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Real estate development for beginners. How to get started in real estate development in 2026. How you guys doing? I'm Sam, also known as the Pro Design Builder. I'm the best in the business, and it's not even close for sure. I try to bring some of the best down-to-earth knowledge to any and everybody that I encounter that wants to take on this pursuit. And one of the ways that we do that is in our Facebook group. So there'll be a link in the description. Uh, make sure you link back to our Facebook group where we are coaching first-time investors, uh, agents, contractors on how to level up their game and get into real estate development. So I'm very excited to bring this training to you where we're gonna dive deep into uh real estate development and how to get started uh early on in your journey, right? So let's let's let's talk about it, right? So let's let's first break down what is real estate development. So if you take a piece of land and you transform it into its highest best use, that's a real estate developer, right? So whether you add value, whether it's a spec home, whether it's a a du, whether it's a duplex, triplex, you know, fourplex, those are some of the things that add value to that particular parcel that makes you a real estate developer. So there's three stages of development. So let's kind of break this down, right? So uh which is first one is finding opportunity, which is land and underused property and converting that into more usable, valuable space, right? Sometimes that's just getting the entitlement or approval for that that conversion, and then the other one is get get it approved from zoning and permitting, right? Which is very important, and then also build or partner on a construction side and the exit to execute on this particular vision, and and that's the three stages in a nutshell. Now, can the projects become more complicated? Absolutely, but if you understand the process uh attached to it, then you you understand how to make that conversion a lot faster, right? So you don't have to build it with your own hands to be the developer, you don't have to be the contractor. Like, for instance, for me, my background has always been as the uh as the design builder, right? And I literally get the architect involved, I get the designer involved, I get the person's vision involved, and I also execute on the permitting and the actual construction of it. So I'm very hands-on in that process. You don't have to do that to understand what real estate development is, right? That was the route I took so I could get a better understanding of all of the hurdles and tripwires and process-oriented things that you need to think about to get a project off the ground, right? So, three ways beginners can start in development. So there's there's the the first one is called infield development, why right, where you take a piece of parcel and you build something of higher value on it. Typically, it's a spec home, right? Like I said, you want to start with one first and then build from there. So you find a buildable lot uh in the city or suburb, and then you build a single family home, duplex or ADU, right? So this is low risk, easier on the permitting, and then urban demand is absolutely necessary. So understanding that we are 4.1 million units short, this issue isn't solving itself anytime soon. So, with that understanding, you know that the needs need to be required, need to be met for people to live comfortably, right? So we're right now we're in a squeeze because we're behind, so that drives also rental rates higher. So the second um stage is flip the land, right? So, what does this look like? So let's let's review on what flipping land looks like. So you control the lot with zoning potential, right? You resell to a bidder, uh, a builder or developer, right? So here's what this looks like: you identify the piece of parcel that is underutilized, right? You get it under contract with the terms that you need to get approval for a highest and best use of that particular parcel uh to be utilized at before you're ready to go with the sale, right? So then what happens is that's when you get your other attorneys involved and getting the approvals and the entitlements to change the parcel into a highest and best use. And then once that is changed, and now they said, Hey, listen, instead of a single family on this three-acre lot, you can build 16 units on this three acres. Do you think that became more valuable? The answer is yes, and then now you could turn that to the builder or the developer that actually has the cash and the resources to actually get that project done, and then now you make your spread um into it. So let me give you an example. So let's say you bought a piece of parcel for or you got it under contract because you don't need to buy it and close on it yet for you know, uh, let's say 50 grand. Right. So you get it under contract for 50 grand with the uh assumptions and understanding that you need to get city approval to turn it into a multi-unit uh um project, right? So then now you get all of the ducks in a row to get that turned into a multi-unit project. The city approves it, they they give you the entitlements for that particular parcel, and then now you could turn around and sell that piece of parcel to a developer or a builder for a hundred grand, right? And then now you make your spread, you make your 50 spread. Obviously, you have some people you have to pay uh in between there, but that's kind of how it's done, right? Increase the value of that particular parcel, and then now you're in the game as a developer as well. So uh the third way to to get in the game as a developer is to is to JV with builders or investors, right? You remember I said if you're missing certain pieces, whether it's experience, whether it's the the GC license, whether it's the cash, right? Find a partner that fills the gap that you don't have, right? So joint venturing with a builder that may be able to shoulder some of that load when it comes to costs and keeping costs down may be a victory for you that allows you to get into the game without the massive expense, right? So, what does this look like? Let's break this down, right? You bring the deal to the table. So whether the deal or or the land, all right. So partner brings experience, license, or capital, right? Whatever the missing pieces are, you would structure that to make it fit, right? And then this is ideal for beginners who are good at finding deals but are not good at securing the financing or securing licensing and getting the project off the ground, right? So you might have to put three pieces together to get this project off the ground, right? You're the piece that finds the deal, and then you need to get the capital part, and then now you need to get the execution part as a partner, and then you structure the deal in a way that everybody wins, right? So everybody wants to win, and it's your job to make sure that everybody does win on this particular project. So let's talk about tools that you might need to get started, right? One of the first things that you need to get comfortable with is just using Google Earth, right? So Google Earth will allow you to pan across different parcels and see what's going on in different neighborhoods and be able to kind of compare and then use the city zoning maps to understand what the capabilities are in maximizing that particular parcel, right? Can you make that particular parcel more valuable by buying the piece next door? There's a chance, right? Will they allow that? There's a chance that you need to find that out, right? So these are the types of things that you need to know. So local planning department equals your best friend, right? So understanding the local planning department, what they're looking for, what you think that they're going to accept or not accept, and not bouncing around with different municipalities is going to be very important in setting up your anchor community, right? You want to be doing more projects in one particular area, and then now they know you, now they have a relationship with you, now they understand the type of projects you want to push, and now you can move projects forward a lot faster because you have the relationship aspect attached to that. So here are some first steps that you could could do to take advantage of getting the ball rolling for yourself, all right. So choose your starting strategy. All right, I went through three strategies, which is infill, flip the land, and joint venturing. So those are the three strategies. Pick one of those, right? How are you going to get started? So you pick one of those, you drive three neighborhoods, find three vacant or unused properties, right? So your second step is find the vacant and unused property that might fit your choice in your strategy, right? Call a zoning department uh and ask what is allowed here, right? They do these meetings for free, right? Sit down with them, take the time, figure out exactly what are they gonna allow, what they're not gonna allow, and then that will tell you the whole story of that particular project. So then from there, you'll talk to the GC and the investors about putting a deal together, right? But if you don't know exactly what they're going to allow, it's pointless to talk to a GC and an investor about what the numbers could potentially look like, all right. And then lastly, step number five, analyze the potential project and make a plan, all right. So that's when your performer would go into place, and that's where you would sign that particular project and kind of nail that down to you know grow it into a uh future uh new building, right? So um, like always, I want to make sure that you hit the the like and subscribe button if you like the content that we're pushing out. Also, too, if you are serious about becoming a real estate developer, click the link below and join our Facebook group. You won't you will not be disappointed. All right, so I hope you enjoyed all the information that I shared on this video. Join me on another video if you want to continue to grow as a real estate developer. Have a good day.