CRE Development Basics: Building a Neighborhood That People Want to Live In

 Posted on December 00, 0000 in Commercial Real Estate

People measure real estate success in different ways. For some, it is their bottom line. Others only feel they are successful when they meet a certain investment goal (i.e. closing a specific number of deals in a year). Still, there are some who set their sites on sustainable, long-term wealth.

Building a Neighborhood - How Positive Community Impact Improves Investor Wealth

While there are those who fail to see the correlation between community development and long-term wealth, data shows that small-scale developers tend to build a stronger, more stable stream of income when they become intimately involved with the community in which they are developing. That is because they take interest in what the community wants, rather than simply relying on what is “trending,” which can be extremely important in certain parts of a city.

As an example, consider an area where the median household income demographics are lower than the city's overall average. Employment rates in this area are low, and most of the workers are in the labor industry. Now envision an area with high-earning individuals, where unemployment rates are low and workers are highly educated and skill levels are diverse. The needs and desires of these communities would be extremely different, and not catering to them could displace residents or, in the worst of circumstances, lead to significant loss for the investor.

Alternatively, if an investor focuses on providing housing that meets the needs and budget of their neighborhood, they are more likely to find reliable, paying tenants. Likewise, if that investor also purchases nearby shops and rehabs them, they enable employment for trade workers and encourage an increase in local, small businesses, thereby stimulating the local economy. In turn, they can drive up the median household income and slowly build long-term, sustainable wealth in a community that people would be proud to live in.

Starting Small is a Critical Element for Success

It might be tempting to jump into a neighborhood, head-first, but it is important that investors start with small-scale projects. Doing so allows them to get acclimated to the neighborhood and its needs while also building trust with the members of its community. Small-scale growth also reduces your overall risk of financial failure if a community simply does not respond and grow the way you had hoped. If you are not sure where to start, contact a seasoned attorney for guidance and assistance in finding that perfect first project.

Contact Our Naperville Real Estate Lawyers

Whether you develop commercially or residentially, Lindell & Tessitore, P.C. can help. Seasoned and experienced, our Naperville real estate attorneys are some of the most trusted in the state. Call 630-778-3818 and schedule a personalized consultation with our offices today.

Source:

https://ithacavoice.com/2019/04/how-do-you-build-neighborhoods-people-want-to-live-in/