Category: Kyle Corkum

Kyle Corkum Discusses Amateur Property Developers Most Common Mistakes

Kyle Corkum

In recent years, popular HGTV shows like Property Brothers and Fixer Upper have inspired a new wave of amateur property developers to try their hand in the real estate industry. While it is easy to see why many people are drawn to this exciting, creative, and dynamic field, experience property developers recognize that property development can have its fair share of setbacks that can be both costly and time-consuming. Kyle Corkum, founder of LStar Ventures and experienced real estate developer, has taken note of this new wave of amateur property developers and hopes to share his knowledge with this new generation. Below, Kyle Corkum will discuss some of the most common mistakes made by new developers.

Failing to Accurately Estimate Development Costs

Oftentimes, inexperienced developers can underestimate the true cost of a project and believe they can complete a project on a budget. This can often be a costly mistake in the long run. After a project’s documentation and design have been completed and the true cost of building and labor have been calculated, amateur developers will often back out or shelve the project. When planning a project, it is essential to accurately estimate the project’s true cost to avoid wasted time and funds.

Cutting Costs

While it is always important to always reduce costs during a project, cutting corners and choosing cheap labor and materials can often cause additional problems and costs later in the project. Additionally, the quality of a project can greatly impact the final purchasing decision of buyers. It is not uncommon for developments to fail to sell because a developer has chosen to use the cheapest building materials available. New developers should aim to find cost-effective solutions rather than cheap materials or labor.

Developing a Property to Personal Tastes

One of the most common mistakes made by inexperienced developers is building or buying a property to an individual’s taste. While it is important to stand out on the market, building an individual’s dream home can tip the scales and make a property too specific for buyers looking to make a property theirs. A good and experienced architect should know how to find a middle ground between unique and individualistic when designing a property and increase the property’s appeal to the general public.

Kyle Corkum Discusses Real Estate Development the Site Selection Process

Kyle Corkum

Each year, more than half a million real-estate development projects are completed in the United States. As one of the fastest-growing industries in the United States, real estate development has quickly become a highly desired career path for many real estate newcomers. Kyle Corkum, LStar Ventures founder and real estate developer, has seen the industry flourish in the past ten years and believes that real estate development will continue to drive the real estate market. Today, Kyle Corkum of LStar Ventures hopes to share insights into the site selection process to aid the next generation of real estate developers.

Defining the Requirements

Whether it be a set lot size or ideal neighborhood, every real estate development project has specific guidelines and requirements for the site selection process. In order to select a sufficient number of sites for consideration, a developer must know what prospective clients and their team are looking for. Some common considerations for the initial site selection process are:

–        What is the total property size?

–        What is the terrain, and is their proper access? 

–        Is there pre-existing infrastructure?

–        Is the site on a hard-corner, and is there adequate visibility?

–        Are there tax incentives?

–        What is the status of the surrounding communities? Up and coming or established?

Choosing Sites:

During this stage of the site selection process, research is key. To be able to fully consider a property, necessary research into the location’s background, zoning requirements, and grading must be completed. In addition to these questions, real estate developers must also consider:

–        What earthwork is involved?

–        What is the full extent of demolition that is required?

–        Will there be potential site work during later stages of development?

–        What is the condition of the property?

–        Is the property actively for sale? Will additional negotiations be needed?

Narrowing Down the List:

Perhaps the most challenging stage of the site selection process is creating a final list of potential sites. After properly researching each site, real estate developers must consider each site’s possible costs and, therefore, must create a rough development plan and timeframe for each property. Once this stage is completed, property developers should be able to make a more educated and informed decision about which property to choose for their development project.