Six-figure profits can be the norm in a solid development deal – but with big rewards, come big risks. This special report outlines the steps you need to take to get started as a developer, with expert advice to guide you down the most profitable path, whilst minimising the risks and hazards along the way.
The skilled developer has gained layers of experience, learned many lessons, and overcome many obstacles. But every successful developer has to start somewhere – and there are plenty of strategies you can use to employ this profitable strategy at the beginning of your investing career.
That said, becoming a developer “is a different journey to starting off as a property investor,” says director of Results Mentoring, Brendan Kelly.
“A development, primarily, is a short-term project, so you need to treat your property activity like a business because it’s not in fact investing. You are actually undertaking the business of development, so the mindset is very, very different,” he explains.
“You will always have financial hiccups. There will always be something that goes wrong that you don’t expect, and it is different for every deal.”
Understanding the fundamentals is essential for the first-timer, adds Damien Lee, head of acquisitions at Caifu Property – as is choosing a project that is of a very controlled scale. It’s the best way for a beginner to learn the required skillset, he says.
“I still see a successful developer as [being someone] who is very good at running their team, very good at communicating with their team, and very good at directing the team of what the outcome is that they decide,” Lee shares.
No matter how far a property developer goes, they will always remember their first project – the one that taught them the most, and also opened the door to a new chapter in their property climb.
So how do you get started on that very first deal – and kick start your journey towards making big profits as a property developer?
Read our full and comprehensive guide to developing for massive profit, with strategies to suit beginner, experienced and advanced investors, in the November 2019 edition of Your Investment Property magazine.
On sale at news-agents and Coles, from the 26th September to 31st October 2019
- or download the magazine now.
