When it comes to job titles, being able to call yourself a real estate developer feels pretty glamorous. But what does being a real estate developer actually mean? And how do you start a career as a real estate developer? Fortunately, the answer to both is reasonably straightforward. Here’s a look at what a real estate developer is and how you can become one yourself.
What Is a Real Estate Developer?
A real estate developer is a professional that oversees building or renovation projects. Typically, they either focus on taking vacant land and building homes, retail destinations, or industrial and warehousing facilities for others to use or on updating neglected existing structures to create new business locations or housing.
As a real estate developer, the goal isn’t typically to keep the property after improvements are made. Instead, it’s more common to sell the finished properties to another party. However, in some cases, a real estate developer may keep the property in their name and rent out the space to interested parties, allowing them to secure income from them over the long term.
What Does a Real Estate Developer Do?
Generally, the real estate process is multi-staged, and it’s primarily managed by a real estate developer. First, real estate developers examine markets to identify the type of development that has the most potential. Along the way, they also look for available properties, allowing them to choose a project type that could generate the most profits.
After they find a property, they’ll move through the purchase process to acquire the land. Next, it’s time to secure any required approvals or permits to move forward with the project. This phase also includes preparing various reports, particularly financial analyses, particularly if the developer needs to secure outside funding.
If the plans are approved, a real estate developer oversees any building projects or renovations. They’ll also make any decisions that are necessary as renovations or builds are underway, such as addressing change requests.
How to Become a Real Estate Developer
In most cases, the journey toward becoming a real estate developer begins with formal education. Most real estate developers have at least a Bachelor’s degree, usually in a major like finance, business, management, or engineering. A notable number ultimately get a Master’s degree, too, though whether that’s necessary can vary.
Real estate developers do typically need a license, which is issued at the state level. Exactly which license (or licenses) is required can vary by location. Similarly, what’s necessary to obtain a license can also vary, so you may need to meet specific experience or educational requirements to qualify.
It’s not uncommon for real estate developers to get a real estate license initially. Then, after gaining experience in other areas of the real estate industry, they transition toward a real estate development license if that’s a separate credential in their state. Some may also choose to get a real estate broker license, though that’s typically optional.
In some cases, it’s wise to get an internship position with a real estate development company, particularly if you don’t have any prior experience in the industry. It’s a chance to learn directly from experienced professionals operating in your area, giving you solid footing as you work to become a real estate developer.
Finally, many real estate developers have additional certifications, particularly those who work for an established company. There can also be continuing education requirements to maintain various licenses, the exact nature of which differs depending on your location.
Do you work as a real estate developer and want to tell others what it’s like? Do you have more questions about being a real estate developer and whether it’s a viable career? Share your thoughts in the comments below.
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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