What You Should Know About Commercial Property Development

A key decision that business owners must make is whether to lease an existing commercial property or build one. Some choose to go the route of building a property because it enables them to get exactly what they want. Let’s review what commercial property development involves.

Choosing a Developer

One of the most important steps in commercial real estate development is choosing a builder. Hiring the right company is critical because failure to do so can be costly. You need to make sure there are no long delays, which is common in real estate development. Fortunately, a qualified commercial real estate developer can guide you through every step of the process, which includes ensuring it’s done on time, according to specifications, and in your agreed-upon budget.

Interior Space Design

A key aspect of commercial property development is the interior space design. This is one of the most critical aspects of the project because you’ll need to dictate how the entire property will be designed. Effectively planning the interior space will help to optimize workflow, which is a component of productivity. For instance, if you have a restaurant, you’ll need to make sure the kitchen layout is carefully planned. The design of highly functional spaces like a kitchen can contribute to the success or failure of a business.

What’s interesting about interior space design is that there are philosophies that should be considered concerning hierarchies in the workplace. There should also be an understanding of Lean Six Sigma Principles because the more efficient a work space, the better your bottom line. There are traditional and modern theories regarding workplace planning. The desired final outcome will dictate which is best for your project.

Vendor Management

Another key aspect of commercial property development is managing vendors. Fortunately, many commercial property development companies will manage all of the vendors and involve you in the process as necessary. This includes overseeing interior designers and architects, which is a masterful undertaking that requires a lot of effort.

It’s always wise to get a recommendation and check with the Better Business Bureau to ensure the commercial property development company that you choose is in good standing. This can save you from a lot of pain and frustration throughout the process.

Originally published on noelsurin.co.uk.

AI and Real Estate

AI Delivers Better Choice for Home Owners, Buyers, and Agents

As a home buyer, how easy is it to find a home that matches everything you want. As a seller, can you figure out how much your home is really worth in changing times? As a real estate agent, do you have all the information you need to serve both buyers and sellers while staying competitive and making your own real estate investments? A tall order, but artificial intelligence (AI) can help.

Here are a few key concepts to keep in mind as AI revolutionizes every industry—real estate included:

Gathering Value Data and Making Better Decisions

If you’re thinking about selling your home, how do you decide your home’s worth? The easiest answer is to stay near your neighborhood’s value. Buyers are likely to believe a home’s value if all other homes are around the same value. What if you deserve more? What if you want to make improvements to be worth more? There’s no shortage of home improvement advice, renovation TV shows, and real estate advice to help you make more money on our next sale. There’s also no shortage of buyers who want a deal.

What you need is the ability to make judgments based on real-time, actionable data. That’s where AI comes in. Information about not only recent property sales, but improvements, improvement costs, open house participation, and other data can come together to give more estimates on value. From there, you can figure out not only how much to sell for, but what you can do to make a better sale–and how to avoid wasting your improvement funds.

Finding Better Homes As Buyers

When looking for a home, how do you find a great deal? For some, finding a dream home and expecting to pay a lot is a given. For others, home buying is a game of haggling and estimations like any other. AI delivers more information about buying the same as it does for selling. As a buyer, you can look forward to better grouping of homes based on your preferences. If you’re looking for a specific style of home, using architectural terms and modern style terms will only get you so far. There may be a mood or feel that you can’t put into words, but AI can analyze those patterns. Pattern analysis is a major part of artificial intelligence. It’s how AI learns, and as real estate AI learns your preferences, you can discover designs that fit your idea of perfect even closer—and with price and feature details, too!

For years, much of the real estate industry remained unchanged. Now, new technology is helping industry professionals find, create, or maximize opportunities within the market. No matter what aspect of real estate you’re involved in, it’s likely AI can help you take your business or needs to the next level.

Originally published on NoelSurin.co.uk.

