Real estate is a complex venture requiring multi-disciplinary skills, knowledge, and experience. Underestimating this complexity has resulted in financial losses and unrealized dreams amongst other unpleasant consequences. The fundamental assignment of real estate development investment companies is to primarily engage in property development and investment. Their interests cut across residential and commercial properties and they also provide real estate advisory services including delivering high-level solutions in areas of development conception, design and build, development appraisal and monitoring among others. They are a core part of real estate investment and their competitive edge include expertise in their niche, a proven track record of success, excellent management, innovation and strong corporate values.
In reality, the entire concept of real estate development is of course much more complicated than someone buying a home to fix it up and resell it, real estate development investment companies engage in large-scale or high-end real estate deals often millions or even billions of dollars in investment.
There are usually two major categories of real estate development investment activity carried out by these companies. They include land development and building development (also known as project development).
Land development usually involves the purchase of land that is currently a low prospect or unimproved, meaning that it has yet to have utility connections, roads, any type of grading, and so on. Unimproved means just that, in every case. These companies then step in and define the covenants, which are the context of any future builds and improvements on the land. They also gain entitlements, which are legal permissions or permits in order to go ahead with their development plans. Once these covenants and entitlements are in place, the land development can then begin, with earth grading and other land leveling, utility connections, and zoning. Roads are also planned, built, and paved, whether for large cities or just neighborhoods. These development activities then increase the cost of this land from a few thousand dollars to several millions of dollars.
Building or Project development, on the other hand, involves investing in low-end properties then upgrading, remodeling, razing and rebuilding, furnishing them to taste or otherwise improving whether for sale or to keep as assets to produce cash flow via rents and other means. They usually engage in offices, retail, private homes and high-end projects like condos and deliver them with strong features of functionality, quality, value, and sustainability.
Building developers and land developers obviously need to work very closely, as the building developers plans will need to be accommodated by the land developers. For example, the utilities brought in for office buildings are obviously different than those for private homes, as are roads, and everything else.
The vision of real estate investment development investment companies is to be distinctive in the real estate sphere and offering superior value to their customers, investors and employees with a mission to help these people as well as having high returns on the properties they choose to invest in.