Terranado Insider

Last time, we discussed some of the key members of your real estate development team.  As you continue to build your team, you will find that you need other consultants that include soils engineers, parking consultants, appraisers, attorneys, title companies, surety companies, and property managers.  Throughout my years in retail development, assembling a team of professionals to address the economic, physical, and political issues inherent in retail development is critical.  As the project increases in size, the size of real estate development team members will increase.  I would recommend that beginning real estate developers hire top-notch professionals with the practical experience and technical knowledge to guide you.  Although some professionals may be a little more expense, these professionals can be worth their weight in gold by making cost saving suggestions to having the necessary political connections to procure approvals for your project.

So, how do you locate consultants? First and foremost, I recommend that you talk to other experienced developers and connect with them through organizations such as ICSC or ULI.  Experienced developers will recommend successful consultants based upon their past experiences.  Reputation, knowledge, and experience separate great consultants from mediocre consultants.  Often, once you are able to secure an architect for your project, the architect can make recommendations of other consultants (i.e. landscape architect, civil engineer, general contractor, and others) that he has worked successfully with in the past. Secondly, identifying consultants that have successfully worked on projects that have impressed public staff and planning staff can help you procure approval for your project quickly and successfully.

Once you have identified a few consultants, selecting a consultant is the next step in the process.  Experience is one of the most important factors in selecting  a consultant.  As a real estate developer, you can glean if the consultant is fit for your project by obtaining a list of projects that he has worked on.  Secondly, talking to the consultant’s references will allow you to gauge the quality of work, professional integrity, and ability to deliver on time and within budget.  Lastly, developing a rapport with the consultant is key.  If you are not comfortable working with the consultant upon the agreed upon conditions and terms, the relationship may not be right.  Signing off until next time . . .

Related posts:

1. Building your Real Estate Team
2. Setting Up a Real Estate Development Shop