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Real Estate Developers No More Budget Nightmares

April 28, 2005 -- Property Developing. Anyone can do it, right Well, strictly speaking yes, anyone can buy a run down house, spend a bit of time and money doing it up, and sell it for a tidy profit. But the difference betweeen success and failure depends on the amount of profit your development can fetch, and successful property developers always stick to the same winning formula.



Step 1 - Location

When selecting a property to develop do some research on your local areas. Ideally you want to be developing a property in an up and coming area, as your sale price for the completed development is going to be higher. You don't need a crystal ball to determine up and coming areas, you just need to be able to read certain signs such as:



- new housing developments

- recently improved transport links

- new businesses relocating to the area.



Step 2 - Prospective Buyers

With your area now chosen, you next need to look at the possible people you intend to sell your completed development to. Chat to local estate agents, as they'll be able to tell you the type of people who have recently been buying properties like yours. As a guide :



- an area with lots of businesses and restaurants is likely to attract young professionals

- an area with good local schools and plenty of open spaces is more likely to appeal to families.



Developing your property to appeal to the right type of buyer will make it easier to sell and therefore move quickly on to your next development.



Step 3 - Budgeting

Before you can start knocking down walls and pulling kitchens out you will need to get your finances in place by preparing your budgets. Don't be tempted to 'pull figures out of the air' whilst doing this - you'd be surprised at the number of first-time developers who do! It costs nothing to get written quotes from relevant tradesmen, and they'll also give you a pretty good estimate of how long the work is likely to take.



Preparing a comprehensive budget can be fairly simple, but sticking to it can test even the most seasoned property developer. A successful property developer is one who can keep a tight hold on their spending as the development progresses, in order to avoid overspending. And as any property developer knows only too well; the higher the overspend, the lower the profit.



Step 4 - Making life easier

More and more successful property developers are discovering the benefits of using computer software to handle their finances. Property Developer Plus is an easy to use budget spreadsheet which takes care of all the financial aspects of a typical domestic property development. By simply inputting your initial budget figures against each item at the start of your development, the software will automatically calculate your total budget for you. Then, as your development progresses you can add your actual costs and see at a glance any overspend or savings.



It's that simple. The software does all the hard work for you, leaving you free to do all the fun stuff, like choosing kitchens and perusing paint charts.



Property Developer Plus can be downloaded at www.simplyspreadsheets.com for just 27.00. A small price to pay for a guarantee of larger profits on your next development.

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