Originally Posted by ChiTownWonder
do you have to be rich to be a developer? isnt it more about loans and financing?
Actually, not really. Generally they are rich, but the key to development is using other peoples money. Really what you need are rich friends who are willing to be equity investors so you can secure a construction or rehab loan.
I'm closing on two lots to build 4 flats on and sell as condos this month and not using a dime of my own money. Even better yet, I am trying to tie up three buildings with 13 units total where the current owner owns them free and clear and is contributing them to a JV so I can redevelop them. One of them is a huge 35'x125' corner lot where I hope to build six or more condos on top of retail. It's easy to get the loan when your JV owns the property cash.