You may be looking at the flurry of activity surrounding foreclosures and other prime property development opportunities and wondering if you will ever break into the market. It can be much more difficult to do so if you have to compete with a large number of other developers, some of who may have much larger budgets than you do. So, how do you get involved in property development without dealing with the competition? You simply need to find the property development opportunities before they become common knowledge.

Why scanning real estate papers may not be the best method of finding property development deals

Many people who are trying to develop properties use real estate publications such as newspaper inserts or websites in order to locate potential development opportunities. The problem is that when they are made public, suddenly you have a large number of other developers to contend with. This is especially true of some of the larger, highly publicized opportunities that have come on the market recently.

Instead, it is important for you to learn how to find real estate development opportunities early enough that you are dealing with few to no other competing bids and are in control of the negotiating process. There are two things that you need to be able to do in order to find and recognize good real estate deals on a consistent basis.

Know who to talk to about upcoming opportunities

One of the first things that you need to be able to do is know who to talk to about upcoming property development opportunities. There are two main sources of property development opportunities: financial institutions and developers. Both can be equally good sources of potential properties although the opportunities and types of properties are likely to be different.

Banks will often have foreclosed properties that are not being advertised or actively promoted. Because these properties are already in distress you may be able to get them for a lower price than other properties. Make sure you ask about ones that are not currently listed. You may be able to get a steal before it hits the general market.

Developers are also great sources for potential properties. Many developers are having trouble finding buyers for their properties. Speaking with a developer directly may just allow you to get a prime property for a reasonable price.

Learn to spot opportunities that may not be obvious

You need to learn how to spot opportunities that may not be obvious to other developers. This is easier said than done. You need to learn how to envision what a project will look like when it is completed and anticipate whether it will be in demand by the time it is finished. Learning how to do this can take time and may involve working with an experienced and successful property developer for some time. They should be able to educate you on how to do due diligence on a property and figure out which types of properties will be popular in future.