Clayton Perlman is a residential real estate developer but there are different types of real estate. Real estate include:

Retail

Residential

Offices

Industrial

Mixed-use

Area development


Clayton Perlman knows from experience that different areas come with their own risks. One risk associated with residential real estate development is land value risk. "The risk of land value changes with the market. When performing land acquisition, you have to determine the risk that the value of your land will change," says Clayton Perlman.

There are a different factors that determine the type of development that may be useful for an area. "In an area with a large senior population, building mini-mansions is not profitable. Seniors or retired individuals will be interested in smaller, more easy to manage homes like small homes, condos, or apartments," explains Clayton Perlman.

Other factors that affect real estate is the cost of building supplies. Land values vary by region. Also, as price of raw material increases, building large developments may not be profitable for real estate developers. Increased labor costs are another important factor project managers have to consider as well.

"Building real estate is risky because you are essentially building a product to sell. A real estate developer needs their project to be attractive and valuable. There needs to be a demand or want for it," says Clayton Perlman. Essentially, if high-end homes are built in a low-income area, the home won't sell. On the opposite end, in an affluent area where people want large homes with decent yardage, multi-family projects may be spurned.

As a real estate developer, Clayton Perlman understands the extensive amount of research that goes into land acquisition. As a professional, he needs to know what land value is, what it is projected to be, what labor costs are, and what building material costs are. Once the various aspects are known, Clayton Perlman and other land developers can determine whether or not developing property will be profitable.

Clayton Perlman takes many factors into consideration including a region's projected employment growth. Demographics are another important factor for real estate development. Clayton Perlman's own experience has been honed through years of experience working under multiple companies in multiple states.