Focusing on the Deal: 3 Things You Need to Know to Get Your First New Construction Development Deal Started

When putting together a real estate development deal, it's essential to shift your mindset away from the typical consumer approach of focusing on costs and available funds. Many people are conditioned to think they need all the money upfront before they can even begin a project. However, in real estate development, the process works differently. Instead of starting with the cash, it's far more important to focus on structuring a solid deal first.

The Key Elements of a Successful Development Deal

In real estate development, moving a project forward depends on having three critical elements in place:

1. The Cash: While money is always a factor, it’s not necessary to have all the funds lined up at the start. The key is to have a well-structured deal that attracts the capital you need, whether that comes from a lender, an investor, or a partner.

2. The Experience: Having a solid track record in development makes financing and partnerships significantly easier. If you don’t have the experience yourself, you can partner with an experienced developer like bttrbuild to bolster your credibility and meet lender requirements.

3. The Opportunity (The Deal Itself): Perhaps the most important factor, a viable development opportunity—one that shows clear profit potential—will naturally attract both financing and partners.

   
   

Notice that traditional financial metrics like having perfect credit or a large sum of cash on hand aren’t the first things to focus on. Instead, you should concentrate on identifying strong deals and crafting a compelling proposal that can convince others to invest in or finance the project.

Focusing on the Opportunity, Not Just the Money

Rather than focusing solely on how much money you have access to or worrying about having impeccable credit, real estate development requires you to focus on finding the right opportunity. Once you have a solid deal in hand, you can then seek out the capital or partnerships necessary to bring that opportunity to life.

For example, many hard money lenders and investors are more than willing to fund a deal if they believe in the potential returns. If the deal is sound, you can often convince someone to partner with you, providing the cash you need while you contribute your time, effort, and expertise.

Leveraging Partnerships for Success

If you’re new to development, working with an experienced partner like bttrbuild can make all the difference. As your experience partner, bttrbuild brings credibility, knowledge, and an established track record to the table, making it easier for you to secure financing and get your project off the ground. This approach allows you to focus on what matters most: putting together a deal that works, rather than stressing about upfront financial hurdles.

Ready to Take Your Development to the Next Level?

If you have a potential real estate deal but need help securing financing or bringing together the necessary components for success, bttrbuild is here to help. We specialize in partnering with developers to get projects off the ground, even if you lack experience or initial capital. Schedule a call today to learn more and see how we can help make your development vision a reality!