In the world of international real estate, where projects span continents and borders, it is easy to fall into the convenient trap of remote management. Reports, emails and video calls become the main working tools, but are they really enough?
Over the years I have come to understand that every developer carries out his ongoing control differently. As a developer it is important to receive the most real, up-to-date and direct information. In addition to showing those we work with, such as the local partner, contractors, brokers, subcontractors and others, that there is someone here who does not just “put in money” but wants to see work and progress, someone with a finger on the pulse who is “on top of things.”
Danny, a veteran, experienced developer whom I accompany, sat across from me looking crestfallen. He had called and asked to meet after learning from a client who had bought an apartment in the project he is building in a coastal city abroad, and who had visited the site, that the pace of work seemed slow relative to the timetable for completing the works in the agreement. Danny booked a flight, packed a suitcase and flew to the project. When he reached the construction site, he was astounded. Reality was completely different from the reports he had received. Work was proceeding at a snail's pace, and there were problems that had not been reported to him.
“I just don't understand. How can this be. I was there last month and everything looked like clockwork,” he said. “I have almost daily calls with the project manager,” he added. “Sometimes the distance between reality and the report is like the distance between Earth and Mars,” he said, “only when you are there do you really understand what's going on.”
“You can't manage a project by remote control,” I said.
“What do I have a project manager for, and I'm paying him?” he protested.
It turns out that Danny had not installed cameras on the site either, since the project manager had persuaded him that they would be stolen immediately.
“There is no substitute for a physical visit to the site. When the local team sees you, they know they are under control and supervision. You can ask questions and get answers online, including facial expressions and body language,” I said. “On a visit to the project you can feel its real pulse. See the progress of construction, get an impression of the quality of work, and sense the atmosphere on the ground.”
“Never trust a picture, go out and check for yourself” - Donald Trump
Experienced developers know that even the most detailed plans and reports cannot replace the direct experience of visiting the site.
The field reveals to you the small details that can be the difference between success and failure. Changes in the local market, new challenges, unexpected opportunities - all of these are revealed only when you are physically present.
Studies show that the physical presence of leaders and managers in the field significantly improves performance. A Harvard Business Review study found that the CEO's presence at the work site raises employees' motivation and strengthens their sense of responsibility.
“You can't sit in an office in Israel, fly in once a month, and expect everything to happen by itself,” I told him.
Danny is not a young man, and I understand the difficulty of frequent flights and staying abroad for long periods, but I went on and admonished him: “When you visit the project you are exposed to the progress and to factors that can affect the project. You make sure that the reports you received on construction progress match the reality on the ground, that the work is carried out according to the timetables, and that various issues in the business plan find expression. If there is a deviation, you can check and find out the reasons immediately and brainstorm with all the relevant professionals about possible solutions on the ground.
I would even suggest that you walk around the area and learn: are other projects starting to be built in the surroundings? What is the character of the area, the level of cleanliness, the type of population, and also pop into shops on the way and hear from the ground what is happening. Meet with brokers to check the state of the market, time to sale and price levels, and whether sales targets are being met, and what is happening in similar projects in the area,” I concluded.
“Technology is an amazing tool, but it is no substitute for your instincts and your ability to read the field,” he concluded. “It seems that if you want to succeed in international real estate, you have to be there, physically.”
Do you visit your projects? How often? Share
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית