Property Development - How to start?
Discussion
Hi, I am currently looking into/trying to get into property development, I'm just after some useful resources for information on how to find Land / Property, Funding the project etc....
I don't want to be working for someone else all my life, I may even sacrifice my car(s) to get started, I am in a position where I haven't got a great deal to loose, if I don't do it now I'll probably just end up as I am........
I have seen a few properties on rightmove, is the funding for a refurb the same as it would be for a new build site?
Any help much appreciated....
I don't want to be working for someone else all my life, I may even sacrifice my car(s) to get started, I am in a position where I haven't got a great deal to loose, if I don't do it now I'll probably just end up as I am........
I have seen a few properties on rightmove, is the funding for a refurb the same as it would be for a new build site?
Any help much appreciated....
Banks willusually lend 70% of the purchase price, drip feed 70% of the refurb costs and in some cases advance at the end 70% of the resale value. However they want 1st charge on the refurb property and additional security ie 2nd charge on your home too. Can they loose?
As long as your not in my area I am happy to let you have our costing sheet, which will show you all the costs involved for refurb. PM me
As long as your not in my area I am happy to let you have our costing sheet, which will show you all the costs involved for refurb. PM me
Repossessed property auctions are worth checking out:
www.repossessedhousesforsale.co.uk/default.htm
Never done it myself, I'm waiting for the bubble to burst (which it will in my view) then I might.
www.repossessedhousesforsale.co.uk/default.htm
Never done it myself, I'm waiting for the bubble to burst (which it will in my view) then I might.
srebbe64 said:
Repossessed property auctions are worth checking out:
www.repossessedhousesforsale.co.uk/default.htm
Never done it myself, I'm waiting for the bubble to burst (which it will in my view) then I might.
www.repossessedhousesforsale.co.uk/default.htm
Never done it myself, I'm waiting for the bubble to burst (which it will in my view) then I might.
Second that and what poorcardealer said. Cant wait for the market to crash to sort the men from the boys so to speak. Ive made far more from a depressed market (long term) than I do from the current climate.
jamesuk28 said:
Sorry guys, speaking purely from a business point of view. Its a hard fact but true.
Afraid James is 100% correct there.........I am sat tight, I think the signs are there, plenty of unsold new property around and quite a few sites which have been bought at (IMO) inflated money, which may come back to market........cant imagine how many buy to let landlords will start trying to bail out if interest rates go up again.......most are much too highly geared for their own good!
I think any 'crash' or depression of the market will be very geographically specific. At the end of the day, if you add real value to a site where people want to live, you will make a return. There will always be aprofit in buying knackered houses in sought after areas - but I agree that the proliferation of thousands of 2 bed flats in undesirable areas is a recipe for bursting bubbles!
With regards to development drop me a pm and i will be happy to help where i can, are you intersted in new build, conversions or re fits etc? In my experience auctions in the currrent climate are not great as you need to be able to build cheap to cover the inflated initial cost of the project, keeping your ears to the ground and hunting in my opinion is the best way to find real opportunities.
One thing I will say is that it is not as easy as it sounds.
Cheers
Joe
One thing I will say is that it is not as easy as it sounds.
Cheers
Joe
JOETHETOE said:
With regards to development drop me a pm and i will be happy to help where i can, are you intersted in new build, conversions or re fits etc? In my experience auctions in the currrent climate are not great as you need to be able to build cheap to cover the inflated initial cost of the project, keeping your ears to the ground and hunting in my opinion is the best way to find real opportunities.
One thing I will say is that it is not as easy as it sounds.
Cheers
Joe
One thing I will say is that it is not as easy as it sounds.
Cheers
Joe
2nd that. The common mis-conception is making money from property is as easy as falling of a log, and most of the time its true - ish. But when a down turn comes a lot of people get wiped out literally. Be very carefull.
srebbe64 said:
I'm waiting for the bubble to burst (which it will in my view) then I might.
and that's why i don't think it will 'burst' in the way people think... there are lots and lots and lots of people all queuing up waiting for it to burst... if it does, they'll all pounce at the same time, readjusting the prices up in no time.
for most investors, it's a win / win situation, whether it continues to rise or if it temporarily 'bursts'
Rob_T said:
srebbe64 said:
I'm waiting for the bubble to burst (which it will in my view) then I might.
and that's why i don't think it will 'burst' in the way people think... there are lots and lots and lots of people all queuing up waiting for it to burst... if it does, they'll all pounce at the same time, readjusting the prices up in no time.
for most investors, it's a win / win situation, whether it continues to rise or if it temporarily 'bursts'
Wrong IMHO. The only people that will be queing up are serious developers. Joe public will think F**k That when they are running a huge risk. The reason margins are being cut is because too many part time developers ( after watching property ladder) have flooded the market. These guys are quite happy to make £10k on a £150 - £200 k investment. And they dont even do there costings properly. If they invest £100k of their own cash they dont for example charge a 4% interest charge, but why not? if they left that 100k in the bank it would earn them 4%.
jamesuk28 said:
Rob_T said:
srebbe64 said:
I'm waiting for the bubble to burst (which it will in my view) then I might.
and that's why i don't think it will 'burst' in the way people think... there are lots and lots and lots of people all queuing up waiting for it to burst... if it does, they'll all pounce at the same time, readjusting the prices up in no time.
for most investors, it's a win / win situation, whether it continues to rise or if it temporarily 'bursts'
Wrong IMHO. The only people that will be queing up are serious developers. Joe public will think F**k That when they are running a huge risk. The reason margins are being cut is because too many part time developers ( after watching property ladder) have flooded the market. These guys are quite happy to make £10k on a £150 - £200 k investment. And they dont even do there costings properly. If they invest £100k of their own cash they dont for example charge a 4% interest charge, but why not? if they left that 100k in the bank it would earn them 4%.
was more thinking of btl market. returns are pretty poor at the moment, and a bursting effect would increase peoples returns on investment. i think too that a lot depends on how highly investors are leveraged at point of 'burst'.
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