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How anyone can think things will end well when you see charts like this is beyond me. Cognitive dissonance doesn't even begin to describe that take on things.
Look at Gold and energy – wow!!
(click for larger graphic)
You need to get your head around marketing and promotion 101. Facebook is simply a location with a sea of billboards. Imagine driving down a road and every 20m is a bill board. This goes on for miles. Somewhere in there is your one. How successful do you think that strategy will be?
When you go to FB your simply duplicating the problem. Now you have to drive traffic to your FB page to drive traffic to your product page. So now you're effectively filtering your potential customers through another level. End result is you loose a percentage of possible visits.
In marketing there are primarily 2 approaches – shot gun and rifle. There are variations on either approach as well.
FB is the shotgun approach and Google ads is the rifle approach. You need to allocate a budget and then develop a marketing campaign/strategy that uses both approaches. Shotgun gets about 25% of the budget (if any) and rifle gets the rest.
When you're selling products spend most of your time and money on SOE – search engine optimisation. Everyone looking for a something to buy uses a search engine. They rarely stumble across it. Most people see what the want in the offline world then go to the net to research it. That should give you another clue about how to market and promote.
I can't be much more specific than that without knowing what your business and products are.
kylermrice wrote:Well properties aren't as cheap as they where in 07-08. Used to buy brand new in Florida for 35,000 back in the day, now your lucky if you can get something close to that for 100,000.
That's not an economic fundamental as far as I'm aware. Big Johns statement was "Economic fundamental is (are in) place that indicate the US economic recovery has commenced"
I'd luv to know what these fundamentals are.
kylermrice wrote:We aren't going broke…..The US prints money to pay the interest on the money it printed into existence since 2008.
Dude you're broke. You just haven't accepted it yet.
The reference is to property investors specifically not your mom and pop home owner.
Look out I'm coming through….
I imagine the tenancy agreement will be rather complicated.
I wouldn't slit me wrists just yet but it is getting tougher out there although I see job listings are up which is a good sign.
minds-eye wrote:This is scary.. All of the evidence points to certain doom!I've just got pre-approval for 600K to build my first property and I'm starting to have some major doubts!
Details??
Things still happen in contracting economies and during serious corrections. You just have to be aware of what your up against and the risks.
There's an old saying and it kind of relates to newbies who are sometimes overawed by the shear amount of knowledge they need to acquire to become functional at investing.
How do you eat an elephant? One mouthful at a time.
Start small and simple. Your first reno should be a simple facelift. Paint, clean, tidy yard, fittings and fixtures, maybe a door or two… basically simple stuff. You're first investment should be simple and straightforward enough to walk you through the process.
This is where you begin to establish relationships with brokers, accountant, mentor(optional) and legal. These relationships will the form the hub of your investment team and picking the right people ensures your team is already seeded with substantial intellectual capital.
Of all the investments you ever make in life the most important will be in these people.
From there you build slowly. And who knows. In 5 years you might be another young Engelo Rumora.
Nigel Kibel wrote:We provide as much evidence as the great information you put out about the end of the United States.What information?
alfrescodining wrote:Well I'm going to budget $20,000 for the retaining walls, because I have no idea how much they might cost if they're masonry.Get a meter rate (X height) from the suppliers. Ask about returns. Budget on 40 meters incase of curves shaping etc. You can get general labourers for $20/hr. Don't use labour hire companies Need 3 probably. A dude with a bobcat to do site prep a few cube of gravel to backfill and bob's your uncle. I'd say a good weeks work.
My question is what happens to the value of the land with the original house on it? Would it decrease because
there is less land? And as a rough guide, how much would it decrease?
As rule yes and by the value of the new unimproved block. However once a development is completed the original property can regain some or all of it's value if the development involves an upgrade of the original and in a complimentary way. Get it wrong and losses to original properties value may be magnified.
Follow Derek's advice on this. He knows this stuff backwards. I'm and amateur when it comes to property development. I've been out of that game a long time.
Part of early stage business development is acquiring the components you need (investors, credibility, experience, knowledge, strategic relationships, network relationships etc) and assembling them into a cohesive entity.
You really need to sit down and figure out what you need, when you need it, how much you need at various stages etc and plan in advance how to meet these demands. You're currently operating back to front, finding the opportunities then try to marshal the resources to take advantage.
In business you position to take advantage on a prior basis. You don't reposition or restructure (after discovering) to capture an opportunity as a rule.
I get the feeling you're try to rush it a bit. Building a stable of investors takes time as you build credibility. My thinking is to be a little more patient during this growth phase.
I suggest you sit down and look at this as purely a business and build a business plan around what you're doing. You don't seem to have a clear business development path mapped out yet hence your current situation.
The person becomes a border in reality. It can be dodgy as its easy for them to skip out. The other option is to rent to them and sub rent back a room (at whatever price if any) as when its needed The rental deal would be difficult to describe in a complying(state rental law) contract I would imagine.
You could also become joint tenants in your own place?? Thinking out loud here.
There are syndicates that do do OK over time but you really need to have form good solid relationships for these things to work. One of the complications these types of groups run into is functioning by committee. Getting decisions made can be a nightmare at times. Hell look at government for an example.
TheFinanceShop wrote:My vote for tip of the year. I actually learnt this the 'hard' way with one of my developments.Regards
Shahin
Only way to avoid that is to over engineer it structurally which is costly.
Another way to avoid heavy footings is reduce the height of walls (hence wall load on footings) by terracing. That can leave you with further landscaping opportunities such as plantings.
The more experienced developers here might be able to confirm if this is feasible or not but you say this property is beside a Uni. Then why don't you design 1 – 2 properties with a dorm design in mind. IE all bedroom have an ensuite and mini kitchenette bar type option (small bench with bar fridge underneath and capacity to plug in small cooking equipment like toasters, pie makers etc). The remainder of the house has a common area (lounge) kitchen and laundry.
My guess is this would make a fairly attractive and affordable accommodation option with a higher rental return outcome than a multi dwelling setup your contemplating.
It seems to me this project has to be driven primarily by rental return and little else. I would looking at how many semi contained bedrooms I could squeeze in rather the number of individual dwellings.
