A real estate developer is a professional who specializes in the creation of new developments or the renovation of existing ones, as well as their successful marketing and sale. They may work for large companies that conduct large-scale real estate development or use real estate development as one investment tool in a diverse portfolio, and they may work with partners to share the risk and workload. A career as a real estate developer can be approached from a variety of angles; developers may have real estate development degrees or come from a background as a real estate agent, contractor, or architect.
Working as a real estate developer can be extremely difficult. Developers must be able to evaluate a wide range of future sites to determine if they are feasible and acceptable. He or she can see potential in an empty lot or tour a deteriorating building and envision remodeling and successfully selling it. Developers typically work on a large scale, either constructing thousands of units or renovating a building to create a number of sellable units in the form of offices, retail spaces, apartments, and so on.
Experience in the real estate industry is essential, as a developer must have a thorough understanding of the market to determine whether or not a project will succeed. Developers also need connections with local governments to help them complete projects, ranging from friendly people in the planning office who can make recommendations to allies on planning commissions and city councils who will promote their projects.
A good real estate developer also works as part of a larger group. To see a project through from start to finish, he or she will need to collaborate with architects, contractors, landscapers, politicians, real estate agents, and a variety of other professionals. Developers must choose good teams, organize them well, and manage them effectively, meeting the project’s and team members’ needs while maintaining overall development control.
Many real estate developers specialize in one or more areas, such as high-end residential properties, commercial real estate, middle-class subdivisions, and low-income housing, for example. Developers may also travel across a large region to work on development projects, putting their skills to use in a variety of different settings and cities. A development that appeals to the high-end residential market in New York City, for example, may not be as successful in Minneapolis, and a real estate developer must be able to adapt and read communities well to meet their needs.