Its all in the title. just putting the question out there for developers.
This way us budding developers can learn and know what to learn.cheers
hi Property Passion
once you have finished that unit and got your occupation certificate you can then make up 50 cards with your name as a developer.
and you will have a reasonable idea of the council process.
have funhere to help
As well as all of the personal characteristics (willingness to learn, enthusiasm, passion etc) you need to be really detail oriented. An understanding of numbers is really crucial as your deal will live or die by whether or not it is profitable. You need to know how to do a full feasibility (allowing for as many contingencies as you can think of) and a full knowledge of the process.
Lastly you have to realise that you might look at 200 deals (or even more) before you find a site that pans out – and not sell yourself short just to get one under your belt.
Hope this helps.
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.ok good to know, i guess i will learn a whole lot about the process in building this unit behind my PPOR, im sure im cut out for it! It something ive always wanted to do, just wish the whole council process was a little faster.
been looking at a lot of properties latley and WOW there is a lot to consider when looking at building on them.
easements, zoning, overlays, sewers, stormwater drains, big trees, front setbacks, land size just to name a few.
yep definatley going to take some time to find a suitible property
Originally posted by Property Passion:Its all in the title. just putting the question out there for developers.
This way us budding developers can learn and know what to learn.cheers
I’ve been involved in proeprty development since the mid 80’s. I stated doing renovations, the progressed to developing townhouses.
I had no formal building or development background and now run one of the biggest devlopment companies in Australia – currently project managing over 90 residential medium density property developments.Property development is an extremely creative process and property developers are creators. They take a project from the conception of an idea in somebody’s mind through the design and approval phase, financing, construction, marketing and then eventually the leasing or sale of the project.
Its been said that successful property developers are a bit like movie producers. They assemble a highly talented team of people and skillfully lead them to develop 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 this maze
Developers follow a sequence of steps from when they first conceive a project to the time they complete the physical construction and begin ongoing asset management. While the sequence may vary slightly, usually the development is broken up into the following elements:-
 coming up with the idea
 refining it
 testing its feasibility
 negotiating contracts
 making a formal commitment
 constructing the project
 completing the project and finally
 managing the new project.Obviously a successful developer must be able to handle and thrive under intense pressure and uncertainty.
There are a few key basics you are going to have to if you want to move along the path towards becoming a successful developer. You are going to need to:
• Educate yourself
• Take your time
• Do the researchand have accesss to a lot more money than you think you will need
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 MichaelYardney
very good post.
I think
You must be able to stand on a block of land.
Walk around and have any idea of what is going to be here when finished ,
I haven’t thought of it as art but yes it is a form of art and lasts for many years good or bad.
I have complete control from design to end product.
I have posted that pressure comes with the territory its part of the job, if you can’t stand heat don’t become a chef.
The most important part is your team they must be like a horse or dog slay team, they work for one goal, you as the guy on the back direct them and pull the ropes.
I only go to my sites once a week.
and the brick stops at my desk.
I say the largest problems are cash flow and lender management, the up side is freedom.here to help
testing its feasibility, this is the part i have most problems with, and in my opinion it is the most inportant part.
coming up the the idea through to managing the new project are steps that im quite comfortable with, EXCEPT testing the feaseabilty of the project.
Not having built before its hard to look at an appropriate block and know exactly all the costs you will be faced with in going through the whole process. GR i know you use programs to help you with this sort of thing, where do i find/buy these sort of products? Im sure they will be a huge help to me.When i look at a block i find myself estimating costs. This isnt the way to do things.
For example, how do i know how much a 3 bedroom unit will cost me to build if i havent bought the land so the architect can take a close look at it, then draw up the plans to show the builder ? This is where i start estimating!
any advice in how i can draw up some sort of feaseability report future projects would be great.
thanks for your replies
Kind regardshi Property Passion
You seem to me that you are trying to run before you can walk.
Its a very simple process the only trouble is that you must learn.
You are doing the unit development(on the block) that is you learning project.
You can’t look at costing and major projects.
