REAL ESTATE DEVELOPMENT BUSINESS: How to become a Developer and detailed steps to start a company

real estate development business

Real Estate Development business, also known as Property Development business, involves processing, leasing, buying and selling of raw and developed lands, the renovation and reselling of existing buildings, financing of real estate contracts, and then the organization of these contracts for a price or rather a salary.

In 2019, when a peek was taken into the statistics of the real estate development business, it was recorded that it experienced a 13 percent increase from the last time the statistics was taken in 2006.

Subsequently, influx into the real estate development business has been on the rise; partly as a result of its reputation to yield high profits and on the other hand, the luxury it affords individuals to engage in other ventures. Well, it’s important to note that you can only achieve this if you play your cards right.

And for the most part, this post was designed to help you play those cards right as it covers the key aspects of starting a lucrative real estate development business including its processes.


Kick-starting a real estate development business basically involves your ability to take risks. It also entails having foresight and being able to predict accurately (at least up to eighty-five percent).

The real estate business can be categorized into three forms namely:

Real Estate Development Process- TheBalance

i. Residential real estate development business; talks about the trading of houses (residential buildings,) raw lands, and road construction contracts.

ii. Commercial real estate development business; involves trading commercial buildings like eateries, malls, hotels, bank buildings, amongst others.

iii. Industrial real estate development business; deals with the trading of Industrial buildings and properties.

So in general, the real estate development process talks about you choosing a niche amongst the three forms mentioned above as it is not something you just dive into.

Next is to acquire properties relating to that niche, and then leasing or selling off the acquired properties.

However, if you do not have the funds to acquire properties, you can start as a real estate agent for individuals and firms who are interested in selling off their properties, acting as a middle man between.

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A real estate developer also called a Realtor, is someone who is into the business of selling and acquiring landed properties. A realtor or real estate developer fills in as a middle man between owners of properties and buyers who want to acquire those properties. The person(s) have the primary function of making intense research about any real estate property up for lease or sale, and their necessary demands.


Real Estate Development Salary- ResidenceStyle

Developers do not specifically have an exact amount of money they earn, as profits generally depend on the individual cost of the property being sold. In other words, real estate development salaries are contract-based.

Most times, the developers get about twenty to thirty percent of whatever profit that comes from the sale of properties.

However, there is an exception to this style of earning. This is when a developer works with a firm, and may have consented to a salary structure on appointment.

But regardless of these factors mention above, average annual real estate development salary for developers range from $8,862 to $10,000.


Basically, there are two major ways you could become a real estate developer. These include the following;

#1. Become a real estate agent.

Not everyone is privileged to afford the startup fund or capital needed to acquire properties. Hence, it’s advisable that you start as an agent.

Mediate between owners of properties and buyers. Search the market for people interested in selling or leasing their buildings, lands and properties; link them up to those ready to buy, and then discuss your share of the profit with the owners.

Usually a number of owners, let the agents have about twenty or thirty percent of the profit. And over time, you will be able to save up your capital.

#2. Acquire properties

If you can afford to acquire properties, then, trust me, it’s a great start for you (only if you take the right steps).

Well, taking this route is pretty basic though.

Acquire lots of raw lands, residential homes, already existing commercial buildings,  unfinished sites or buildings, and other properties. Renovate and give finishing touches as it will increase your selling rate. And sell or lease them to buyers or people ready to rent them.

However, you can’t go about acquiring just any property you find out there. You should prioritize carrying out in-depth researches on these properties in question to just purchasing tons of them.

Read Also: FASHION DESIGN BUSINESS: How to start a home-based fashion design business.


The success of every business is measured by how much growth the business has made in a specific frame of time. But while we can not literally fast-track the growth of any business, there are about a list of things we could do. And that’s ensuring our bases are properly covered.

Real estate Development business

Here’s a list of things to do when starting your real estate development company.

#1.Write your business plan

A business plan summarizes the future projections of your business. Writing a business plan helps to give you a sense of uniqueness since, this is where you outline your unique selling point.

Writing a business plan also gives you a sense of direction as the plan acts as a map. It basically includes an executive summary, your target audience, financial projection, growth and marketing strategy, and your unique selling point.

#2. Obtain a real estate license

This is what gives you the legal right to carry out your business in a certain location. The prices and processes of getting a real estate license differs from state to state.

#3. Choose a location(s)

Pick a country, state, or city that would be your target location. Picking a location will help you narrow down the demography you want to cover as regards your business.

#4. Build a team you can trust

It is impossible to run a company alone and succeed because you cannot be everywhere at the same time. Hence, picking a set of trustworthy and loyal individuals is vital.

For a real estate development business, your team should include a broker, a manager, a lawyer, a consultant, an Inspector, a Closing Agent, a Clerk, a Foreclosure Specialist, a developer, a builder and a Property Manager.

#5. Setup a capital structure

A capital structure is also called the financial structure. It helps you run the financial activities and growth of the business. It also helps you finance your assets by balancing debts and equity.

#6. Set up a Marketing plan

A marketing plan involves setting up a strategy for marketing your lands and properties. A marketing plan helps you come up with unique selling points that project your business to the right customers.

The plan features the target market, the brand’s value proposition, marketing strategy, budget, and a metrics for ascertaining the progress of your marketing strategy.

#7. Develop a management structure

A management structure determines how you want to run your business, the activities and roles of your team. In recent times, the team-based management structure have proven to be very effective and less stressful.

#8. Look for investors

An investor is someone who supports your business financially with the aim of getting financial returns. Real estate development business require large funds to run. Hence, it will be wise to search for investors.

In your search for an investor, a concise business proposal should do the magic.

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#9. Publicize

Get the word out!

This will involve announcing your business to the world. But, when it comes to this, strategies differ.

It is up to you to discern and decide which to leverage on.

However, one strategy that has proven effective overtime is leveraging your contacts. This where you judiciously put into use, every contact and connection you’ve established over the years.

#10. Develop a CRM

Customer Relationship Management system helps you come up with effective ways of making your customers ask for more just like Oliver twist. CRMs help you manage, keep, and get new customers. It also encourages team communication, helps to manage your customer database, and manage your relationships and interaction with existing and potential customers.

#11. Join the national body of realtors

Identifying with the national body of realtors helps expand your connections. Here, you will meet more skilled and experienced realtors who’ll assist you in gaining stance in the real estate world in no time. This also help you to gain recognition in the locality where you find yourself.

#12. Join a broker

A brokerage is a an agency of brokers. Meeting very experienced brokers will help you learn from their experience and strategies too. A brokerage as an agency looks out for you as a broker and helps you to expand your tentacles.

#13. Build your personal brand

Your personal brand is a trademark that distinguishes you anywhere. What many realtors and people in other forms of business don’t know is that the growth and success of a business largely depends on banding.

As odd as it might sound, real estate business is a networking business based on leads. You will need to up your game and be ready to build not just a business, but also build a brand that connects and build relationships with people.


Its almost impossible not to fall in love with the concept of real estate development business immediately you hear it. But tons of realtors end in debt for one singular reason, taking the wrong approach.

Well hope this post was able to fix that problem. Although a visit to our product page for a well detailed business plan in this respect will give more insight as to how you should start up.

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