Reasons Why Real Estate Development Projects Fail Or Are Most Times Incomplete.

I have written many articles on real estate investing and investment property management prior to this time but I really don’t feel or know if am doing the right thing and most times I always don’t feel its right to share some critical, crucial and over-arching aspect of real estate, that is real estate development which you can only come across while on the field work

I deliberately decided not to do much on or write posts on real estate development which happens to be the goldmine of real estate investing but somehow am digging my hands and sharing information on what should be kept secret because they say a prudent man conceal his knowledge but a fool proclaim their folly, and sincerely I really don’t know how you see me now for sharing this post.

I know I wont be doing much of this inform of articles but there is need for me to show my strength in this aspect of real estate investing and that explains why this post is designed not only to show my nifty real estate development approach and strategies but also to help serious investors understand what they are doing wrongly in handling real estate development projects.

I am quite sure this topic is familiar to many of us and we have seen or heard about many cases of failed projects or uncompleted projects and that is about all people know but am certain that only a few understand why real estate development project fails or are incomplete or take time to find out what could be responsible for failed or incomplete projects as well as suggest what can be done to avert project failure or to design or develop smart ways to succeed with real estate development projects.

It might interest you to know that even the few who understand why real estate development project fails may not understand what am about to share with you because you only get this experience on the field or project site and am not here to bore you with the usual and ever fixed real estate investing and development challenges and regulations investors must adhere to and comply with, which many are so quick to blame their project failure on.

But am here to show you and let you see what you need to change in your approach in handling real estate development projects to extricate you from the most common pit-falls of real estate investing and development of projects and reasons why many development projects fail which include screwing up courage to take responsibility and take charge of supervision as investor even though the project is contracted to a contractor.

If you desire a successful completion of your project you must create and make time to be part of the supervision to ensure all the task are carried out according to the plan and contract and to achieve this you must pay attention to details, you must have a functional and accurate plan and budget for your project, you need to have a considerable supervision of the project not only to avoid over-rages but also to ensure there is no shred of evidence of impropriety of contractors in handling the project.

It’s important to contract or let only the right contractors with the right subcontractors and of course with a reliable workforce handle your real estate development projects and you must know that screening and picking contractors to handle your real estate development project is no time for namby-pamby attitudes and investment decision making.

I need not belabour the importance and the need to have a decent contract with all the elements required for a successful real estate development is critical to timely completion and delivery projects as well as the overall success of real estate investing and development project.

I quite understand why many investors find it extremely difficult in successfully handling real estate development projects and why they hardly record much success talk less of making profit from real estate development project and if you ask me this best explicates why many investors are frustrated, confused, embarrassed and they grief because many times this lead to disagreement between them and contractors handling their development projects which in most cases are dispute are settled in court in a lawsuit .

In my understanding and opinion, the reasons for this is inadequacies in pre-project planning, negligence in important aspect of real estate development that is most essential to successful and timely project completion and delivery and of course lack of clauses, contingencies and requirements to protect the investor in the contract agreement and many other issues that is beyond the scope of this post which I may not be privilege to share with you.

The element of surprise which amuse me every time I see or hear about failed or incomplete real estate development projects be it individuals, private, public or government projects is the fact that many are still blind to the reasons for the project failures and are busy groping for answers in the wrong places are are easily blamed on lack of funds and some many other things that come to their mind.

Interestingly some other investors blame their project failures on effects and negative impact of government related policies for building codes or construction rules, laws,regulation etc which to me are the usual real estate investing and development challenges as I have mentioned earlier in this post which could be devaluation of currency by the government, burdensome process of land allocation, registration bureaucracy, high cost of building materials for project development, taxation, bribery and corruption, omo oniles palava etc.

Patently, all of the above real estate investing and development challenges can badly affect the success of a real estate development project if not conscientiously dealt with but besides all of these government related real estate challenges and difficulties which I know for sure no one has control over but rather learn how to manage, cope and find great and reasonable ways around it by facing the realities in real estate investing and development projects.

However, there are many more devastating challenges I know we have control over and we need to checkmate and ensure are done the right way some of which I have shared in this post and many more others I have not touched but many still don’t think it is necessary to factor in all these other important issues into consideration when planning their real estate development projects and they ignorantly and completely disregard them.

I would love to call it a day here and I am gradually sharing in bits from the depth of my strength in real estate which I never had intentions of sharing but as part of my commitment and dedication to help you demystify humongous and heavy real estate burden, issues and concerns somehow I just have to let you into it.

Best of Luck!

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Ordiez Resources Inc, Where The Future Of The Real Estate Industry Begins, This Is How Tomorrow Moves In Real Estate Investing And Investment Property Management, Serving And Guiding Humanity http://www.ordiezresources.com

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Hence If you Think real estate, Think Ordiez Resources Inc

Thanks
Olatunbosun Idowu
For Ordiez Resources Inc
@ordiezresources

 

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