Real estate development is what brings the biggest and best buildings in the world off the drawing boards and into the real world. Their role is to acquire the proper permitting, bring together all of the key stakeholders, and plays a variety of other roles in the whole process. But what is the cardinal rule of real estate investing and why is it so important to follow? This piece will investigate what circumstances created the rule and why it’s so important to follow. Three key points to consider are as follows:
- Developers Are Passionate
- Don’t Confuse Passion With Common Sense
- How Passions Can Change Into Nightmares
Developers Are Passionate
Overall, being a real estate developer is a fairly desirable job. In fact, it was recently rated as one of the top twenty jobs to hold in the United States. Developers must be problem solvers that get to tackle something new every day. The pay can be great, and the stress levels are relatively low. One of the few issues developers find is that at times their passion can be their ultimate downfall.
Don’t Confuse Passion With Common Sense
This is where the cardinal rule of real estate development comes in. Simply put, the cardinal rule is that real estate investments require unwavering common sense. At times, a project can seem like an exciting challenge but may not pencil. The key is to view investing as a means to make money. If real estate developers begin to work outside this scope, risky ventures and poor investments can quickly come back to haunt them.
How Passions Can Change Into Nightmares
Not only can following a passion project quickly become a poor investment, but it can also quickly become a nightmare for your health. There are many studies which suggest that working too much and too hard is one of the worst things for your health. By taking on a passion project that may not pencil out, a real estate developer may have to begin putting in far more hours than normal. As more issues continue to pop up, more work is required which takes valuable time away from your family and is even harder on personal health and relationships. By following the cardinal rule of real estate development, all of these potential issues can be avoided.