Stanley Xu - Property Development the Right Way
The property development industry is becoming increasingly popular. With the profit margins shrinking for those who are doing straight flipping, the profits for developing a property continue to remain steady. To keep your profits from taking a huge hit, there are some mistakes you'll want to avoid.
Before you start your project, you'll want to figure out all of your costs. This includes how much the property is currently worth, how much similar properties are selling for in the area, how much you can sell your property for once the project is complete, and how much it will cost to complete the project. This last part can be tricky, as you don't always know what you are getting into before you purchase the property. Often a building that is in need of renovation may have many problems that aren't visible to the naked eye. Before purchasing the site, have a builder check it out to see if it will be worth the time and money to rehabilitate.
When you begin the process of renovating the property you want to consider what aspects will add value to the property. If you purchase property with limited parking, it might be beneficial to add a garage rather than a formal dining room. Finally, don't waste your money on high-tech or luxury accessories that won't add value to your property. Instead, put the money into upgrades that are more practical or even back into your pocket. Stanley Xu, a real estate developer from Bellevue, Washington makes wise investments. He knows what added features will help increase his profit and only spends his money on residential favorites like in-unit washers and dryers or carports.
Stanley Xu - Looking to the Future
Stanley Xu founded Longwell Company in 1992, and since then, the prevailing investment strategy has been to anticipate what the investment could be in the future. Longwell deals in real estate investment and management. The company primarily focuses on properties that are losing value because of inadequate property management or disrepair. Longwell buys the property, pours money into the proper upkeep and management and, after an average of three years, sells the property off at a profit. It is an investment strategy in which everyone wins. The residents win because their housing complex is improved with more attention paid to the general upkeep and repair, and investors win because Longwell adds value which translates into high investment returns.
Stanley Xu says that he sees his company as a long-term investment company dedicated to the long-term health of any community the company invests in. Xu and his management team look for potential in a given property’s location and the area’s future in terms of development and investment from other parties. Xu also looks for quality in all of his investment properties’ construction, including design and maintenance. Again, he looks for potential for improvement and where the property could be rather than focusing only on where it is. Looking over the long term and what potential returns could be achieved with proper management and maintenance forms the basis of Xu’s investment decisions.
Stanley Xu says that Longwell Company has over 2,200 apartment units in its portfolio, mostly around the Seattle area, but recently the company has expanded to other areas of the country, including Dallas.
Stanley Xu - How to Start a Real Estate Development Business
The United States, more than any other place in the world, is known for its infallible construction industry, which has changed the face of its cities and countryside. The industry has become one of the most powerful factors in today's economy. Being a real estate developer in the United States can be a very lucrative business. However, many first-time developers fail to make a profit or fail completely because they don't have the business and legal skills necessary to succeed.
To start and run a successful real estate development business, you first have to determine what type of development you want to get into. Will you be developing commercial land, residential buildings, building from scratch, or improving on an existing location? Next, you will need to determine your financial resources. Whether you will be funding the project yourself or borrowing from a lender, you will need to create a budget and a timeline to complete the project.
Once you have a budget determined, enlist the services of a real estate broker and begin looking at properties. Once you have located a property to develop, obtain the financing to purchase and develop the property. Once you receive the financing, you will need to have an architect and engineer create the final plans and submit them for approval. Once your plans are approved, you can begin the development. After construction is complete, you can either rent out the space or sell it for a profit and begin looking for your next project. Twenty years ago, Stanley Xu, started his real estate development company in Bellevue, Washington, focusing on purchasing on properties where he can add value to make the greatest profit.
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