As I said get it to a group in your state and work from there.
It is fustrating but so is trying to win a over 35 soccer game when you are 45 and the others are 35.
Thats life.
watch karate kid video( I had to for weeks with the kids) and understand it is a learning curve.
If you run before you can walk ((you will)) trip up and that can be very expensive.
After that you will walk very slowly indeed.here to help
All the theory can be learned, but you need money to start. Michael is right.
Developing is NOT FOR BROKE PEOPLE.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents
[email protected]
phone 0412 437 582hi Dr.X
To start sorry if I’m hard but a couple of thruthsI must disagree on your last post.
re Developing is NOT FOR BROKE PEOPLE.
Thats not right broke people may have equity and equity is liquidity and liqudity is possible cash flow.
I don’t want to sound like I’m putting you down put don’t believe everything you read.
A man with no cash is a very wealthy person with 5 million equity and you shouldn’t underestimate the two.
Please email me your next 5 freinds with no money and 5 mil each equity and I will tell you who’s broke.As for michael not to sure who he is but he wasn’t talking to me.
I have read with interest,
(but you need money to start) this is not the case you need (a) money(yes) (if available) (B)equity(maybe) (C)networking and get in a group to leverage to either a or b
I have investors/developers that have developed more per capita than most builders and would not know a trowel from a mixer.Developing is for developers and if Property Passion learns from the unit he’s doing he may well be my competitor( may be thats drawing the bow to long) so be it.
Thats business but please don’t read books and give me your view refering to someone elses views that not only do I think is wrong but half the people I syndicate with will tell you is wrong.
And don’t tell me to tell that to michael ??? who ever because your quoting it.here to help
Hi property Passion,
couldnt agree more with Gross – take on a learning project.I have relevant experience in building/design and decided to put it into practice for myself.
Have done some building on developed land. This is still well within my comfort zone, so I needed some new projects….For my first subdivision I decided to use the sevices of a surveyor who coordinates the whole process – sure it costs for his expertise but I see it as a form of mentoring. (The surveyors locate and coordinate all the headworks requirements, planning authority, council etc with the relevant authorities – so next time you know how the process works).
The next project I am taking on more of it myself – knowing how the process works, and how it is done by a professional.
These guys are pushing subdivisions through council/state planning every day and they learn all the pitfalls.Also, I’ve found that whilst you are employing them to do your survey subdivision you can ask as many questions as you like and get PRACTICAL answers.
To me it is money well spent, and a cheap and fast education as well.Having said that you should only use someone that has been recommended to you.
There are always ways to achieve the result without expertise, but I also see time as money. More finished projects is more cashflow to me – and earlier retirement.
good luck cheers Julie [smartass]
I agree walk before you run.
Start by subdividing 1 into 2 and learn the process and develop a relationship with Council, Engineers, Surveyors etc.
We are finding the interest a real squeeze on land we’re subdividing (1 into 7). The DA still not through after 10 months.Originally posted by AmandaBS:I agree walk before you run.
Start by subdividing 1 into 2 and learn the process and develop a relationship with Council, Engineers, Surveyors etc.
We are finding the interest a real squeeze on land we’re subdividing (1 into 7). The DA still not through after 10 months.That’s a great point Amanda- start small. You will learn 80% of what you need to know about developing in your first 2 or 3 projects.
Make sure you can survive these so you can get to your 4th project
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 Gross, I think there may have been a mix up in the posts. Michael referred to ‘have access to a lot more money than you think you will need’ and DrX may have read this as developing is not for broke people but I’m not sure.
I agree with your point about having equity but if you only have equity then how do you go about servicing loans unless you use your equity as security for those who can service the loans. At some point money needs to change hands and I’m not sure if that can be done with equity alone.
If you do search on Metropole Properties you will get a good idea of who Michael is and how valuable his knowledge is to investors like property passion who are starting out in developing.
C2
Rich in happiness and money is better than rich in money with no happiness.
There have been a lot of interesting points raised by some experienced people.
