52 am

It's interesting to know that understand the the bank, lending institutions, and investors would also be important to succeed in property development. I can imagine how this kind of industry is quite complex for people who have no education or experience regarding it. So I can imagine how important it would be to hire a professional to guide you in the process if you are interested in investing in the real estate world.

Reply
Thomas Shumate link
3/8/2023 03:54:04 pm

It is mission critical as to how a bank is going to look at your project, how an investor is going to look at our project and how a real estate broker will view it. Thank you for the beautiful post!

Reply
Richard Defranco link
3/11/2023 11:59:53 am

The Development is always seeking to acquire undervalued real estate assets in great locations with historic value. A development project might not always be a vacant piece of land or a vacant dilapidated building. Thank you for taking the time to write a great post!

Reply
Sam Langsley link
4/5/2023 06:45:58 pm

Your post is right on. Being a developer takes a lot of things: capital source, deal sourcing, local connections, process management and knowledge of the local zoning just to name a few. Thanks for the article.

Reply
Bergen County NJ homes for sale link
4/24/2023 01:03:34 am

I went to this blog to educate myself on the definition of a real estate developer. This was a very enjoyable piece to read. You would get the very best review possible over here, and people would also recommend you to others. I appreciate the research that you have done and how precisely you have presented these specific facts.

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  • Our Services
    • We Manage Property!
    • We Buy Commercial Property!
    • Partner With Us!
  • Available rentals
  • Current Projects
    • The Wilder
    • Pulver Studios
    • The Cunningham
    • 17 East Main Street
    • JW On Monroe!
  • Past Projects
  • About Us
  • ROC Blog
  • Contact