Common Challenges in Real Estate Development

 Posted on December 00, 0000 in Commercial Real Estate

Real estate development can build your wealth and investment portfolio, but only if you play your cards right. There are numerous challenges, potential pitfalls, and unique obstacles that must be faced. Failure to account for any one of them can result in a delay or even complete loss in your project. Learn more about these challenges and how you can mitigate them with help from the following information.

Difficulty Seeing the Bigger Picture

Government projects often move quickly, but private real estate development usually take much longer. There are numerous reasons for this, and each development project is unique, but the lesson is that patience is crucial. Developers also need a certain amount of vision – an ability to see the bigger picture – to be successful over the long-term. So, before you purchase a property, consider some of the following questions:

• What do you want to accomplish five, ten, and twenty years from now?
• How well does the project you are planning align with your goals?
• What will your next project be?
• Is there a cheaper or more effective way to reach your goal?
• Are there any major project issues that might compromise your success?

Zoning and Land Development Issues

Of all the challenges that developers face, those pertaining to zoning and land development are often the most complex. Even more challenging are the potential delays, fines, and alterations in master plans that often accompany zoning and land use issues. Thankfully, there are some ways to work around these often confusing and frustrating matters – namely ensuring you have the assistance of an experienced land use and development lawyer by your side.

Funding for Land Development

Over the last several years, funding for land development projects has become more difficult to obtain. Part of this is due to the Great Recession. However, there are other factors at play. Banks and lenders are now facing more scrutiny, and so they must be more critical when making funding decisions. A high failure rate in the industry has also led to extra scrutiny. Learning how to overcome these challenges can take time, but an attorney by your side may improve the odds of success.

Contact Our Naperville Real Estate Lawyers

At Lindell & Tessitore, P.C., we give you the confidence of knowing your project is resting in the hands of a competent advocate. Dedicated to ensuring your land development project is a success, we offer personalized and attentive services to suit your needs. Learn more about how our Naperville real estate lawyers can assist with your next project. Call 630-778-3818 and schedule your consultation with us today.

Source:

https://www.naperville.il.us/contentassets/f6f4d1b8766c4564bde31277f00f444b/pzc-by-laws-update-3-1-17.pdf

http://ww2.cfo.com/credit/2017/05/banks-cre-lending-policies/