hey guys, im new to this forum and have no idea which topic i should be posting this in so sorry if its a bit inconvenient. Im currently living in Warwick qld but i am leaving on the 13th of may to go to the navy. my dream is to be a property developer. ive watched dvds with carly crutchfield and mark rolton but ive also heard its all a load of quakery so i wouldnt have a clue where to start. I have huge financial goals for myself that many people would call impossible but i believe property development can help me achieve this. Im obviously going to need a mentor but also have no idea what to do to achieve that. i have an open mind and have some knowledge about renos and smaller stuff like that however im not sure if that will help me achieve my goals in the time frame im looking at. as you can see i need alot more knowledge but want to get into it asap. any thoughts would be greatly appreciated!!!
aged 17 and keen to start
- Thread starter speeedy
- Start date
Read a lot on the topic, and meet people involved.
I use to research local companies, then go during my work lunch break and knock on the directors door and ask if they could spare 5 mins of their time for a keen developer to be.
Usually turned into a chat over a meal and I learnt more from one chat with a self made developer than from all the books I had read. You need the books to start though so you know what questions to ask.
A couple even took me out and showed me what to look for when selecting land. I have never met anyone who wasnt keen to help. I find successful people love sharing their stories and life lessons (when they arent super busy, sometimes you have to pick a better time).
I use to research local companies, then go during my work lunch break and knock on the directors door and ask if they could spare 5 mins of their time for a keen developer to be.
Usually turned into a chat over a meal and I learnt more from one chat with a self made developer than from all the books I had read. You need the books to start though so you know what questions to ask.
A couple even took me out and showed me what to look for when selecting land. I have never met anyone who wasnt keen to help. I find successful people love sharing their stories and life lessons (when they arent super busy, sometimes you have to pick a better time).
Just sticking my head in to say, just by having a goal to shoot for at 17 years old, you're off to a brilliant, early start.
My only other input is basically repeating what's been said. Devour and learn everything you can. Forums, magazines, books, videos, talk to people etc.
My only other input is basically repeating what's been said. Devour and learn everything you can. Forums, magazines, books, videos, talk to people etc.
hey guys thanks for the input. at the moment i know residential would be the easiest so i want to start with residential apartments, townhouses, land subdivisions and then building townhouses on them. ive learnt a fair bit about options but i know theres got to be a bit more involved than what its cracked out to be, this goes the same for vendor finance. i know a very successfull man whos 30 years old and he has shown me a really speedy and productive way to build up a decent sized property portfolio, paying your houses off within 1-2 years. which i think would be a great way to start. so i can draw down on some equity to start a development which he has done. However i think this could take more time. my father is a carpenter that works for himself so he can help me do renos cheap and help me not overcapitalise when i first start off. its a huge industry and i know its not going to be easy. but is very achievable if i set my mind at the goal. with the navy i get alot of benefits too so it wont make a huge difference but its a solid career which the bank will like the looks of especially seeing as im only 17 turning 18. ive also heard about steve mcknights positive cashflow property stratergy. i havent read the books yet but its very appealing. if that can help me achieve my goals. my minds open to anything. i heard about finding profitable sites and taking them to a developer and in return you recieve a site finders fee. but i dont think they all do that am i correct? wouldnt more people be doing it? i thought it was a little bit of a lure to get people to sign up to one of carlys courses
This is good advice. The best thing you could do now is start saving and then probably look for a good quality IP with some potential to renovate using your time and maybe some help from Dad with his carpentry skills. THis will up the value and earn you a better rent return. Buld up some equity and repeat until you have enough equity/cash to do a development. Small steps is the way to start. I dont think many low income (i assume) young people jump straight into multi unit development, mainly because they dont have the cash resources.
yeah thats what i was thinking, ill be on roughly 45k untill this time next year and it bumps up to about 65k so i think saving isnt too much of a problem. by that time i aim to have a few houses under my belt and have some equity building up. ill start with small developments. but eventually, high rise residentials is where i want to be at. i know i cant just go do that at the start and ive got to spend some time at each stepping stone along the way soaking up as much info as possible. ive heard banks aren't lending 100% of the land price and constuction costs anymore am i correct? ive heard you need to give the bank some pre development sales first
It may time to come back down to earth. I dont want to be rude but i think you may be a bit excited after reading all those investment books.
For most people it is not realistic to purchase multiple rental properties in the first year starting from scratch on $45k a year.
