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Many assume to be an entrepreneur or developer, one must be wealthy. That a developer finds a location and buys it immediately. That is simply not the case. First and foremost, a developer can include an individual, a partnership, an organization, or even the government. Developers also can consist of a mixture of the individuals and entities working together. For example, many local governments often times partner with private developers, working together in the creation of public parks in order to develop space for human activity and thus, strengthen the community. In Fresno, CA the non-profit organization, known as the Poverollo House, is currently working with real estate developers and architects to better serve the need of the homeless in the community. Though the traditional one-man entrepreneur who creates success from nothing does exist, being a developer has a very wide scope of ties and forms. However, there is still a common process to which projects are completed.
Within project development there is an ordered stage process. I will discuss the list described in Real Estate Analysis by J. Diaz and J. Andrew Hansz. The list is a six stage process, with Stages 1-3 being the pre-committment stage, where many hours of intense research are done but very little financial investment has occurred. Stages 4-6 is considered the postcommitment phase, where the developer has decided to go full force with the project and invest most of his resources and time into the project.
- Stage 1: Conceive a Development Project
- Stage 2: Examine the Feasibility
- Stage 3: Refine the Concept
- Stage 4: Design the Project
- Stage 5: Construct the Design
- Stage 6: Manage the Asset
Throughout the entire process, the developer is using outside resources and pulling from his or her network of sources. Relationships are essential to the success of a real estate entrepreneur. A developer needs a reliable team bringing more insight and knowledge to the project. However, services of top-notch professional can be quite pricey and for that very reason, it is valuable for the entrepreneur to build his professional relationships. Having a trustworthy network of professionals can save an entrepreneur not only money but time, if a project is not considered a good deal. The importance of relationships are very useful during the pre-commitment stage when expert opinions are needed before the entrepreneur decides to go forward with the project as well.
Real Estate is a journey. It begins with a vision from an entrepreneur. Though it might seem like a simple, I dream it and now I’m going to build it process, it is not. There are many steps and investigating done before even purchasing a site. A successful developer will perform his or her due diligence before entering the postcommitment stage. And with the help of a network of relationships places, such as Riverpark are created for the community to enjoy.