How To Get Into Real Estate Construction Business As A Beginner?

[Good-Guy]

Many people believe that real estate business is a quite straightforward field. Whenever the term "Real; Estate" comes into our mind, we naturally think that we are talking about buying or selling property for profits. However, the fact of the matter remains that Real estate business is a really vast field. There are many different branches of real estate and I think that we could say that construction is also a category of real estate business. Construction business refers to building properties so that they could be sold for profits. There was a time when construction business was booming a lot around 10 to 15 years ago because many local investors were investing money into real estate and construction business.

The fact remains that even after the pandemic, a few investors are still interested in construction business and they are building houses, apartments, condominium, etc for selling it later. Construction business requires you to have a good level of experience and you must know how to handle contractors and labors. This is why there are many people who often try to gain as much experience as they can before they actually step into this business. What suggestions could you give to a person who wants to get into construction business?

 

[Alexandoy]

I agree that the construction industry is alive and kicking here that a construction business has the opportunity for growth. In every province (or state) here there is a boom in real estate development especially that the pre-selling scheme is very popular. However, to have a construction business you need a contractor's license. There are types of contractors and maybe you need a license for general contractor. From what I know the main requirement for a general contractor is you need to be a licensed engineer, like a civil engineer or a mechanical engineer. Other requirements are the place of business together with the equipment needed for the construction. That is a big investment that I think is not worth the gamble if you do not have the experience. There are many contractors here who failed in their project that they couldn't get clients anymore (they are somewhat blacklisted). Before you make solid plans for real estate construction business you have to think twice.

 

[Shaf]

As with any business, never assume it's easy money you would be getting. Real estate is even more tricky to navigate because of the money involved.

First, you'll need capital to buy and develop or refurbish the property. Then you need to look for buyers or rent it out. Not everyone has the money to buy a property and most are actually looking for bargains, so it would take skills to make a profit if you decide to sell.

If you should decide to rent the property, it would take a long time to get back your capital and start making profits from it.