Property Development: Know the Risks

The real estate industry is one of the most suitable investment opportunities for people with a taste of property development. Like any other business, however, real estate development is plagued with various risks that developers should be well aware of. Each of the three stages of property development has plenty of obstacles that may impede the developer’s ability to succeed in the long term. However, when approached with a keen eye, property developers can easily succeed in the sector. Here are some notable risks and how to maneuver them.

Capital and financial risks

Real estate developments are capital-intensive and may require the developer to acquire credit from financial institutions. This is the riskiest step as it may lead the developer into significant liabilities in the form of debt. The developers should focus on balancing the credit risk with the proper analysis and evaluation of the suitability of the investment to ensure that the returns far outweigh the risks. Before taking any credit, it is essential to evaluate the availability of collateral to prevent the risk of going bankrupt and foreclosure.

Industry risks

The entire real estate market is quite volatile as property values go up and down as dictated by numerous factors and market shocks. As a real estate developer, one must be well aware of the particular market invested in, the factors that affect the industry in general and come up with strategies of mitigating such market risks. One should invest in diversified property types, such as single-family and multi-family properties.

Marketing risks

Even after development, real estate owners must invest in proper marketing to ensure full occupancy of the properties. Sometimes, properties may be built and marketed just right, yet not attract 100 percent occupancy for quick returns to be enjoyed. The developer must, therefore, invest in guaranteed property marketing strategies and target the right market to eliminate any instance of negative cash flow.

Depreciation and occupancy risks

Once properties have been completed and occupied, they face additional risks of bad occupancy and structural depreciation. Some tenants may fail to commit themselves to the lease agreement, including failing to remit their rent per the lease agreement. This may haunt the Investor as he or she may lose valuable revenue at the point in time when it is required. Also, properties do undergo progressive depreciation, primarily due to structural issues, thereby requiring progressive maintenance.

Originally published on NoelSurin.co.uk.

Sustainability and Property Development: Going Green Is In Demand And Profitable In Real Estate

Sustainability Through Property Development | Noel Surin

Many real estate investors and property developers have already realized that sustainability is an important aspect of a new investment or development. This is because going green is becoming increasingly in demand by home buyers and renters. Even local, state, and national governments are encouraging the building of green buildings. Smart investors and developers must realize this and take advantage of the opportunities posed by this sustainability shift in real estate.

The good news for developers and investors is that people are willing to pay more for eco-friendly features in homes and apartments. This means that you can satisfy their demand and make a tidy profit in the process as well. Homebuilders should especially look at things like energy-efficient appliances, windows, and insulation.

You do not have to be a builder to initiate new green features into a property. Existing multi-family dwellings can have older, less efficient lighting changed to more efficient LED lighting in buildings. Old appliances can be replaced with newer energy-efficient ones. A recycling program can be started at an apartment complex. Other measures that can be taken are adding insulation and maintaining water heaters.

Real estate investors, owners, and managers must also realize that the upcoming generation will often demand sustainability in housing. In order to capture the millennial generation and generation Z, properties must market their green features. Marketing sustainability initiatives is also a great way to differentiate your property from other, less sustainable developments. If you can get LEED certification, then you will definitely want to market that your building has the highest level of sustainability certification available from the US Green Building Council.

Building green housing is also viewed as being socially responsible. This social responsibility and environmental awareness does come at an increased price, however. There needs to be a larger, upfront investment.

In order to offset the higher upfront costs of using energy-efficient appliances and eco-friendly building materials, developers and investors are encouraged to try and take advantage of tax incentives offered by local, state, and national governments. The more substantial upfront costs can also be viewed as an investment in of itself. A more efficient and eco-friendly building will have fewer upkeep costs in the long run. This will mean less maintenance expense, and fewer upgrades will have to be done later on.

Originally posted on NoelSurin.co.uk on July 23, 2019.

