When I immigrated to the U.S. in 2008, I had one goal: to find success. I thought the path to get there was through multifamily real estate. While it did create wealth, it pales in comparison to what flex space has been able to generate for my business.
We won’t be discussing why I left multifamily today — if you’d like to know why, you can read about it here.
Today’s subject will cover some of the mistakes I made before developing flex space the way I do now. It took my years to refine this process. Why, you ask? Because, habibi — nobody does it like the King of Flex Space!
In all seriousness, when you enter the flex space industry, there are plenty of mistakes that can be made. Today we’re going to discuss some of them. Avoid these to save yourself some headaches — and lots of cash — in the future.
1. Insufficient funding or financing: A lack of adequate funding can lead to delays or even the complete failure of a real estate development project. Structuring your deal to match your unique finances and goals is not an easy feat and has many moving elements.
2. Incorrect market analysis: A poor understanding of the local real estate market can lead to a project that is not financially viable or that fails to meet the needs of the target market. Hamza Invests uses a proprietary method that minimizes potential errors in this crucial stage.
3. Zoning and permit issues: Failure to obtain the necessary zoning and permits can delay a project or even bring it to a complete halt. Having insight and access to consultation for common issues or even unique ones will save a developer time and money.
4. Environmental issues: Contaminated soil, endangered species and other environmental concerns can also detain your project. Our experts can consult on how to handle such issues and whether or not a project is viable.
5. Construction delays: Delays in the construction process can not only push back a target completion date, but also cause a project to go far over its budget. This is extremely costly and completely unnecessary.
6. Cost overruns: A failure to accurately estimate costs can lead to a project going over budget, eating into a developer’s reserves or even savings.
7. Legal disputes: Legal disputes, such as those with contractors or neighboring property owners, can delay or halt a project.
8. Lack of interest or low occupancy rate: A project that fails to generate interest or maintain a high occupancy rate can be financially unsuccessful. I use a unique method to attract the right customers, and have my projects completely leased before completion.
9. Unforeseen natural disasters: Knowing how to protect yourself is priceless. Floods, earthquakes, and other climate-related disasters can cause significant damage to a project and lead to substantial delays and additional costs.
Until now, we’ve discussed some of the mistakes that can often happen during flex space real estate development. But what about optimization?
Sure, you can build a development — and if you manage to avoid these issues, you’re already doing amazing. However, to get the best ROI you can, you want to create flex spaces better than the rest.
In my mastermind, Flex Space Untapped, I’ve saved my members hundreds of thousands of dollars and have set them up for an incredible ROI. If you want to join my network of flex space developers, schedule a consultation with my FSU Team.
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