Yeah, that's my aim also. It will take a few years to get there, and I'm already behind on my schedule.
Overnight success takes 10 years of hard work to achieve.
Blackman
Developing Full Time
- Thread starter Chomp
- Start date
Yeah, that's my aim also. It will take a few years to get there, and I'm already behind on my schedule.
Overnight success takes 10 years of hard work to achieve.
Blackman
I remember funding a development where the client had no income source. He provided solid deposit (50% from memory) and a cash deposit to cover interest for 2 years up front, even though the schedule was for a 12 month build.
Very capital intensive way of doing it, but he was happy.
This was pre gfc days so not sure if it would be possible now.
Blacky
Thanks, that is interesting, your right very intensive, if it goes belly up you could also get wiped out fairly easily.
He was pretty cashed up, so could tip more cash in if he had to. It wouldn't have wiped him out in a hurry.
I think for us 'normal' people any development going belly up would wipe us out pretty easily. I know I've come close and survival required me to throw everything I had at it. Liquidating every asset possible, borrowing more, living like a uni student, doing every drop of over time possible etc etch etc. but you do it to survive. If you do, you're in with a chance.
Blacky
too many trees
Just to go a little off topic... I am looking at a 1 into 5 lot subdivision and wondering if any of you others have experienced the need and cost to remove some large gum trees. Council has indicated that in theory the trees can go ( need to have submitted DA for the final say) but there are 12 large gums. Am I looking at more than $10,000
Any comments on tress appreciated.
Just to go a little off topic... I am looking at a 1 into 5 lot subdivision and wondering if any of you others have experienced the need and cost to remove some large gum trees. Council has indicated that in theory the trees can go ( need to have submitted DA for the final say) but there are 12 large gums. Am I looking at more than $10,000
Any comments on tress appreciated.
Off the top of my head I have some suggestions:
* You need to buildup your cash reserves. Can you build or do a reno for others while you do your next development?
* If you get off the tools while you develop (ideal) you could still keep working while you develop. Go to the site before and after work. It sounds like you can answer your phone during work hours too. And if what you are developing isn't a 3-4 unit site then this should be doable. It will just take longer.
* Developing is cash intensive. If you quit work job and don't have any other source of income you may then be forced to sell what you develop. This at times will happen at prices you aren't happy with. Have you considered this?
Oscar
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He actually does that right now - doing feasibilities/organising permits etc for clients.
You're a registered builder, maybe find a partner, build a much larger development and take a builders margin on what you and your partner develop, in addition to the profit you make as partner at the end of the job. This will give you your income throughout the job.
Thanks Sprightly. I'm always happy to assist provided i can add value.
...and the construction too.
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Thanks everyone,
I have 50k a year passive already, so I think my plan of attack is to keep working full time for the near future (six months), pick up a triplex block, get finance and a builder to do the triplex for me, my numbers say I would still make more money than just doing a sub division / reno myself. (build up some more cash / equity)
See if I can pick up someone / developer who needs a registered builder part time so I still have time to do my own thing on the side. If I can get this, its good bye johnny punch clock.
Chomp
I have 50k a year passive already, so I think my plan of attack is to keep working full time for the near future (six months), pick up a triplex block, get finance and a builder to do the triplex for me, my numbers say I would still make more money than just doing a sub division / reno myself. (build up some more cash / equity)
See if I can pick up someone / developer who needs a registered builder part time so I still have time to do my own thing on the side. If I can get this, its good bye johnny punch clock.
Chomp
What's the source of this mate? Some possibilities here.
