Property Development
Discussion
I'm currently a student making plans for the future. I really think i could make money on developing properties but how do i get started? Getting the finance will not be easy as i don't have any assets, obviously there are my parents but i doubt they will be happy securing their house against something for me. So, any other helpful suggestions would be appreciated
Thanks
Thanks
YoungTom said:
I really think i could make money on developing properties but how do i get started?
Unless you fancy boiling beetroot at 6.00am, the normal course is to write a business plan, then take it to a bank who will say yes or no.But to make money from nothing requires the entrpreneurial spirit (beetroot), not the PAYE spirit
You need a combination of market knowledge, building knowledge, and most of all lots and lots of money.
Otherwise you are a speculator with a paint pot. Even for that you need money.
What sort of degree are you doing? I'm a commercial surveyor and the successful commercial developers I deal with have got into developing either by
1. getting a property degree, joining a development company and working their way up the ladder until they become a director, or
2. making money in other businesses, selling up and investing a pot of cash.
Otherwise you are a speculator with a paint pot. Even for that you need money.
What sort of degree are you doing? I'm a commercial surveyor and the successful commercial developers I deal with have got into developing either by
1. getting a property degree, joining a development company and working their way up the ladder until they become a director, or
2. making money in other businesses, selling up and investing a pot of cash.
Eric Mc said:
Why do you think YOU can make money when hardly anyone else is at the moment?
Underline the word "hardly", which means people are and i know people who are. Just because i'm young does not mean i don't know anything about business or property. I asked for advice not sterotypical views
YoungTom said:
Eric Mc said:
Why do you think YOU can make money when hardly anyone else is at the moment?
Underline the word "hardly", which means people are and i know people who are. Just because i'm young does not mean i don't know anything about business or property. I asked for advice not sterotypical views
HTH
YoungTom said:
Eric Mc said:
Why do you think YOU can make money when hardly anyone else is at the moment?
Underline the word "hardly", which means people are and i know people who are. Just because i'm young does not mean i don't know anything about business or property. I asked for advice not sterotypical views
Have you already tried www.youngdevelopmentfund.gov.uk? It's a government 'young apprentice' type scheme where you get advice and guidance from people like Sarah Beeney, Phil Spencer and Kirsty Allsop. They loan you £100,000 which MUST be paid back at the end of 5 years. After your apprenticeship is finished, you have to provide guidance to other apprentices for at least 5 years (although you do get paid consultancy fees for this).
YoungTom said:
Eric Mc said:
Why do you think YOU can make money when hardly anyone else is at the moment?
Underline the word "hardly", which means people are and i know people who are. Just because i'm young does not mean i don't know anything about business or property. I asked for advice not sterotypical views
I have to ask another question though, if you already KNOW what to do, why on earth are bothering to waste time asking others.
Just get on and do it.
And you will also note that I mentioned absolutely nothing about your age. I couldn't care less whether you are a young whippersnapper or a grizzled old business veteran.
YoungTom said:
people are and i know people who are. Just because i'm young does not mean i don't know anything about business or property.
In which case why have come on here asking when it sounds like you know the answer?Why don't you suggest to experienced people on here how you would intend to do it and they can give advice and constructive criticism.
Are you looking at resi or commercial? Buy to let? Student houses? Terraces? Barn conversions? Redeveloping upper floors?
I'm not wishing to have a dig, rather that there are people happy to give advice on here and this advice appears to be thrown back in their face.
We supply stairs to a lot of property developers and I assure you few are making money.
You can still make money, and there are some doing it.
But it seems to be the case that you need to have the capital to buy somewhere at auction in the right area, at the right price and have the know how and experience to get it right when developing.
As such I would probably stay clear at the moment.
But good luck.
You can still make money, and there are some doing it.
But it seems to be the case that you need to have the capital to buy somewhere at auction in the right area, at the right price and have the know how and experience to get it right when developing.
As such I would probably stay clear at the moment.
But good luck.
OP: I've figured out a way to make money from property development. Any ideas how I can get funding.
PH: TELL US YOUR SECRETS, GYPSY!
OP: Err, I'm just asking for finance advice.
PH: WE WANT YOU KNOW YOUR SECRETS!