The only thing I have to add to this is that you need to do your feasibility carefully when looking at sites. This also includes producing the right type of accommodation to suit the demographic profile of the area.
You do not want to produce more of the same as you may come across stiff competetion and this will lead to lower prices. This is great for buyers but disaster for developers.
Timing can also be a factor but, careful research will reveal opportunities.
Sailesh Channan
http://www.developersedge.com.au
“Helping you select,develop and profit from property”
We are looking to develop & do agree with all (most) of the previous posts about putting in the effort on the feasability front. We also expect that we would learn heaps by just doing one, and that education would be enormous for us & each one would get easier after that.
But how do we work out if a project can run to plan so as to not get blown out of the water by making a huge mistake on the first one. Where do we get the guidlines/ check list as to all the things we must do before making the purchase, to dot the i’s & cross the T’s???????
I realise it is FEAR, but if we really screw it up it will take years to just get back to where we are today (not to mention the scars we would get from this). I am a person who is uncomfortable without having full knowledge/control over whatever i am doing.
Can someone help please???hi troynbec
Sorry but you are comming into my world.
don’t be so scared we all stuff up it just we have they system to work around problems.
pm me and lets chathere to help
My 2 cents worth is Good luck and good timing.
I have been developing for a long time as well and have seen the best of them get wiped out from bad luck and bad timing, more so than their own mistakes.
A mate of mine lost 35 million because the market changed fro no fault of his own.
I went through 19.33% interest rates (that builds character – not) could you?
How about a Gulf war in the early 90’s and the property market just stopped
What about the Paul Keeting recession we had to have, who planned for that in their budget with the finance company funding your development project.
How about a pilot strike and sitting in Brisbane airport with the number 2 of Mitsubishi Corp Japan on a 15 million deal in North QLD (welcome to Australia) thanks a lot and we lost the deal – my fault – not.
So “developing made easy” get real guys/gals the truth is there is no easy – just good luck and good timing and you hope and pray some out side influence doesn’t stuff you up. Ask Keith Williams how he lost Hamilton Island to Citibank, he had a $400,000,000.00 portfolio.
Prophets – reno experts – gurus – are all great while the market is reasonabally stable but tip the table and watch out. What would you do if the interest rates changed to 12% in the next 6 months – won’t happen? what if it did?
Yes i am still developing – renovating – and anything else that looks like making a profit – BUT my experience is that it can change without warning, so good luck to you all and welcome to my world ahhhhhhhhhhhhhhhhhhhhhhhhhhh!!!
resiwealth … Phil (still positive and making money – i’m selling my SL500 merc 74k/m midnight blue if u r interested)[weird]
We have started the process of putting 2 units on a site we have-and have the common problem of not much cash. I asked around some of the big groups (the kind who have display homes) and National Builders Group does multi unit devs-the appealing thing is that a deposit of $1000 gets the planning process underway with a town planner and it is refundable if the project is not a goer-if we, as buyer decide not to proceed, we just have to pay for what has been done eg soil tests. This compared to $3000 for a local planner to do feasibility study. I was wondering if anyone else has used a big company (National Builders organises the work for the and would like to hear stories.
and have accesss to a lot more money than you think you will need
very valid comment.
Life’s little surprises are always around the corner and these ******** have a habit of coming and biting you when you have spent your last cent.
For my current Project [upmarket T/House in Melb Inner City Suburb]I have paid off for the Land (with Permit). Fixed price building Contract has been signed. Construction Loan should get approved in a weeks time.
Guess what? I am still going to the Market to borrow an additional 50k (@~20%interest) for the final few months of Construction as a contingency.
Crazy? Not really; I’ll Probably pay 5k as interest over 6 months[treat it as part of Project Cost] and hopefully will not touch the additional Funds.
But it provides me with some protection against those nasty little surprises and enables me to finish the project successfully.
Trust me! I’ve been on the other side when you are forced to make some poor decisions at the end of the Project just because you are short by a few Ks; NOT FUNNY.
Kattan
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