Below it is my answer to a question I received from a member of the forum. His question was: You mention in your post being on the lookout for property almost everyday. Do you have golden rules that you abide by when looking around?
My answer was:
I am sourcing and securing property development opportunities on a daily basis for third parties. Each client has a different market, a different product, and most importantly a different development strategy. I had involvement with a multitude of projects: cosmetic renovation, luxury residential, mixed and medium density development, senior living, commercial and industrial. From experience and to answer your question there is 5 pre-acquisition golden rules attached to how I do things.
Rule 1: The developer! Who is He/She?
• His/her track record, previous experience…
• His/her way of thinking, way of talking and body language
• His/her vision as a person but also as property developer
Rule 2: The Resources
What are the resources available to take the project to completion? The financial aspect is the most crucial followed by the human factor (role, responsibility and accountability).
Rule 3: Accuracy & Creativity
The due diligence process must be done with great accuracy but also with great creativity. Due diligence work is similar to a Crime Scene Investigation. Your duty is to know every bit of information on your targeted property and/or development area. Your creativity will transform the “facts” found in your investigation into a “potential winner”. Pre-DA meetings are a part of my due diligence process.
Rule 4: How strong are you?
It is all about: Development strategy, exit strategy and crisis management. Rule 1 results have a big impact on Rule 4 (especially when you deal with clowns). Each development strategy must have its own Feasibility study. Be creative! The development strategy is the base briefing for your consultants including architects.
Rule 5: Your lawyer
Having the right lawyer is important. You are doing the work but he/she is the one selling your ability to proceed with your project to the vendor’s representative. You and your lawyer must be on the same page all the time. Your lawyer must know your negotiation and development strategies. Save time and energy - brief your lawyer properly.
Want to learn something! Put yourself to the test. Assess your block of land and build your property developer profile. Rule 3 has also its own rules (easements (above ground, on ground and underground), service capacity and availability (sewer, water, power supply...), traffic access and the like.
Regards,
Lionel
My answer was:
I am sourcing and securing property development opportunities on a daily basis for third parties. Each client has a different market, a different product, and most importantly a different development strategy. I had involvement with a multitude of projects: cosmetic renovation, luxury residential, mixed and medium density development, senior living, commercial and industrial. From experience and to answer your question there is 5 pre-acquisition golden rules attached to how I do things.
Rule 1: The developer! Who is He/She?
• His/her track record, previous experience…
• His/her way of thinking, way of talking and body language
• His/her vision as a person but also as property developer
Rule 2: The Resources
What are the resources available to take the project to completion? The financial aspect is the most crucial followed by the human factor (role, responsibility and accountability).
Rule 3: Accuracy & Creativity
The due diligence process must be done with great accuracy but also with great creativity. Due diligence work is similar to a Crime Scene Investigation. Your duty is to know every bit of information on your targeted property and/or development area. Your creativity will transform the “facts” found in your investigation into a “potential winner”. Pre-DA meetings are a part of my due diligence process.
Rule 4: How strong are you?
It is all about: Development strategy, exit strategy and crisis management. Rule 1 results have a big impact on Rule 4 (especially when you deal with clowns). Each development strategy must have its own Feasibility study. Be creative! The development strategy is the base briefing for your consultants including architects.
Rule 5: Your lawyer
Having the right lawyer is important. You are doing the work but he/she is the one selling your ability to proceed with your project to the vendor’s representative. You and your lawyer must be on the same page all the time. Your lawyer must know your negotiation and development strategies. Save time and energy - brief your lawyer properly.
Want to learn something! Put yourself to the test. Assess your block of land and build your property developer profile. Rule 3 has also its own rules (easements (above ground, on ground and underground), service capacity and availability (sewer, water, power supply...), traffic access and the like.
Regards,
Lionel
