How to Start Your Career as a Real Estate Developer

Are you fascinated by new buildings and structures, wondering how they are made? Real estate developers are the masterminds behind these projects. They are professionals involved in acquiring land, planning, constructing, and renovating while making money. Many people dream about jumping into the real estate game, but they’re often stuck on where to begin. How do you even kick off a career in this field? 

Real estate development is an exciting field that's taking off, and new talent is always needed. Without the right skills, hands-on experience, and guidance, it’s easy to feel lost about how to start and succeed in this field. 

In this article, we will tell you everything you need to know to start your career in real estate development—what to study, how to find work, and tips for succeeding in this industry. 

What skills do real estate developers need? 

Real estate development is full of exciting opportunities. You get to shape communities, build new spaces, and bring fresh ideas to life. 

According to the latest statistics by Glassdoor, the top real estate developers in Canada make about $69,489 per year, so if you plan to hit that average income, you’ll need specific skills. 

What does it take to become a successful real estate developer? Let’s have a look. 

Financial forecasting and modelling

As a real estate developer, you’ve got to nail down project costs, potential revenue, and the overall financial feasibility of the project to guarantee success. 

Using tools to track finances that provide real-time insights into deposit management, commission tracking, and deal statuses, you can easily identify potential risks, track financial transactions, and manage revenue accurately. This way, you can make smart choices to fine-tune your sales strategy and boost those profits.

This also means that, as a real estate developer working with financial information, you’ll need to be comfortable with data to pull out insights from deposit management, deal statuses, revenue, and other metrics that a software or platform will enable you to do. 

Project management

You can't talk about successful real estate projects without project management, which involves all aspects of execution and planning. 

Project management is essential in a real estate development career as it brings all the pieces together to bring a project to life. It includes everything from the initial planning phases to the final selling part, ensuring that each step is timely, strategic, and organized. 

Without good project management, things can go sideways pretty fast. 

In fact, studies show that construction projects often exceed budget by at least 16% due to poor project management. 

So, if you want your real estate development career to succeed, investing in top-notch project management is a must. It ensures everything runs like a well-oiled machine from start to finish.

Negotiation & networking

Any recruiter will tell you that communication remains essential for candidates across industries. But, in a people-focused industry like real estate, stellar communication results in better networking and negotiation skills. 

These skills help real estate developers engage with clients, brokers, and team members to successfully launch and complete real estate development projects.

Market analysis 

Strong market analysis is another skill set that is essential in the real estate development process to spot real estate opportunities. Here’s an overview of how market data reflects trends in Canadian real estate development:

In 2021, over 50% of the total value of properties with multiple residential units was held by for-profit entities in key provinces:

• Manitoba: 59.4%

• Nova Scotia: 56.4%

• Ontario: 51.8%

These insights highlight the prominence of for-profit ownership in multi-residential markets, helping developers and firms evaluate investment hotspots and market demand. By keeping a keen eye on trends, you’ll be well-equipped to spot great real estate opportunities and use them to your advantage.

These skills are a good place to start for what a real estate developer needs in their career. Remember, they require years of development and are best learned through hands-on experience.

Now that you have an idea of the skills needed, the next step is to determine what type of real estate developer you want to be. 

Types of real estate developers 

Real estate developers can choose a niche to work in, focusing on specific projects that cater to unique market demands and growth opportunities. Here are the different types of real estate developers:

Commercial developers 

Commercial developers focus on creating properties for business use. They work on projects like office buildings, shopping centers, hotels, and warehouses. This niche is growing; in fact, data suggests that Canada's commercial real estate market is experiencing a surge in demand as foreign investors seek stable and profitable investment opportunities here.

Residential developers

Residential developers focus on building residences or housing projects, ranging from single-family homes to large apartment complexes. 

Industrial developers

Industrial developers focus on properties that support manufacturing, distribution, and logistics. They work on projects like factories, storage facilities, and distribution centers. 

Industrial developers are quite in demand. A study found that the U.S. industrial real estate sector attracted nearly $87 billion in investments in 2023, making it the second-largest real estate asset class. This is due to booming e-commerce and demand for warehouses and fulfillment centers.

Land developers

Land developers purchase and sell land. This process typically includes rezoning, subdividing, and preparing the land for construction, making it suitable for future development projects.

Mixed-use developers

Mixed-use developers create projects that combine residential, commercial, and sometimes industrial spaces in a single development. 

Retail developers

Retail developers focus on creating spaces for retail businesses, including malls, shopping centers, and standalone stores. The shift towards e-commerce has challenged this sector, leading to a transformation in retail spaces. 

