Being A Nomadic Real Estate Developer: Some Dos And Don’ts
Becoming a nomadic real estate developer can be a lot of fun and is something that you’ll want to try if you are in the industry. It allows you to move around more and avoid getting hemmed into a single city, which can make life a little boring.
The purpose of this post is to introduce some dos and don’ts if you are considering journeying on this path. Here’s what you need to know:
Do Research The Local Markets
Start by ensuring that you research the local markets ahead of your arrival so you understand what you’re getting yourself into. Many local areas have economic trends and property demand considerations that are worth exploring in advance to avoid shocks when you finally get there.
Don’t Skip Due Diligence
At the same time, you’ll want to ensure that you perform all the proper due diligence checks before taking any action. Verifying things like property titles can be challenging if you’re in another country, and you need people around you who understand it and how to follow the rules. Remember, many international destinations do not have rock solid titles on properties, so it might be harder for you to feel secure in any purchase or development.
Do Apply First-World Standards
If you are going to another country to develop real estate, always ensure that you get into the habit of using first-world standards. Don’t fall into the trap of adopting local standards which may lead to lower returns.
For example, if you have a building site, line it with a Heras fence banner for security and privacy, and to advertise whatever construction is underway. Use skilled laborers and ensure that architects sign off on your plans before you make them a reality.
Don’t Commit To Too Many Projects
As a nomadic real estate developer, you also want to avoid committing to too many projects. This approach can lead to mismanagement and delays, so it isn’t advisable.
Most nomadic developers focus on one or two projects at a time. Then, when they become more confident, they increase this number. However, usually adding more projects requires putting a management team in place.
Do Leverage Technology
Using technology where possible is also a good idea when developing properties as a digital nomad. The more you can pass over to machines, the less work you’ll have to do yourself.
For example, you could offer people virtual tours online and digital contracts. You could also use management tools to keep abreast of everything that’s happening in your property business.
Don’t Ignore Your Exit Strategy
Finally, it is worth noting that you shouldn’t avoid thinking about your exit strategy. Planning for selling and leasing properties before investing in essentials as these give you an “out” that you can use when the time comes.
Developing property across the globe is fun, but each project should have a finish or completion date. If you don’t have that, it will be more challenging for you to calculate your return and you may discover you have less money than you thought.
