Perhaps you want to build a new strip mall or develop land for commercial purposes. Whatever your motivation is for real estate development, there are numerous budget factors and considerations to keep in mind. Streamline your project by taking the time to research general contractors and remembering these budgeting tips.

Do:

Schedule A Site Survey & Title Search

Start your real estate development project the right way with comprehensive land surveying and title search. A land survey examines the site for costly liabilities such as flood zones while a title search ensures the current owner is the sole owner. It also checks the property for liens, unpaid taxes, and other issues that cost you time and money.

Stay Realistic

Create a budget that accommodates labor, materials, delivery delays, product shortages, zoning and permit fees, and equipment rentals. Dedicate a portion of your budget to surprise fees, such as having to replace materials due to bad weather, and outline key performance indicators. The actual cost of work performed, for example, tells you how much the job has cost. Other indicators include cost variance and return on investment, indicating where the project falls on your budget scale and what profits you can expect, respectively.

Don’t:

Forget To Review

Manage your real estate development budget by staying aware of what money is spent and where. Make adjustments that sidestep serious budget increases, such as forgoing costly water features for less expensive hardscaping like brick pathways and tiered retaining walls. Consistent budget reviews also help you keep billable labor hours in check and make certain your current resources get used before more orders are put in.

Get Excessively Specific

Stay flexible about material and product selections. While you do not want to skimp on quality, there are times when you can get what you need without paying high-end brand prices. Be open to general contractor suggestions, as they typically know what products are worth the extra money and what can be replaced with less expensive materials. They also enjoy professional relationships with building material manufacturers for discounts and similar perks. 

Discuss your real estate development project with the general contractors and developers at APPRO Development, Inc. & CERRON Commercial Properties, LLC. One of the top 10 real estate developers in the Twin Cities, this Lakeville, MN-based business has served the region since 1987 and walks clients through the entire commercial building process. Call (952) 469-2171 today to get started or learn more about their commercial real estate services online. Get additional development tips on their Facebook page.