Three Keys to Success as a Black Developer
by Donald R. Washington, Jr.
Founding Principal at Bolster Real Estate Partners
Bolster Founding Principal Donald R. Washington, Jr. speaking at the Georgia Tech Scheller College of Business.
One of the driving forces behind my decision to launch Bolster was the impact our developments would have on surrounding communities. This was especially important to me as a Black developer working primarily in underserved neighborhoods where disinvestment has been a common occurrence.
My first real estate endeavor involved purchasing a piece of property in a moderate-income neighborhood and renting it to a low-income single mother. I eventually offered her the opportunity to buy the home, making her a first-time homeowner. Thinking back, I realized that even though the project wasn’t overwhelmingly successful on paper, I was able to foster positive change on a human-scale. This experience is an excellent example of how Black voices are needed in real estate to introduce a fresh perspective on how to meet people where they are and foster change.
For Black developers considering how to navigate an industry where voices like our own are few and far between, all while trying to shift perceptions of how to develop responsibly in minority neighborhoods, the process can seem like an uphill battle. Thankfully, I’ve found that by laying out your business goals, cultivating mutually beneficial relationships and leveraging your differentiators, it’s less daunting than it seems.
South Downtown emerging development site tour.
Here are the three keys to success as a Black developer:
1. Grow your business at scale. Before founding Bolster, I developed a core set of business values and criteria that help guide our approach. It’s important to establish these parameters early on, especially as you work to grow your business sustainably. If you’re considering working on 10 units, create a plan for 100. If you’re working on 100 units, create a plan for 1,000. Securing $8M with one family office relationship to fund my $35M project was much easier than securing $300k from a number of smaller investors for a $1.2M project. As a result of its scale, community impact and my current deal team, I was able to secure a letter of intent for up to $300M for my next project. Make it your goal to get to scale as soon as possible so that your broader community impact can multiply.
Rendering of Bolster’s inaugural project, The Kourtney at Yates Road.
2. Establish strategic partnerships. Being able to leverage the track record and expertise of others is invaluable. Find your niche, become a student of that industry and seek out the innovators in your space. A mentor can offer a roadmap or blueprint for how to maneuver an unfamiliar situation or connect you with someone who does. Relationship building is a crucial foundation for getting a leg up and transforming your big ideas into reality.
3. Understand your value add. Take inventory of what you uniquely offer and leverage it. The most beneficial partnerships are ones where your strengths supplement your weaknesses and vice versa. One core differentiator Black developers have is our direct connection with emerging Black communities where deal flow is prominent. In those spaces, we are better positioned to engage with local community leaders and communicate with the public more intimately and effectively.
In my work at Bolster, I’ve been able to connect with others on similar paths who have lent me the strategies and tools I need to move the needle forward. Aspiring Black developers need to remember to create a set of core values that guide their business growth, gather an inventory of strategic partners to achieve their goals and identify their strengths to leverage. Transformation in our industry may not be linear, but keeping these keys to success in mind makes the journey a little more straightforward.