Now, Let’s dive into a real estate developer's day-to-day operations and key responsibilities.

The day-to-day dealings of a real estate developer

One of the world's most well-known real estate developers is Donald Bren, founder of the Irvine Real Estate Development Company. 

Bren is well known for significantly impacting the real estate landscape because of his ability to identify promising properties that could turn into profitable projects, which played a key role in his success. Bren’s work is a great example of how foresight and strategic execution can leave a lasting impact on the real estate landscape.

Real estate developers like Bren take on numerous critical tasks to bring projects to life. 

Here are some tasks that real estate developers do:

Market research 

Developers need to conduct thorough market research to grasp local market trends, property demand, and demographics. This involves analyzing the market using reports and economic indicators.

Buying land 

Finding and purchasing land is a crucial part of the development process. If you want to be a successful real estate developer, you should know that buying any piece of land isn’t enough, but those that align with the project's goals and requirements.

Financing 

Securing financing is key to launching a real estate project, and developers often use a combination of funding sources, such as traditional loans, private investors, or crowdfunding. Each financing route involves weighing interest rates, repayment terms, and investor expectations. 

Project planning

Project planning involves collaboration with project managers, architects, urban planners, and engineers to conceptualize the project design. This stage includes architectural layouts, site planning, urban planning, and determining the project scope to ensure it aligns with market demands.

Securing permits

Real estate developers must obtain a license and necessary permits from local authorities. They also need building codes, zoning approvals, and sometimes environmental impact assessments to ensure the project complies with real estate laws.

Construction management

In the construction phase, developers oversee the project to ensure timelines are met, costs are controlled, and quality standards are upheld. This includes regular communication with contractors, conducting site inspections, and resolving issues. 

Mastering marketing and sales

Real estate developers create marketing plans to promote their finished projects. This is essential for attracting clients in the competitive market. Marketing strategies include social media campaigns, website portfolios, and traditional advertising. 

An important part of marketing is lead generation, which is used to attract more customers and increase the firm’s credibility.

While real estate development seems like a lucrative career, it can get challenging. What challenges can you face if you want to succeed in this field?

5 challenges facing real estate developers today 

Like any career, a real estate professional faces certain challenges, but knowing how to tackle them and putting in the hard work can help you succeed.

Here are five significant challenges that can affect a real estate developer.

#1. Increasingly fierce market competition 

Whether working individually as a developer or with a real estate development firm, you have to face tough market competition. New real estate developers face challenges as established firms usually dominate the market, driving up land and property costs. This can make it tough for newcomers to find profitable projects. 

Entering the real estate market can feel intimidating without a strong network or market know-how. However, new developers can find their niche in this competitive field with smart strategies and networking. 

#2. Project delays 

Real estate can be tricky. Managing different systems, doing things by hand, and struggling with communication can slow things down and stress everyone out. There can be delays in construction projects for different reasons, such as supply chain disruptions, workforce shortages, and unforeseen site issues. 

Without all your info in one place, you might miss important details and fall behind on customer needs. Tools like RYZ offer real-time updates, allowing developers to address potential issues proactively.

#3. Financing and budget constraints 

Budget overruns are frequently challenging in the real estate industry. They are often caused by unexpected expenses that interfere with financing. 

To overcome this, developers can use tools to track costs and make real-time budget adjustments. This helps them stay within budget and avoid financial strains that could disrupt project success.

#4. Rigorous compliance and regulatory requirements 

Real estate agents must meet various standards, like licensing, environmental laws, and safety codes. 

For example, non-compliance with local environmental laws can delay projects and impact revenue. To stay efficient and on schedule, developers can use automated reminders and tracking to ensure regulatory compliance, reducing the need for manual oversight.

#5. Market volatility 

A study examining the effects of market volatility on housing developers found that a drastic shift in prices and market trends means that many residential developers have been forced to pause or cancel their projects. 

Not only is this undesirable, but it could lead to dire consequences such as loss of investor trust, inability to secure funding or invest resources in other projects, protracted project deadlines, and, ultimately, a loss of time and money. 

As you progress through your career as a real estate developer, you’ll find that there are ways to address these broader, market-based issues through on-the-ground changes you make at the organizational-, individual-, and process-level. 

For example, budding real estate developers can guard their bottom lines against the gales of market volatility by harnessing software for real estate developers and using its features to zoom out, identify inefficiencies in sales processes, and seal the gaps. 

