HOPE FOR ASPIRING SMALL DEVELOPERS
Many times, during our free strategy sessions current and prospective clients disclose they thoughts and confirm many only dreamt of the possibility of being a small property developer.
Long gone are the days when developing property was suggested to be available only to the rich and lucky. These days anyone with a bit of understanding, some desire to succeed and improve their financial position, coupled with some equity or cash and teaming with experienced advisors with the proven investment experience can become a successful property developer. This is all possible to many people providing they are willing to commit to a structured process and model for making money using an active investing strategy and willing to educate oneself about developing.
Most people classify property developing as building apartment complexes or over the top property projects that were considered way out of reach. In reality, nothing could be further than the truth, developing does not mean this , developing simply means to bring out the capabilities of a potential site, to bring effect previously unseen potential with a site, to cause a site to go through a process of evolution, a redesign of sorts in an effort to restore value to another party that is willing to pay more for the end product than you paid. This outcome is the true meaning of Active Property Investing outcome versus a Passive investing outcome. When you understand the true possibilities of developing, using property as the main vehicle to achieve this become more of a realistic and achievable aspiration.
During client meetings we explore the first steps you need to take on the road to becoming a property developer, importantly to understand what really is required These include:
- What education do I need?
- How much money you’ll need to get started
- How much research you should do
- Where do you buy/feasibility how do you know a good site to a poor site?
- What do you build/renovate, improve?
- Planning your exit strategy
- Building your team of experts
To be a successful property developer you need to learn essential qualities: vision, determination and persistence. It is not an easy road, but developing/ improving property can be very rewarding – not just monetarily, but creatively as well. Seeing your vision come to life starting at the researching a site phase, to site acquisition, to planning, tendering the building/improvement contract, brick by brick, tile by tile, can be incredibly inspiring, and the goal at the end is to achieve a finished product that will deliver the outcomes one planned at the commencement of the project.
Successful property developers assemble a highly talented team of people and skilfully lead them to complete a project that delivers a profitable outcome. Developers need to be proactive and make things happen. They must also be creative, flexible and adaptive to take their project through the development labyrinth, not to mention all the bureaucratic red tape that’s involved with purchasing a site negotiating on or off market properties, designers and planners’ objections, architects in some cases, council consultants and divisional parties that can make or break applications and your outcomes.
We state quite openly in client strategy sessions you also should not overlook the importance of hard work and focus. “As a developer, you need to work hard, have patience, remain focused, and have a scorching resolve to succeed. if you remain focussed on the strategy and long-term outcomes, then you will succeed and enjoy the benefits of engaging with property using Active Property Investing strategies. So do you have what it takes to be a developer? If you wish to begin, ask yourself these questions:
- Is this what I really want to do?
- Do I have the courage to do something different?
- Do I wish to improve my control with property investing outcomes?