A 75 million dollar investment in Maine’s Piscataquis County could create up to 400 job opportunities and accumulate property taxes of about $2.9 million every year, Bangor Daily News reveals. Perry Williams, a Knox property developer, and Louisiana’s Provident Resources Groups plan to construct a ski resort viewing Moosehead Lake. Provident will team up with Perry’s firm, Big Lake Development, to source funds for the development project using bonds already authorized by the Finance Authority. The proposed ski resort will have a marina, hotel, ski lifts, condos, and other facilities. Investing in property development provides consistent cash flow opportunities, making it one of the best retirement income streams. If you’re looking to become a successful property developer, here’s how to develop property in Maine.
Consider Economic Feasibility
Before you can start developing commercial property, write down your desired return on investment. Then research your market carefully and determine if there is a demand for commercial properties. This step is crucial as it helps reduce the uncertainty of the market. Moreover, it provides a model to calculate the expenses and profit aspect of your real estate investment. Although your calculations may only be estimations, knowing your project’s feasibility prevents you from common property development pitfalls.
Learn About Construction Beforehand
Understanding the construction phase in advance is critical if you want your project to run smoothly. For instance, if you’re constructing commercial property from the ground-up, be prepared to set up a competent project team. You’ll also need to establish a budget and perform a risk analysis to boost your project’s success. Site preparation is another critical aspect to consider during the construction phase. It entails soil testing and removal of existing architectural structures, select trees, and debris. To ensure your site is ready for grading and paving, consider hiring land clearing Maine contractors. Professionals will help complete your land clearing and brush removal project within the set deadlines to help you save both time and money.
Developing properties that you can afford to invest in on your own might sound reasonable, but it is not always practical. To succeed in the real estate market, you’ll need to obtain financing from external sources. Therefore, take time to learn and understand how you can get extra capital to finance your project. There are many financing options available for property development projects you can choose. You may decide to take a loan or obtain funds through equity financing, crowdfunding, or debt financing. However, it is important to remember that borrowing money for property development can be daunting, especially if you’re new to real estate. To increase chances of getting finances, demonstrate high credibility and apply for loans with multiple lenders.
Investing in property development is a sure way of creating profitable income streams. However, getting started as a real estate property developer can be challenging. To become successful, you must familiarize yourself with all aspects of land development. Ensure you know your region’s zoning laws, how to finance development projects and economic feasibility.