Why should he tell you guys how he's going to make money? If you found an exploitable niche market, would you go around telling everyone about it?
PH: TELL US YOUR SECRETS, GYPSY!
OP: Err, I'm just asking for finance advice.
PH: WE WANT YOU KNOW YOUR SECRETS!
Why should he tell you guys how he's going to make money? If you found an exploitable niche market, would you go around telling everyone about it?
To the OP I'd agree with most of the sentiments rasied.
I've done a bit, was a time when you could drop the most almighty b
k and still come up smelling of roses due to the rising market. Those days however are long gone.
I always tried to ignore the fact that the market was rising as any 'profit' made that way is simply eaten up by the increase in cost of the next development. You need to create profit by adding value.
You need the ability to look at a property and immediately know what is wrong with it. Why doesn't the layout work, what are the costs and works involved to rectify it. You need to be able to picture your buyer before you've even started. Single person? Young couple with kids etc and build their dream home but still leave enough flexibility that its attractive to other groups.
You need knowledge of plumbing, electrics, plastering, joinery, brickwork, roofing, planning, building regulations. If you can't do any of these things yourself you need good strong contacts of people who can.
More importantly you will need cash and lots of it. To buy cheaply and quickly you need to buy cash, not mortgages.
Budget to the last nail or screw, don't forget to include in your budget costs for purchase, costs for sale, cost of finance. You need contingencies for when things go wrong because they always will. Can you stomach an increase in interest rates? What if the place takes six months longer to sell than you thought?
Towards the end of the boom I attended auctions for properties I had viewed and costed thoroughly. I watched would be 'developers' bid higher and higher thinking I've seen it on TV, you just can't not make money. There was simply no way these guys could even break even, let alone turn a profit.
I finished my last development a year and a half ago and it's now rented out. I'm not currently actively seeking anything else due to the uncertainty of the market.
I'm sure some people are still out there doing it and making money at it, they perhaps just have better access to finance, bigger balls and better luck.
In short, by all means consider it, but do extensive research. I know she's all for TV but read Beany's books, she really is very good at what she does.
I now spend my time doing work for other people, fitting bathrooms, plastering, tiling that kind of thing. It keeps me busy and pays the bills. I'll get back into it, but not yet.
My last development should have gone really well but due to the market I have about broken even. I consider myself lucky at that.
I've done a bit, was a time when you could drop the most almighty b
k and still come up smelling of roses due to the rising market. Those days however are long gone.I always tried to ignore the fact that the market was rising as any 'profit' made that way is simply eaten up by the increase in cost of the next development. You need to create profit by adding value.
You need the ability to look at a property and immediately know what is wrong with it. Why doesn't the layout work, what are the costs and works involved to rectify it. You need to be able to picture your buyer before you've even started. Single person? Young couple with kids etc and build their dream home but still leave enough flexibility that its attractive to other groups.
You need knowledge of plumbing, electrics, plastering, joinery, brickwork, roofing, planning, building regulations. If you can't do any of these things yourself you need good strong contacts of people who can.
More importantly you will need cash and lots of it. To buy cheaply and quickly you need to buy cash, not mortgages.
Budget to the last nail or screw, don't forget to include in your budget costs for purchase, costs for sale, cost of finance. You need contingencies for when things go wrong because they always will. Can you stomach an increase in interest rates? What if the place takes six months longer to sell than you thought?
Towards the end of the boom I attended auctions for properties I had viewed and costed thoroughly. I watched would be 'developers' bid higher and higher thinking I've seen it on TV, you just can't not make money. There was simply no way these guys could even break even, let alone turn a profit.
I finished my last development a year and a half ago and it's now rented out. I'm not currently actively seeking anything else due to the uncertainty of the market.
I'm sure some people are still out there doing it and making money at it, they perhaps just have better access to finance, bigger balls and better luck.
In short, by all means consider it, but do extensive research. I know she's all for TV but read Beany's books, she really is very good at what she does.
I now spend my time doing work for other people, fitting bathrooms, plastering, tiling that kind of thing. It keeps me busy and pays the bills. I'll get back into it, but not yet.
My last development should have gone really well but due to the market I have about broken even. I consider myself lucky at that.
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