Newbie Property Developer - Seeking Guidance

[Kenneth Jiang]

Hey everyone!

I'm diving headfirst into property development here in Chicago, and honestly, I could use a little help from the community.

Here's what's on my mind as I kick off this journey:

1. Finding the Right Deal: How do you all evaluate properties for development in Chicago? Any tips or tools to help a newbie like me spot a good opportunity?
2. Hiring Help: I'm at a bit of a crossroads. When it comes to contractors, should I go with a General Contractor and a fixed contract or consider a Construction Management company? What are your thoughts and experiences with these choices?
3. Materials Matter: I'm curious about sourcing materials. Should I take on the task myself, or is it better to let the pros handle it? Any shortcuts or tech that's made your lives easier?
4. Global Sourcing: I've heard whispers about sourcing materials overseas for a better deal. Did anyone try this? Is there any tool that makes global sourcing easy?

Love to hear your stories and advice. Whether you're a pro or a newbie like me, your insights are valuable to me.

Thanks!

[Caroline Gerardo]

Location, existing zoning, utilities, employment stats, crime stats, rent or lease trends will determine what you target to buy.

How are you going to buy raw land or something to tear down? You have a lender who will do this and you have the down payment/closing costs?

Title work, architect, plans have to be paid for, completed and approved which takes months. Do you have contacts in the planning department have you reviewed the General Plan? How will you make loan payments and pay for these? Assume this is 12-28 months.

You aren't licensed but know everything about HVAC, electric, roofing, plumbing? Who is going to pull permits and get them signed off? You need a licensed contractor on site who is honest, knows the dude at the planning desk, and is in solid financial shape. The contractor is a partner.

So you want to order a faucet from Solex in China. Will it fit the plumbing you install? Where will you store it to avoid theft? What if the container it comes in sink and you don't get it in time? 'just saying. Yes you might be able to save on big ticket items but do you have the skills, management time, credit card band width to order, and storage facility. 

First time I suggest you work for a developer in one of the parts to have skills to rely upon. Are you in Chicago?