What Buyers Want in Newer Homes

Whether one is considering selling, buying, or building a new home, it is helpful to be aware of which layout trends and house features buyers most desire. The home buyers of today are interested in house plan options that are convenient and that help them remain organized, live comfortably throughout life’s stages, and keep low utility costs.

Move-in Ready Homes

Most buyers are interested in properties that are turnkey homes, or move-in ready. These require minimal to low work on the end of the buyers. Move-in ready homes feature updated appliances, a roof that is new or free of damage, HVAC systems, and have gone through inspections and passed without issues. These properties are preferred by buyers due to taking the hassle out of negotiations.

Hardwood Flooring

Hardwood flooring is thought of as a bling feature and is wanted by 87% of buyers today, making it one of the most wanted features in a new home. Because they are durable, long-lasting, and easy to clean, hardwood floors suit any home style as a great feature.

Storage in the Garage

Especially for first-time buyers, owning a house is the chance to enjoy more space after a long stretch of apartment life. This is why 80% of house buyers desire a large garage with plenty of storage space. Across all of the demographics, buyers are drawn to this feature because it is simpler to access those items stored in a garage than it is to get things from a basement or attic.

Open Floor Plans

All of the demographics also seek after open floor plans. The vast majority, nearly 84%, of new houses feature this aspect. Fewer walls acting as barriers between the living room, kitchen, dining room, as well as other areas mean a greater fluidity within the home, making free navigation easy for residents and guests when entertaining.

Laundry Rooms

Even more popular than hardwood floors and fancy living spaces outdoors are laundry rooms. These take piles of dirty clothes or hampers of clean ones out of sight and neatly tucked away in a room that can also double as a mudroom. Buyers want those dirty clothes behind a door that can be closed and addressed when time is available.

Tailoring the homes you build to the needs and wants of the modern real estate buyer will ensure that your project is as successful as it can possibly be.

Originally posted on NoelSurin.co.uk on June 28, 2019.

The Best UK Cities for Property Development in 2019

Strong rental yields and capital growth always sound great, and in 2019, the U.K. is full of incredible property investment hotspots. Of course, affordable prices matter, and at the moment, some cities fare better than others. Here are the Best U.K. Cities for Property Development in 2019:

1. Birmingham

The city is a great one to invest in as it is a happening college town with five universities located there. In addition, Birmingham is quite the commercial hub next to London with major corporations like Deutsche Bank and HSBC rooted there. A lot of projects have been in the works, including the development of High-Speed Rail 2 and luxury residential developments like 105 Broad Street and St. Martin’s Place.

2. Manchester

This is another young folks’ town that offers good employment opportunities. Manchester is very popular and won the title of ‘Best UK City to Live’ in 2016. The city features increasing rents and home prices because of high tenant demand. It’s a bustling city with good transport links and an active social scene.

3. Liverpool

The famous city of The Beatles boasts the fastest-growing economy in the UK. Liverpool is another fabulous city to consider for investment as huge developments are coming to fruition. For instance, Liverpool Waters project is a 30-year plan that is taking historic waterfront dockland and turning it into a multi-billion dollar high quality, mixed-use development. That means more jobs to the city and new businesses moving in.

4. Edinburgh

The Scottish capital is another smart city with four universities based there. Edinburgh is on the move and attracting global giants like Amazon and Travelodge to its community. During April 2018, Edinburgh’s property prices had jumped up 12 percent on the previous year. It’s a hot place to live with one-bedroom flats selling in less than two weeks. That’s quicker than any other type of property in East Central Scotland.

5. Leicester

The “Greater City” of the Midlands offers another amazing 2019 investment opportunity. Leicester happens to have the ideal location in the heart of the U.K., making it a distinctive multi-lingual workforce. The city of 348,000 is only four hours away from mainland Europe and boasts tight cultural links with Asia. Property price growth since 2013 is at 38.5 percent.

If you’re new to property development, or are looking to expand your business into other cities, the five above are great options.

Originally published on NoelSurin.co.uk on May 28, 2019.

