How construction companies make the leap into development 🏗️

You've built successful projects for others. Now you're thinking about development - but where do you start?

Most construction company owners have the technical expertise to execute development projects. 

What they may be missing, however, is the network needed to find and structure that first deal.

Success in development comes down to two critical factors: access to deal flow and access to the right professionals. Let's break down both 👇

First thing to know: the best opportunities never hit the market. 

They're wrapped up before anyone else knows they exist, passed through networks of well-connected brokers and agents who only share opportunities with people they trust.

There are the professionals who know about properties months or even years before their owners are ready to sell. 

Building relationships with these individuals is critical.

When you share your capital stack and investment criteria with them, they can match you with perfect opportunities before anyone else knows they exist.

So expanding your network is the first step, but building these relationships isn't just about making connections - it's about becoming someone worth connecting with. 

Your reputation in this network depends entirely on follow-through. We often see aspiring developers get multiple properties under contract but none of the deals materialize. 

Once that happens, the deal flow stops - brokers stop taking you seriously.

The moment you earn a reputation for taking deals seriously and following through, the real opportunities start flowing.

Of course, getting access to great deals means nothing if you can't evaluate them properly. That’s why having the right professionals in your corner during due diligence is equally crucial.

At this point, many aspiring developers make an easy mistake: they assume credentials equal expertise. 

Remember, just because someone has a law degree or an engineering stamp does not mean they have the specific experience you need.

Here's what successful developers do differently:

First, they start with an experienced real estate attorney who specializes in their target asset class. This attorney becomes their gateway to other trusted professionals.

Second, they verify that every professional they work with has deep, specific experience in exactly what they need - not just general expertise in their field. The key is ensuring they've handled your specific situation dozens of times before.

The difference in outcomes is stark. 

The right team helps you spot genuine opportunities and avoid costly mistakes. The wrong team can either make you miss great deals or, worse, push you into deals you should have avoided.

In real estate development, you're only as strong as your network, and that network is only as valuable as your reputation within it.

Forward always, 

Highspire

P.S. Ready to build the relationships that lead to real development opportunities? We help construction companies make this transition every day. Schedule a Consultation with Highspire to learn how we can help you build the right network.