The Joys of Development

Real estate development is one of the most challenging entrepreneurial endeavors I can imagine and certainly that I have experienced. The idea of spending bombastic amounts of money with no assurance of a return is unnerving, though of course with real estate you always have the land so maybe it’s not as bad as some nebulous start up. Though, every new project is a start up, even if you’re replicating a proven model. On paper things always work, or can be made to work, but the devil is in the details. Also, most everyone on the “team” is not taking risk more than their next invoice so you’re alone, really. Having worked with large development companies with deep pockets this on the edge feeling is less evident but still real, after all money is money and losing it doesn’t feel good no matter who you are. However, bootstrapping real estate development is really hard. All the stars have to align: costs, demand, design, capitalization, and timing. If one of these items is out of whack you get your head handed to you, less the design fees. That said, not having the right team who can help you design, plan, and finance your project is a greater risk and can lead to greater loss of money and time, I know I have lived this…more to come.