How to begin a career in developing

Discussion in 'Where to Buy' started by GaryK, 27th Oct, 2014.

  1. GaryK

    GaryK Member

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    Hi guys,

    I am new here.

    I have just sold my online company and have 580k I want to utilise in beginning a career in developing. I am from the south-eastern suburbs in Melbourne.
    What would be the best way to start ? land with permit/without ?
    How do I structure? deal with builders?
    What should my price range be for land, building and other costs ?
    What would be a 'safe' first project potential ?

    Any information would be helpful

    Thanks

    Gary
     
  2. beachgurl

    beachgurl Member

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    Start small. Have you done any renovating before or built a single house? I'm currently doing a splitter block project and building a single home previously has really helped make the project easier. That said, I've heard of othes going straight into a 4 pack. Depends on finance too. You'll go into commercial territory most likely with anything bigger than 3 so if finance is tight you may need to start smaller
     
  3. Terry_w

    Terry_w Member

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    Developing is risky. first thing to do is to get some legal advice on asset protection.

    Second would be to work out how you are going to finance a development without a job or source of income.

    Then consider structure.
     
  4. GaryK

    GaryK Member

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    Thanks for the quick reply.

    I might add that i have a 140k/year salary from a different online venture. Therefore wanted to utilise the funds and the income to enter the market
     
  5. LoneWolf

    LoneWolf Winter is coming....

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    There is a few developers on here.

    Depending on your budget, there are many ways to go about it. Structure, finanace, legal, where to buy etc..

    I am currently doing a 4 unit development in melb
     
  6. Moneyman_85

    Moneyman_85 Member

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    Wow, I've got to learn about these online ventures

    Do you mind if I ask what business?
     
  7. PHP

    PHP Member

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    If you don't mind me asking, what sort of online business was this that you have just sold? You don't have to answer if you don't want to. Just out of curiosity. :D

    Moneyman, same thoughts. :D:D:p
     
  8. Terry_w

    Terry_w Member

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    That is a great situation to be in.
     
  9. jpcashflow

    jpcashflow Member

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    Hi

    Hi,
    Developing might sound glamorous but its a tough business and very rewarding :).

    We have started developing this year and it has been a success.
    My business partner and I have been friends for 24 years (where both 30).
    Where lucky in a sense that my business partner is a builder and a good one and I am a mortgage broker. So we have combined our skills to ensure we are better then average.

    We have two parts to our business:
    1) We construct houses / units for any one that meets there budget and we offer a touch of quality. We do not run on high margins, we prefer quality then making a quick buck.
    2) We buy properties in very good areas in Melbourne and Build Units / Townshouses of great quality.

    Getting into developing is not easy but its worth the challenge :)
     
  10. Joeyv

    Joeyv Member

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    With that sort of income why bother with developing? Lol
     
  11. Television

    Television Schemin' and dreamin'

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    Why does Warren keeping buying stocks?
     
  12. oc1

    oc1 Developer

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    Why limit your income?

    Anyway, done safely, developing is a great way to increase income and equity. Best thing to do is find a friend/relative or friend of a friend that has developed before and pick their brain. I don't think developing is for everyone.

    Oscar
     
  13. D.T.

    D.T. Property Lookerafterer

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    Care to elaborate more on this bit?
     
  14. sanj

    sanj Member

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    Seriously? You can make a hell of a lot more than that developing and not be tied down by a job
     
  15. sanj

    sanj Member

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    Totally agree. Work out if it is in fact suited to your personality and aptitude. You can maybe do this by learning off developers in terms of mistakes, difficulties etc but often unfortunately the only way to work it out is if you try doing one so start small.

    Alternatively Gary you could site down with oc1 and see if the 2 of you could mm do a JV of some kind for your first one as he has the expertise, you have the capital and you're both in melbourne.
     
  16. imer.m

    imer.m Member

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    Hi Gary,

    To answer your specific question
    1. Don't buy with permits-do it your self. If you buy with permits, the other guy has already made money on that particular property and your margin will be a lot lower.
    2. What should my price range be? The more expensive you go the bigger the return. Keep in mind the more expensive you go, the more difficult it becomes.
    3. Speak to real estate agents and ask what to build and what do people want.
    4. Get a good architect.
    5. Finally and most important, get a good, honest, experienced builder. Me lol


    Imer
     
  17. Joeyv

    Joeyv Member

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    Developing is a job.

    I am just thinking if the op makes good money doing something he already knows how to why risk doing something he doesn't?
     
  18. Joeyv

    Joeyv Member

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    Developing is a job.

    I am just thinking if the op makes good money doing something he already knows how to why risk doing something he doesn't?
     
  19. sanj

    sanj Member

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    I don't consider doing one off developments to be a job.

    Also just because something is going fairly well doesn't mean you choose to stagnate and not try anything new
     
  20. Joeyv

    Joeyv Member

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    The op original question is "how to begin a career in developing"


    There is no harm in trying something new but if the op makes 140 k per year and sold a business he started few years ago for 580k how is he going to beat that being an inexperienced property developer?