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Are you thinking of establishing an apartment complex?
First things first, you’re onto something great. Investing in rental properties is a smart decision that will pay off handsomely.
However, building an apartment complex isn’t the same thing as building a house. The concept is the same, yes, but the massive size of a complex throws many spanners in the works. There are several moving parts that need to function together seamlessly for the project to complete on time and within budget.
To help you out, we’re sharing a helpful guide on how to build an apartment complex.
Develop a Plan
You already have a mental picture of the apartment complex you want to develop. The first thing to making your dream a reality is to draw a plan.
This isn’t something you can do yourself unless you’re an experienced architect. All you need to do is explain your vision to an architect and they’ll put it down on paper.
Once the plan is ready, a quantity surveyor steps in. They’ll draw a a bill of quantities, which also includes the project’s cost breakdown.
You’ll have a good idea of the amount of money you’ll need to invest in the apartment complex.
Raise the Capital
An apartment complex is a capital-intensive investment. Depending on the size of the establishment, you’re going to need anywhere from hundreds of thousands of dollars to several million dollars.
Do you have the kind of money the project requires?
If yes, you’re good to proceed to the next step. If not, you have to find ways to raise it before the project commences. Most investors who need to raise cash do so via bank loans or by partnering up with other investors and pooling capital.
Hire the Chief Contractor
Several contractors are involved in the development of an apartment complex, but there’s always the chief or primary contractor who is responsible for the delivery of the project.
Some investors who have engineering or project management backgrounds elect to become chief contractors. If you want to take this path, be ready to hire and manage several other contractors.
You’ll also need to bring in earth-moving machinery and other earth-moving equipment. Lucky for you, with companies such as Tadano, this won’t be a difficult task.
The other option is to hire a chief contractor and let them do everything else. This will increase the cost of the project, but it’s the most hassle-free way to go about developing an apartment complex.
Once the project begins, keep an eye on its progress, especially if you’re not actively involved as a contractor. You want to ensure everything is going according to schedule.
That’s How to Build an Apartment Complex
You’ve got a good vision, but that’s only the beginning. Bringing it to life is the hard part. However, with this guide on how to build an apartment complex, you now have a clearer idea of how to go about it.
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