High rise developments are a whole new game all together and generally left to professional development companies (usually listed or very wealthy private companys) as they are very capital intensive. High rise developments required skills that are not easily transferrable from your rental property ownership and development. If you want to go down this path i suggest you try and get into uni and do some formal training in engineering, property or commerce and then look to work for a developer. After this you just need to find a bank who will lend you $20m plus to get started.
For the rest of us we will just plug away slowly acquiring IP's as equity builds up and buying the odd development site when possible.
Dont get caught up in thinking that you can achieve it all in a few years. At 17 time is your friend and a 10 year realistic plan will put you in a good position when you are only 27. At some point in time along your journey you will have the cashflow and equity to get into some bigger development projects.
For most people it is not realistic to purchase multiple rental properties in the first year starting from scratch on $45k a year.
High rise developments are a whole new game all together and generally left to professional development companies (usually listed or very wealthy private companys) as they are very capital intensive. High rise developments required skills that are not easily transferrable from your rental property ownership and development. If you want to go down this path i suggest you try and get into uni and do some formal training in engineering, property or commerce and then look to work for a developer. After this you just need to find a bank who will lend you $20m plus to get started.
For the rest of us we will just plug away slowly acquiring IP's as equity builds up and buying the odd development site when possible.
Dont get caught up in thinking that you can achieve it all in a few years. At 17 time is your friend and a 10 year realistic plan will put you in a good position when you are only 27. At some point in time along your journey you will have the cashflow and equity to get into some bigger development projects.
Look at it this way.....
You are going to have to start with a detailed progressive plan. Start with buying property with development potential that will be a good mid term rental so you can hold it. being a retain and build, duplex or triplex site etc.
once you have saved up some capital or equity has increased then use it to subdivide or develop.. Then use the equity for the next project. you will get better and can slowly move up the chain.
I think high rise is a little ambitious at this stage unless you have multiple partners. But why not aim for small multidwellings 4-10 apartments on a block. can easily be achieved if its planned right.
Just make sure as you go along you know if you are going to keep or sell the developments and plan accordingly.
And also dont try get caught up in all the different strategies above. Just pick one or two that are going to help you achieve your goals and stick to mastering them so that they work well rather than trying know a bit of each.
hope this helps.
cheers
You are going to have to start with a detailed progressive plan. Start with buying property with development potential that will be a good mid term rental so you can hold it. being a retain and build, duplex or triplex site etc.
once you have saved up some capital or equity has increased then use it to subdivide or develop.. Then use the equity for the next project. you will get better and can slowly move up the chain.
I think high rise is a little ambitious at this stage unless you have multiple partners. But why not aim for small multidwellings 4-10 apartments on a block. can easily be achieved if its planned right.
Just make sure as you go along you know if you are going to keep or sell the developments and plan accordingly.
And also dont try get caught up in all the different strategies above. Just pick one or two that are going to help you achieve your goals and stick to mastering them so that they work well rather than trying know a bit of each.
hope this helps.
cheers
I was in a similar situation to you Speedy,
I joined the RAAF when I was 18 and had very similar goals. My advice to you would be to keep reading, visit lots of open houses, real estate agents etc, get a feel for the kind of people you will be dealing with.
With your time in the navy - Live on Base and eat at the Mess. I did that for about 4 years all up, and while my mates were renting 1-2 bedroom places and just scraping by, I was saving probably $30,000 of my $50,000 salary, while basically living and eating for free. Also it goes without saying, dont go out and get car loans for new holden's like your mates will.
I left the RAAF just after my 25th birthday (am now 27) and had purchased 3 houses in the meantime.
I joined the RAAF when I was 18 and had very similar goals. My advice to you would be to keep reading, visit lots of open houses, real estate agents etc, get a feel for the kind of people you will be dealing with.
With your time in the navy - Live on Base and eat at the Mess. I did that for about 4 years all up, and while my mates were renting 1-2 bedroom places and just scraping by, I was saving probably $30,000 of my $50,000 salary, while basically living and eating for free. Also it goes without saying, dont go out and get car loans for new holden's like your mates will.
I left the RAAF just after my 25th birthday (am now 27) and had purchased 3 houses in the meantime.
Not sure what the restrictions are now, but back in my day as an army wife, if you owned a property within 30mins of the base (or there abouts) you would be expected to live in it, or pay higher rental rates with the defence. So I'd be looking into any restrictions like this.
Check out your first home buyers options.
Look for larger developement potential blocks with a ready rental income now. If its worth renovating, do that too. (Depends on if you want to tear down the existing place to develope the block, or if you can develope the block and keep existing house).
