SANTO DOMINGO.- Civil engineer Wayne Wheeler believes that the figure for what is actually earned in the construction of a real estate project is often distorted, and people talk about 25 and even 30% because they do not take into account the percentage that corresponds to the investor and the developer.
While presenting the workshop “Development and construction of a real estate project” last night, at the certification of the Association of Real Estate Agents and Companies (AEI), the professional who has been dedicated to real estate development for five years, states that in a process of this nature there is a balance of finances because various actors are involved who are entitled to their share of the benefit.
Wheeler spoke online to nearly 100 representatives from various real estate firms, where he stated that the figure obtained should be a minimum margin of 15%, indicating that unforeseen events that may arise during the development of the work should also be taken into account.
The developer emphasized the importance of agents becoming familiar with the construction process "because they will better understand the client's needs, offer a more personalized service, and meet their expectations," highlighting the important role they play in connecting both parties (clients and construction companies).
"A real estate agent must know the areas of a project and its phases to carry out a successful transaction and connect the seller and the buyer, speaking the same language. They must have a deep understanding of the product; a process can last for years, so they must understand it from beginning to end.".
He repeatedly emphasized the importance of building trust during negotiations. In times of crisis, agents must communicate and manage effectively, especially when difficulties arise, to preserve client trust and ensure a mutually agreeable solution, he said while conducting the AEI's Real Estate Certification (CBR02).
“The salesperson must add value; that’s what differentiates a simple agent—managing the relationship and supporting the decision-making process correctly. Building trust is the fundamental element in the relationship; that’s why they buy—they trust you,” he insisted.
He spoke about the various figures involved in the construction process, such as investor, builder, promoter, developer, and real estate agent
Furthermore, real estate development encompasses various areas such as acquisition, design and concept, permitting, trust, sales, finance, construction and after-sales service.
In detailing the entire process that a real estate project goes through, Wheeler mentioned that when acquiring land, one must start by looking at the existing conditions and the square footage.
“The proximity of the project to places like shopping centers and schools is important because nobody wants to be near something that could affect their home. Accessibility is another factor. The location of the project itself, with its historical or other value, is also crucial, as this can complement and add value to the property during development.”.
He emphasized the importance of the real estate agent, noting that the first person called when looking for a plot of land is a real estate agent, who becomes the first advisor in the process.
When discussing the capital structure, he mentioned sales, equity, and short-term loans, noting that sales are the cheapest option because zero interest is paid on repayments. "The better I sell and the more I get paid, the less I have to borrow.".
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Waiting times are a deterrent, Wheeler explains, citing the delays that sometimes occur in city councils when approving projects. “There are staff changes, changes in government, and conflicting internal politics. There are also personal interests at play that don't consider the area or its development.”.
