Looking To Landlord? 4 Things To Do Before Building An Apartment Complex

Looking To Landlord? 4 Things To Do Before Building An Apartment Complex

Real estate investment has long been known as one of the best ways to generate wealth over the long-term. Although many real estate investors start out with single-family homes, there are some who prefer to go big at the outset by building their own apartment complexes. If you are a young real estate investor preparing to get into your first apartment complex development project, here are four things you should do before building.

Looking To Landlord? 4 Things To Do Before Building An Apartment Complex

Find the Perfect Piece of Land

All real estate development projects start with finding a suitable piece of land. Empty land is best, but if you live in a crowded area, you may have to settle for a piece of land that is already occupied. Keep in mind that removing buildings that are already on the site will add to the overall cost of your project. Also be sure to find a piece of land that is close to amenities and main roads, as that will make your finished apartments more appealing to potential tenants.

Get an Architect to Design Your Buildings

Before getting too far into the planning phase, you should have an architect’s plan for the apartment buildings you plan to put up. This plan will be essential in securing financing and getting the necessary approvals for your complex. Try to find an architect who has designed apartment complexes before, as they are somewhat more involved than building a traditional single-family home.

Get Zoning Approval

In the vast majority of cases, you’ll need to get the land you’ve found properly zoned by local authorities in order for you to be able to put up your apartment buildings. This process can be long and drawn out, but you won’t be able to proceed with construction without it. Try to present your project as a benefit to the community at large and show how much you expect to invest in local contractor labor, as this will generally make local councils and boards more likely to approve of your plan.

Put Together Financing

Though logistics and planning are important, finding the money to bring the project together is the most critical part of any real estate development. Generally, the easiest way to fund an apartment complex is to take out a business construction loan from a company like LCNB National Bank or someone similar. This loan will make it possible for you to build your complex and prepare it for incoming tenants. Be sure to take out a loan you know will be large enough to cover your needs, as there’s nothing more frustrating than getting a project nearly done and then running out of money for completion.

Building an apartment complex will be difficult, but if you stick with it, you’ll be able to create a great investment project. Remember that planning is key in real estate. The better prepared you are, the more likely you’ll be to succeed.