You will want to look at timing your buying with your time on shore and block leave to make the post of your options and possibilities.
And do heaps of reading, one can never learn too much.
Check out your first home buyers options.
Look for larger developement potential blocks with a ready rental income now. If its worth renovating, do that too. (Depends on if you want to tear down the existing place to develope the block, or if you can develope the block and keep existing house).
You will want to look at timing your buying with your time on shore and block leave to make the post of your options and possibilities.
And do heaps of reading, one can never learn too much.
Your young, why are you in such a hurry to strap on the cuffs? Go out and be reckless with your cash, enjoy yourself with your mates, go overseas, tinker with a few cars and come back to this in 5 years i say. My dad pushed me to buy a house when i was 18 and i ignored it, this was around 2001 when prices doubled in a year, if i had of listened to him i would be better off now financially but wouldnt have the perspective i gained by travelling around the world. Not to mention all the fun i had on weekends with my mates which cost a lot of money but again, priceless memories...
If your going to make money in this game the opportunities are always there, youth unfortunantly is fleeting so make sure you enjoy it.
If your going to make money in this game the opportunities are always there, youth unfortunantly is fleeting so make sure you enjoy it.
While this is true, just remember time in the market and a balanced lifestyle.
One or two early set and forget ips while you travel and make the most of being young can set you up really well for when your ready to settledown and focus on a retirement plan.
But i agree each to their own and you are only young once.
Cheers
Only 17
Hey Speedy, you know what, go out and experience life, take a deep breath and travel, see the world for 12 months. You will come back worldly and ready to go. I bet there is many on this forum who wish they did this at 17/18 me included. You never know what's around the corner. Plenty of time to get into mortgages and build your fortune. Gee you will be 19 when you get back!!! I chose to stay home and work when my mates travelled around Australia for 6 months. Worst decision I ever made. They still talk about the trip today and that was 25 years ago. Go and have some fun.
Hey Speedy, you know what, go out and experience life, take a deep breath and travel, see the world for 12 months. You will come back worldly and ready to go. I bet there is many on this forum who wish they did this at 17/18 me included. You never know what's around the corner. Plenty of time to get into mortgages and build your fortune. Gee you will be 19 when you get back!!! I chose to stay home and work when my mates travelled around Australia for 6 months. Worst decision I ever made. They still talk about the trip today and that was 25 years ago. Go and have some fun.
Baby steps...
Hold onto your enthusiasim, establish exactly the results you want to achieve short term, mid term, long term, have a detailed action plan, get a mentor who walks the walk, start constructing your professional investing team of experts, save up a deposit and get house/mortgage - nothing flash though, and smash the mortgage as fast as you can, capital growth is probable and as you continue to read books and learn all aspects of property investing/ strategies you will have some equity that you can use as leverage to purchase a few IP'S, at this point you will have set hopefully a strong foundation (from careful due diligence) and you will have some experience and momentum moving forward, study property development, real estate, negotiation, strata, economics, submerge yourself and when times get tough, as they surely will, never loose that enthusiasim, and you will succeed.
Hold onto your enthusiasim, establish exactly the results you want to achieve short term, mid term, long term, have a detailed action plan, get a mentor who walks the walk, start constructing your professional investing team of experts, save up a deposit and get house/mortgage - nothing flash though, and smash the mortgage as fast as you can, capital growth is probable and as you continue to read books and learn all aspects of property investing/ strategies you will have some equity that you can use as leverage to purchase a few IP'S, at this point you will have set hopefully a strong foundation (from careful due diligence) and you will have some experience and momentum moving forward, study property development, real estate, negotiation, strata, economics, submerge yourself and when times get tough, as they surely will, never loose that enthusiasim, and you will succeed.
What are you guys talking about?
He will see the world, that's what happens when you join the navy, and on the cheap too.
I did what these people are saying, joined the navy, traveled, traveled and then traveled some more. I wish I bought a couple of ip's along the way.
The way I see it you can buy an ip and still travel. Your in the navy man.
You can do both. I agree with one of the other comments, live on board for a couple of years.
I dont know what these guys are on about either traveling and working arent exclusive I think it is the best way to see the world and get to know what another country is really like. Buy a few assets ( shares, nuetral property) go travel and come back to a nice little nest egg. There is more to life than just being a slave for money, life is for living. When travelling amazing opportunties pop up. I scored a job following the professional rodeo circuit around america, on mines and ranches and was offered plenty of others.
