Real estate development is one of the most transformative and rewarding careers, even if it’s not commonly glamorized like being a lawyer, doctor, or accountant—especially in the Bahamas. However, the impact of this field on communities and the opportunities it creates for wealth generation make it an incredibly fulfilling endeavor.
Most of the wealthiest individuals worldwide have significant real estate portfolios, often passed down through generations. That said, while real estate development can be a lucrative career, it also comes with considerable risks. The saying, “Scared money don’t make no money,” rings true here—if you’re risk-averse, this may not be the field for you. But if you’re a risk-taker and love the idea of creating value for communities, read on.
What is Real Estate Development?
At its core, real estate development is the process of transforming land or existing properties into valuable, usable spaces that meet market demands. The goal is to create value not just for the developer but also for the community—whether it’s by increasing property values in a neighborhood, fulfilling housing demand, or creating new supply. Done thoughtfully, real estate development is about much more than profit; it’s about making a lasting impact.
Unlike what some might think, this field doesn’t have to be overly competitive. Development thrives when there’s collaboration. For example, if one developer builds an office building and another builds a shopping plaza with eateries next door, the projects support each other, creating a vibrant neighborhood that benefits everyone.
The Reality of Real Estate Development in the Bahamas
In the Bahamas, real estate development is still an underrepresented career path. While nearly everyone knows someone who owns rental properties like a duplex or triplex, large-scale development isn’t often seen as a viable career for most Bahamians. That said, the field is open to anyone willing to take the plunge.
Ten Truths About Real Estate Development
1. Developers Rarely Use Their Own Money: Most developers finance projects with a combination of loans, investments from family and friends, or partnerships. Typically, they only put 2-5% of their own funds into a project.
2. Other Developers Are Allies: Development is not a zero-sum game. Active projects can boost the market, benefiting everyone. Collaboration often leads to stronger communities and higher returns.
3. Having a Niche is ok: Specializing in a specific type of development, such as mid-income housing, student housing, or office buildings, can help you stand out and build expertise.
4. Research is Everything: Before diving into a project, study the market. For instance, building a hotel may sound appealing, but does the area need more rooms? In the Bahamas, obtaining reliable market data can be challenging, but it’s critical to do your due diligence.
5. Run the Numbers from Day 1: Proformas are your best friend. Calculate all costs and potential returns to ensure your project makes financial sense. For example, building a $10 million home near a prison and expecting to rent it for $15,000 a month is a recipe for failure.
6. Network: Talk to everyone—contractors, interns, and even the “yard man” on-site. You’d be surprised at how much insight you’d gather from random conversations.
7. Build a Trusted Team: Find contractors and professionals you can rely on, and treat them well. Horror stories about contractors disappearing with funds are all too common and should be avoided at all costs.
8. It Takes a Village: Real estate development is a team effort. From architects and engineers to construction workers and financial advisors, every role matters. Be ready to collaborate and value everyone’s contributions.
9. Keep Learning: While a formal degree isn’t required, continuous education is essential. Whether it’s learning about new construction technologies or taking courses (such as Georgia Tech’s MRED program, shameless plug), staying informed will set you apart.
10. Trust Your Gut and Take Risks: Many top developers regret not taking chances when opportunities arose. Start early, even if it means saving aggressively from a young age to buy your first property.
How to Get Started in Real Estate Development
Getting started in real estate development involves a combination of vision, research, and action. Here’s how:
1. Secure a Site: Whether you’ve inherited a property or have your eye on a piece of land, start by understanding the best use for the site. Study its zoning, location, and potential demand.
2. Source Financing: Develop a solid business plan and approach local banks, financial institutions, or potential investors to fund your project.
3. Make a Plan: Conduct a feasibility study to determine whether your idea is viable. Consider reaching out to experts like Teland for an in-depth site analysis and guidance on your project.
Real estate development is not just about building structures; it’s about creating spaces that enhance communities and generate lasting value. If you’re ready to take the leap, start small, plan carefully, and build a team you can trust. Your journey in development could be the foundation for something extraordinary.
– Tylen Deal, Project Manager at Build Wise | Founder and Operations/ Client Manager at Teland Development Partners