Perhaps you want to take a parcel of unimproved land on the edge of town and turn it into an industrial facility where you will produce a new product that you designed. On the other hand, maybe your entrepreneurial dreams involve creating a real estate development where you turn formally agricultural land into a number of residential properties.
Property development is often an important element in an entrepreneur’s early plans. What do those hoping to start a successful company or begin a new project need to know about property development if they have never done it before?
Zoning is king
When choosing the right property for your business, proximity to certain neighborhoods and price are obviously important. Some entrepreneurs focus so heavily on these concerns that they fail to properly consider zoning, which can be even more important.
The current zoning for a property will determine whether it is worth the price a seller asks for it and whether you can use it for your intended purposes. It is possible to secure variances for zoning or to change the zoning for a parcel, but both of those processes can be very complicated and do not come with a guarantee of success.
Long-term development plans will inevitably encounter setbacks
When you have a four-stage property development plan, it may be several years before you can use the property as intended. You need to prepare for the possibility that complications will arise that will increase the cost of property development or significantly delay the completion of the project.
Having resources set aside and negotiating your contracts in such a way as to protect yourself when things don’t go according to plan will be crucial. You never know when there could be artifacts uncovered during a groundbreaking that require an archaeological survey or when an environmental impact report comes back with far more concerns than you initially expected.
It is very easy for an entrepreneur to overlook the challenges that might arise in a property development project, especially when they don’t have legal counsel. Bringing in professional help can help you better protect your business and make better choices as you look to develop a piece of real property for profit.