How to Get Started in Property Development

Many entrepreneurs have ventured into property development due to it’s potential to yield large profits. Property developers are able to make wholesale purchases within the Real Estate market. Doing so, they often benefit greatly because they buy the property at a low cost and then invest in the reconstruction for resale, often at much higher rates. Essentially, property developers turn nothing into something great, increasing its value and earning the property developer a substantial amount of profit. Taking on a property development project requires a lot of time and work, but can impact your investment and property portfolio in amazing ways. If you’re interested in property development, here’s how to get started:

How to Get the Funds Needed

Saving money is the first step. Every little bit counts. Self funding will reduce or eliminate loan and interest fees.
Taking a loan against the equity of personal property is an option for homeowners.
Renting or subleasing property has proven to be a great option as supplemental income.
Find investors willing to support the development plan.
Applying for a partial or full bank loan may be necessary. The fees will depend on credit history.

Skills Needed as a Property Developer

Knowing how to manage finances is a critical skill in this market.
Being able to read and analyze property reports is necessary for communication with real estate agents, architects, contractors, and engineers.
It is important to know your state property and zoning laws.
Being an exceptional team leader will encourage collaboration and produce success.

How to Find Property to Develop

The internet is a useful tool to view available properties through real estate websites. These portals will list the factors that could be used to determine the viability of the property for sale.
The Public Trustee in your state will have information on properties of deceased homeowners that did not leave a will. These properties usually sell significantly less than their market value.
Rummage through newspapers and real estate magazines. Individuals may opt to list their properties locally rather than globally.
Networking is important in this line of work. Many bargains and rare opportunities can be gained by word of mouth.

The key to being a successful property developer relies on the vision of the site selected and its predicted revenue. A thorough research of expense, investments, and profit must be conducted. Comparisons against the markets data for the type of project selected will provide vital information. The cash flow feasibility of the property is also pertinent to making the final decision of investment.

This article was originally published on NoelSurin.co.uk on March 21, 2019.

Common Mistakes New Property Developers Make | Noel Surin

Property development has the potential to be a very lucrative and profitable endeavor. However, if done wrong, it can be incredibly costly. Many real estate professionals dive into property development at some point to expand their property portfolios. If you’re looking to put a new experience under your belt and branch into property development, make sure not to make these common mistakes.

Buying Too Much Land

More space does not equate to more money earned. Understand what the people in the community are looking for out of this property. Perhaps they want a smaller neighborhood with larger homes. With proper research, you should be able to work out what kind of development will provide the largest return, and it’s not always the bigger the better.

Taking Shortcuts

Not doing things by the book to save money is one of the biggest mistakes property developers make. When you see your budget shrinking, it can be easy to make decisions such as buying the cheapest fixtures and materials, but buyers will notice. Cutting corners during building can also result in really big problems later down the road and may put homebuyers at risk for injury.

Inadequate Funding

Many new developers believe that their only source of funding for a project comes from a bank. This is not true. In fact, banks will typically only provide 60-80% of the funding. That leaves a need to find a substantial percent of money. Look towards crowdfunding or peer-to-peer lending to make up the difference, or into partners who may be able to help finance a project.

Poor Judgement of Timeline and Cost

As a general rule of thumb, always overestimate how much time and money a project takes. Being too optimistic about the timeline and budget will set you up to finish late and be over-budget. Additionally, extending your timeline and giving yourself a larger budget will give you a cushion in case emergencies arise.

Not Utilizing Contractors or Professionals

It can be easy to think that with experience you can manage the development and build by yourself, but this is seldom the case. Hiring experienced contractors and property development firms can help you stay on budget and track and will be able to provide a voice of reason when problems arise. A team is stronger than an individual when it comes to property development.

Property development can generate massive returns if done right. If done wrong, it can cost a lot more during and after the building is finished. Make sure you do your proper research, rely on seasoned professionals, and give yourself a reasonable timeline and budget.