Once you’ve mastered the art of buying and selling homes and are ready to level up your real estate career, development may be your next strategic move. Building multifamily units, ADUs, or mixed-use properties can be a powerful wealth-building opportunity—but it comes with a new set of challenges and responsibilities.

Start With a Clear Plan

Successful development starts with vision and clarity. What are you building, for whom, and why? Are you creating long-term rentals, for-sale townhomes, or short-term housing solutions? Your answers will guide every other decision, from location and layout to timeline and budget. Most experienced developers begin with a feasibility study, evaluating zoning, density, permitting, and return on investment before ever breaking ground.

Understand the Financing Landscape

Financing a development project is nothing like securing a traditional mortgage. You’ll need to be familiar with construction loans, private capital, bridge funding, and even potential syndication. Lenders want to see more than equity—they want detailed pro formas, cost breakdowns, exit strategies, and experience. This is where many first-time developers get stuck.

Your credit, liquidity, and collateral will all matter. But so will your ability to demonstrate a viable plan and surround yourself with the right support team.

Build the Right Team

Development isn’t solo work. You’ll need land-use consultants, architects, general contractors, civil engineers, and attorneys who understand local ordinances and permitting processes. If you’re new, the best first step may be partnering with an experienced developer who already has trusted connections in place. You bring value with your market expertise, client network, and willingness to learn—while they provide the framework, systems, and capital support.

Zoning, Codes, and Timelines

Every city—and sometimes every parcel—has unique zoning regulations. You’ll need to understand floor-area ratios, setbacks, parking requirements, and density allowances. Plan on regular contact with your city’s planning department. The permitting process can take months, and timelines often shift. Make room for delays, and always have a contingency budget in place.

Design With Purpose

Form follows function. Work with your architect and designer to create units that reflect today’s market demands. Think flexible layouts, energy efficiency, and storage space. Consider how shared walls, natural light, and privacy will impact long-term value. In San Diego and similar markets, maximizing outdoor space and adding rooftop amenities or EV-ready garages can increase both desirability and appraised value.

Your Entry Point Into Development

If you’re not ready to lead a ground-up project, start smaller. Consider investing in a small multifamily project as a limited partner. You’ll get insight into timelines, construction issues, and financial structure—without taking on full risk or responsibility. Once you understand the process, you’ll be more prepared to build something of your own.

Becoming a Self-Starter and Embracing Risk

If you're starting to feel the pull toward real estate development, you're not alone—and you're not behind. Many successful developers didn’t begin as bold risk-takers. They started with curiosity, a desire to build something meaningful, and a willingness to learn.

The truth is, you don’t have to be fearless to get started. You just need to be willing to take the next small step. Maybe that means touring a local project, connecting with a builder, or running numbers on a potential lot. The self-starting mindset builds over time—as you gather information, make connections, and begin to see what’s possible.

Risk will always be part of the equation, but it doesn’t have to stop you. Start by learning how to assess it, ask better questions, and surround yourself with people who’ve done it before. Development isn’t about knowing everything—it’s about moving forward even when you don’t.

Ready to take your real estate career to the next level?
Team Hanna works with experienced professionals to help turn ideas into real property. Whether you need help with strategy or the connections to get started, we’re here to help. Reach out today to start the conversation.