This could mean taking actions such as:

• Pausing transactions when buyers need extra time to secure financing, which enables you to call the shots on extending the right amount of flexibility to maintain the deal, ensure you get paid, and strengthen a relationship with a customer.

• Adjusting deals to match market conditions through instruments like discounts or extended payment plans to meet buyer needs.

• Automating unit returns, canceling unpaid deposits, and recovering commissions from failed deals are all options that support identifying areas of potential loss and opportunities to gain back revenue (without additional manual input needed).    

While market volatility may not always be predictable, experienced real estate developers know that their advantage lies in controlling what they can control — which is why it’s so crucial to use the visibility offered by a real estate development tool. When stacked together, these micro-actions significantly (and positively) soften the inevitable shocks of macro-factors.

What is required to become a real estate developer?

The great thing about becoming a real estate developer is that there’s no one way to enter the field. You can tailor your path to your needs — just make sure you follow these four broad steps.

Step #1: Building industry knowledge

Although a traditional real estate degree can give a solid foundation, practical experience and certifications like a CRB (Certified Real Estate Brokerage Manager) can go a long way in equipping real estate brokers with hands-on industry knowledge. 

Several other resources can be helpful for real estate developers. Here are two examples:

• The Real Estate Development Matrix by Daniel Kohlhepp offers a clear, step-by-step breakdown of the development process, making complex stages easier to understand. 

•  Professional Real Estate Development by Richard Peiser covers the fundamentals of project planning, financial analysis, and risk management, all essential skills aspiring real estate developers need.

Books and certifications are just one part of building industry knowledge and working as a successful real estate developer. You’ll also want to support that learning with on-the-ground experience.  

Step #2: Licensing

Licensing is one of the most important steps because developers need licenses and permits related to land use, zoning, and construction. Additional certifications like environmental compliance or property management may be required in some areas, especially for specific project types. 

Step #3: Focusing on a specific niche

The real estate sector is vast, and instead of dabbling in everything, developers can build expertise by focusing on a specific niche. For instance, they can specialize in residential, commercial, or sustainable projects and build a clientele around them.

Step #4: Setting goals

As you progress in your career as a real estate developer, you’ll quickly realize that setting and tracking both short-term and long-term goals is essential for achieving business success and personal growth. Clear goals provide direction and help you measure progress and adapt to challenges.

Short-term goals include:

• Securing initial funding: building relationships with investors or securing loans to kickstart a project.

• Identifying lucrative opportunities: conducting market research to pinpoint high-potential properties or development areas.

• Building a reliable team: Assembling a group of skilled professionals, from architects to contractors, to bring your projects to life.

Long-term goals include:

• Establishing a strong reputation: becoming known as a trustworthy, innovative developer within the industry.

• Expanding your portfolio: Managing various projects, from residential to commercial developments.

• Mastering sustainability practices: incorporating green building techniques and avoiding environmental regulations.

As with any other field, proactive and aligned goal-setting builds a strong foundation for continued success and growth as a real estate developer. 

So you know what it takes to become a real estate professional—but it doesn’t end there. Gaining relevant experience after you start is essential for success.

Gaining experience as a real estate developer

The more you work as a real estate developer, the more you'll learn about different stages of the development process, making you better at your job. Here are some ways how:

Network with mentors and professionals

It’s always helpful to network with people in the same business. This helps you find opportunities and establish yourself in your field. Remember, you can always learn more than what you already know. Some network ways include attending industry events, joining real estate-related groups, and engaging with local real estate associations. 

Invest in ongoing mentoring

Real estate development is a team effort — success in this field, especially property development, usually requires working with others. 

Mentorship is an invaluable resource for career growth through which you can learn from experienced professionals in the same field. A mentor can offer industry insights, guide you through complex project decisions (especially if it is your first project), and connect you with valuable contacts.

Connect sales and marketing to business outcomes

In real estate development, sales and marketing work together to help aspiring developers succeed.

Sales and marketing teams can work together to:

• Find leads.

• Turn leads into customers.

• Understand customer needs and market trends.

• Create campaigns to attract and engage customers.

• Build long-lasting relationships.

By keeping everything in mind, you’ll have a solid foundation for entering the competitive real estate market and making a successful career.

Start Your Career in Real Estate Now

Real estate development can be a promising career path for you. The necessary skills, relevant experience, continuous learning, and networking can set you up for success if you decide to pursue this career path.

Moreover, tools designed for real estate like RYZ can help you sell homes faster and manage every step of your work, from initial inquiries to managing warranties. Learn more by booking a demo.