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When looking at a development site, the agent is the last person you should listen to for such things.

The most difficult conversation I have had with a JV partner was advising an unexpected $200k blowout in build costs. This was based on the estimate that came back from the builder I had used in my previous project. I later managed to find another builder that could come in at the price point I...

fyi, I have had all 4 of these occur on a project (wasn't my first).

To me, this would be the starting point. Get these 2 sorted, then do a small development like those in the videos. I think you will find it really hard to find someone willing to invest $500k with someone who hasn't done a similar project before. For my JVs I could demonstrate a similar...

A cost blowout Unexpected expense Sales values drop during the project Timeframes blowout You can estimate as well as possible, but will find that things will often cost more than you expect and take longer than anticipated, especially for a first development. Thats what you have a...

To me that is a bit of a concern. I have developed a questionnaire which allows people to assess if developing is likely to be the right wealth creation strategy for them. One of the questions that I have included in the self-assessment is the ability to handle a moderate level of risk. It is an...

Its a tough one. How much cash do you have to invest and what is your serviceability like? I have created a series of videos outlining the kinds of developments that I would suggest people start with (and how to use RP Data to find them). They are relatively low risk and much easier to finance...

I am currently managing 3 JV developments and have experienced many of the high and low points through each of them. My general advice for people is that if you haven't done your own development first, you shouldn't be managing a JV with someone else's money.

You have allowed interest, but seem to have also required the investor to put in the full cost amount, which would imply no interest is payable.... or are you intending to pay the interest to the investor plus their 50% share of the profits?