Real estate development is a puzzle

Remember the first time you picked up a Rubik's cube?

How did it feel? Did you know how to assemble it to achieve that satisfying uniform pattern on all four sides?

It took me a while to learn. First, I did it without any technique, which took me days to figure out.

Then, I realized that the kids accomplishing it faster had a technique.

I learned the technique after a healthy dose of YouTube videos and some practice. Days turned to hours, and I could solve the cube faster and more efficiently after some time.

To this day, I remember that technique, and I can use it forever to solve that darn brick. (Here is a guide if you're wondering)

Today, real estate development is my equivalent of a Rubik's cube. It can be solved based on intuition but will take much longer. Like the cube, it's better to learn the technique first, then rinse and repeat.

There are many smaller puzzle pieces, but I like to keep it simple and have identified three key components: design, construction, and financials. Mastering the orchestration of these elements can facilitate the development process.

Let's explore these further.

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Design:

The architecture, engineering, and the often complex municipal approval process lay the foundation for the project's design.

Design isn't just about aesthetics. Functionality, compliance with regulations, and alignment with market demands play a role as well.

Successful developers know that investing time and resources into the design pays off in terms of time and construction costs.

We mainly deal with mass residential construction, and one of our first designs was our trusted 1636 model, where we paid little attention to the architecture and space within it in our initial design.

We soon found out DURING construction that the design had two major issues,

1. Some of the door openings didn't contain precise measurements. Ordering doors for these measurements (or lack of them) proved more expensive because we had to do custom measurements and fabrication.

2. The kitchen layout was too narrow. We immediately knew clients would prefer to avoid squeezing between the dining and cooking areas while eating family dinners.

After this first iteration (over 50 homes), we hired an architect with good taste and a sense of efficient space. He corrected the design choices within the first set of plans.

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Construction:

The construction piece transforms plans into reality.

The attention to detail and adherence to the design specifications are crucial here.

Effective project management, skilled labor, and quality materials are the keys to this puzzle piece.

Effective project management means coordinating all of the different construction steps to be on time and as close together as possible.

There is a concept in project management called the critical path. The critical path is the sequence of tasks that must be completed on time for the project to finish as planned.