Can anyone recommend a great book on Commercial Property particularly development of such.
I would love to hear how others got started and made a success of commercial development, any issues encountered, tips and hints and finance of the project.
I am at the planning stage of developing industrial units, the more I am researching the more excited I am getting.
Look forward to your replies.Originally posted by figure girl:Can anyone recommend a great book on Commercial Property particularly development of such.
I would love to hear how others got started and made a success of commercial development, any issues encountered, tips and hints and finance of the project.
I am at the planning stage of developing industrial units, the more I am researching the more excited I am getting.
Look forward to your replies.I have developed commercial real estate. I began doing so in the 80’s and have developed, warehouses/industrial; shops, 2 x office buildings and even one multi acre industrial estate.
I was very succesful with these but I must warn you its not a place to start.
Have a look at the post on the risks of property development them multiply these by 10 for commercial. You are playing with the “big boys here.”
Start with something smaller and residential. You will learn 80% of your lessons in the first 2 or 3 projects. Then move up.
I’m not trying to be rude or smart, but if you are looking for a book to teach you how to do it, you are in the wrong league.
It’s a great way to go broke really quickly. I didn’t but I have seen so many people both smarter than me an not as smart as me go broke in commercial development
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auMicheal,
Thanks for your response,
As your website avocates:“Now YOU can become a property developer and make handsome profits. You don’t have to be a millionaire or a hands-on developer to do it.
The smart money is at the wholesale end of the property market. Why buy retail when there is little margin for error or profit?
Metropole Projects, Melbourne’s premier property development consultancy, will help you acquire investment properties that safely outperform the market by up to 47%; because we show you how to buy your properties “wholesale” like the professionals do. We specialise in helping investors create their investment developments.
The reason more people don’t become property developers is because they believe they have neither the know-how, time or money.
That’s where Metropole can help you.
Metropole organises everything, regardless of whether you want one or multiple town houses. Metropole takes the worry out of the investment by assisting you with all the development expertise needed…… from concept to completion.
One of the smartest ways to invest your money these days is in property.
Why buy retail?
With risk of appearing exceptionally niave or a complete fool. I have researched the risks of my proposed development. That is why I am asking about any recommendations of a great book. Not only am I an avid reader I didn’t want to miss anything that I hadn’t already thought of how to cover myself should a “what if” arise.
The venture I am considering is very smalll which I am sure that the “big boys” would not be interested in.
I have found a number of blocks for $40,000 in an area that is currently experiencing residential growth in the form of new subdivisions in a major rural industrial town. A bypass is soon to be constructed.
As I recognise that I am not experienced in Commercial Development I would have this small development project managed to minimise risk. I would only be building 2 light industrial sheds that allowing a 20% margin for cost blowout would still be cash flow positive even if I had to consider selling one unit (perhaps to borrow for the next development) would still be a positive cash flow producing investment.
Due to the reduced outgoings(ongoing expenses) that residential property accrues one might suggest that certain aspects of commercial property are less of a risk than residential.
I will be the first to admit that I do not have all the “knowhow” but like all forms of investment I admit that their is a risk, but is getting in a car.
I would prefere to follow a risk that I am passionate in than lose interest in one that I am not.
Thank you for your warning which I will admit has dampened my enthusiasm (for a minute) but will continue to investigate none the less.
The other option I was considering was a lease industrial unit for $175K with a weekly rental of $320 per week. But as your website says “why buy retail?”Originally posted by figure girl:
Thank you for your warning which I will admit has dampened my enthusiasm (for a minute) but will continue to investigate none the less.Figure girl
My post was meant to dampen your enthusiasm and make you look at the project again, but I do not want to dampen your spirit.
There is no doubt that property development is potentially very lucrative. Just do your due dilligence and then do it once more, because there will be things you left out.
As I said before, you will learn 80% of your lessons on the first 2 or 3 projects, so tread gently.
To answer your initial question, I know of no book that describes the commercial development process.
I have published a 150 page Property Developer’s Manual with all our internal worksheets and checklsts, but I have chosen not to release it commercially. It is only available to attendees of our annual property development workshop
http://www.metropoleprojects.com.au/html/s02_article/article_view.asp?art_id=107
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Michael,
Sorry, this is off the subject, but I have recently received information on your company and I am a little disappointed that you do not have any projects/developments in Perth.
Will this be on the cards down the track?
Regards, Marisa
Originally posted by Marisa:Hi Michael,
Sorry, this is off the subject, but I have recently received information on your company and I am a little disappointed that you do not have any projects/developments in Perth.Will this be on the cards down the track?
Regards, Marisa
Perth is a great place but it is unlikley we will opertae there. We help investors from all over Australia but only buy or develop for them in Melbourne. It’s the market we know well. It has taken almost 30 years to develop that knowledge and network.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Michael,
Congratulations on your success.
I am also reluctant to step side of Perth.Enjoyed reading your comments “Is Now the Time to Develop” in API.
Cheers, Marisa
Originally posted by Marisa:Hi Michael,
Congratulations on your success.
I am also reluctant to step side of Perth.Enjoyed reading your comments “Is Now the Time to Develop” in API.
Cheers, MarisaMarisa
Thanks for that. I believe the article brought out a number of interesting points. One being how Perth is at a different stage of the property cycle to MElbourne and Sydney
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Michael,
We have booked for your June workshop, and are very excited about being there!!
However, our question is:
We currently live just outside Melbourne, but we will be shifting to QLD (Hervey Bay area) in December. Will what we learn be able to be applied in QLD, or do rules & regulations relating to development differ a lot from state to state. I’m sure your answer may help others in similar situation also.
Thanks,
Will & Del [biggrin][biggrin]
Originally posted by wilandel:Hi Michael,
We have booked for your June workshop, and are very excited about being there!!
However, our question is:
We currently live just outside Melbourne, but we will be shifting to QLD (Hervey Bay area) in December. Will what we learn be able to be applied in QLD, or do rules & regulations relating to development differ a lot from state to state. I’m sure your answer may help others in similar situation also.
Thanks,
Will & Del [biggrin][biggrin]
Will & Del
Thanks for that[biggrin]
What you will be taught will be very relevant to Queensland and in fact all of Australia. Last year about 20% of the attendees came from Queensland.
There will be 3 presenters from Queensland. Rob Balanda a Surferes PAradise based solicitor as well as Paul Eslick and Geoff Doidge the Reno Kings.
We already have a number of other bookings from QLD and some from NSW and one attendee from last year who lives in Singapore is coming a second time. And the great thing is that interstate attendees get their airfares and accomodation paid by us.
It will be a great weekend
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auThanks for the reply Michael!
Will & Del [biggrin]
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