Our Top 3 Tips for a Successful Real Estate Development

Maximise Your Project’s Potential with Smart Strategies and the Right Financial Partner

Real estate development can be an incredibly rewarding venture, transforming a vision into a tangible asset. To turn a profit and ensure a smooth process, you need a solid plan. The right development finance can be the key to unlocking your project’s full potential. At Breeze Capital, we’ve seen countless projects succeed and we’ve distilled that experience into our top three tips for a successful real estate development.

Tip 1: Nail Your Due Diligence and Secure the Site

The most successful developers are the ones who do their homework. Before you even think about submitting a planning application or securing development funding, you must perform exhaustive due diligence. This isn’t just about checking the land registry; it’s a deep dive into every aspect of the project.

• Financial Feasibility: Before you buy, analyse the gross development value (GDV) and all associated costs. This includes everything from the purchase price to construction, professional fees and interest on your real estate finance. A realistic financial model is your roadmap to success.
• Planning and Permitting: Understand the local planning policies and potential constraints of the site. Can you achieve the density or type of development you envision? Engaging with planning consultants early can save you from costly surprises down the line.
• Market Analysis: What does the local market look like? Is there a demand for what you plan to build? A thorough market analysis will help you determine the most profitable use for the site and set a realistic GDV.

Tip 2: Build a Strong, Reliable Professional Team

Your project is only as strong as the people behind it. Surrounding yourself with experienced professionals is non-negotiable for a successful real estate development. A reliable team ensures the project runs on time and on budget, which is crucial when managing development finance.

• Architects and Engineers: A skilled architect can design a space that is not only functional and appealing but also cost-effective to build. Structural and civil engineers will ensure the design is sound and compliant with all regulations.
• Contractors and Subcontractors: Your main contractor is the lynchpin of the construction process. Choose a contractor with a proven track record, a solid reputation and the financial stability to complete the job.
• Legal and Financial Advisors: A good solicitor specialising in property law will protect your interests throughout the acquisition and sale process. Likewise, a dedicated development finance partner like Breeze Capital can provide the flexible funding solutions you need to keep momentum high.

Tip 3: Create a Robust Project and Financial Timeline

Time is money in real estate development. Delays can dramatically increase your costs, particularly interest payments on your development funding. Creating a detailed timeline for both the project milestones and your financial drawdowns is essential for managing cash flow and staying on track.

• Milestone Planning: Break down your project into key phases: site acquisition, planning approval, demolition, foundations, structure and fit-out. Assign realistic deadlines to each of these milestones.
• Financial Management: Work closely with your real estate finance provider to schedule drawdowns that align with your project’s needs. This ensures you have the capital available when you need it without paying interest on funds sitting idle.
• Contingency Planning: Always build a contingency budget and timeline into your plan. Unexpected issues—from supply chain delays to unforeseen site conditions—are common in development. A robust contingency plan provides a financial cushion and flexibility.

For more information on how Breeze Capital can help you with your property requirements, please call us on 01244 565095

Follow us on our socials

Facebook

Instagram

LinkedIn

Or click here to go to our main page: www.breezecapital.co.uk