How to begin a career in developing

[sanj]

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?

My very first development made me more than that and all I had was $100k for deposit, stamp duty and subdivision costs. It really isn't that difficult if it's something suited to you so Gary could beat that theoretically.

Also the only way to not be inexperienced is to get said experience, what's the worst that could happen? A bit of money lost, not the end of the world.

 

[LeoT]

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?

lol. good money?

Joey I know some developers, they spend maybe 100 hours or less on a duplex project and make about 400k in say 18 months or less.

100 hours = 400k

Normal Job 2850 hours to earn even 150k = peanuts.

There is no comparison.

And talking about risk... who wants to risk 2850 hours of their life when they can earn quadruple the amount in only 100 hours or so?

Some food for thought.

 

[LeoT]

My very first development made me more than that and all I had was $100k for deposit, stamp duty and subdivision costs. It really isn't that difficult if it's something suited to you so Gary could beat that theoretically.

Also the only way to not be inexperienced is to get said experience, what's the worst that could happen? A bit of money lost, not the end of the world.

I tend to agree with you Sanj. Its actually quite hard to lose all your money, unless you do absolutely stupid things, otherwise its a worthwhile risk for reward if it suits ones personality.

 

[LeoT]

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?

That's the mindset/attitude of 95% of society. That's why 95% of society live mediocre lives.

 

[GaryK]

lol. good money?

Joey I know some developers, they spend maybe 100 hours or less on a duplex project and make about 400k in say 18 months or less.

100 hours = 400k

Normal Job 2850 hours to earn even 150k = peanuts.

There is no comparison.

And talking about risk... who wants to risk 2850 hours of their life when they can earn quadruple the amount in only 100 hours or so?

Some food for thought.

LeoT. That is exactly why I want to get into development. Yes, I did well selling the online business for the profit that I did but I worked tirelessly in the last few years making many sacrifices to create and grow the business. I had no time for friends or even family, working till very late on weekdays and weekends.

 

[GaryK]

My very first development made me more than that and all I had was $100k for deposit, stamp duty and subdivision costs. It really isn't that difficult if it's something suited to you so Gary could beat that theoretically.

Also the only way to not be inexperienced is to get said experience, what's the worst that could happen? A bit of money lost, not the end of the world.

Hey Sanj..
Do you mind sharing some ore details on your first development and how you would suggest for me to go about my first development given the current maket conditions, capital and income?

 

[LeoT]

I truly believe its worthwhile to

A) Development course OR
B) find yourself a mentor who is willing to teach u at least the basics .

 

[Joeyv]

lol. good money?

Joey I know some developers, they spend maybe 100 hours or less on a duplex project and make about 400k in say 18 months or less.

100 hours = 400k

Normal Job 2850 hours to earn even 150k = peanuts.

There is no comparison.

And talking about risk... who wants to risk 2850 hours of their life when they can earn quadruple the amount in only 100 hours or so?

Some food for thought.

150k to "most" people is not peanuts

Hey Sanj..
Do you mind sharing some ore details on your first development and how you would suggest for me to go about my first development given the current maket conditions, capital and income?

Please tell us sanj how you made 100k into more than 600k

 

[sanj]

150k to "most" people is not peanuts




Please tell us sanj how you made 100k into more than 600k

i didnt make it into more than 600k, i made it into more than 140k which is his annual salary. my point was in response to your view it wasnt worth doing if he earnt that much but he could double his salary if he kept his job or match it if he didnt and spend a hell of a lot less time on it than his job

ill respond in detail to gary after

 

[LeoT]

150k to "most" people is not peanuts


150k for 2850 hours plus is very, very harsh. Its what society would have you believe is 'above average' even.

Most people live in this matrix Joey. I know its hard to understand because it requires a complete shift in mindset. Once this is actually understood, that you DONT have to work 40 hours a week, the best years of your life..for the next 30-50 years... and settle for 80k, then ppl start to realise.. ****.. can I actually earn xyz for much less time, effort put in? It starts to open up doors in your reality and life takes on a new meaning.

I know this isn't what everyone wants, but I suspect a large majority of ppl would LOVE to have more financial independence in their life and not struggle after 40 years of working and left with a stupid super that isn't barely enough to cover a decent standard of living.

 

[sanj]

i didnt make it into more than 600k, i made it into more than 140k which is his annual salary. my point was in response to your view it wasnt worth doing if he earnt that much but he could double his salary if he kept his job or match it if he didnt and spend a hell of a lot less time on it than his job

ill respond in detail to gary after

sorry for late response gary

basically i bought an old dump in morley on i think 995sqm or so, R20/25 zoning which meant with creative thinking it was a triplex site

kept the house and subdivided a block off for sale, from memory i got around $229k or so for the block. Also got approvals to further subdivide the block (which wouldve involved demolishing the house) but sold the house for around the $395k mark or so, cant remember exactly.

Total cash in was around the $110k mark from memory including deposit, stamp duty, subdivision costs and very minor renos.

Profit around the $180k mark i think

A hell of a lot less work thna a 40 hour a week job for an entire year which is why a lot of people do things like this.

This was my first solo development (around 2008 i think) so i only had very limited capital and had to find a project that would suit that.

 

[Mr. Fabulous]

Hi Gary, you might want get in touch with Myf (westminster). She offers a mentoring service, but she's in Perth and may be WA-centric.

 

[albanga]

Just curious why an online mogul is posting a development thread in a where to buy board

 

[westminster]

Hi Gary, you might want get in touch with Myf (westminster). She offers a mentoring service, but she's in Perth and may be WA-centric.

Gary congrats on the sale. As you say that took a lot of hard work and sacrifices to make that happen and you'd like to put that hard earned cash into making a work-live balance for the future. I totally get that. I did developing part time whilst I had a well paying job to help assist get loans etc and this year I gave up that job to develop full time and get that work-life balance.

As Mr Fab said above I do mentoring but I am WA based and besides strategy and goals, the majority of my knowledge that I teach is about developing in WA. If you are interested in remotely developing it might be an option for you.

 

[rizzle]

worthwhile risk for reward if it suits ones personality.

Can you elaborate on what you mean about personality?

 

[oc1]

Can you elaborate on what you mean about personality?

Some people are complete stress heads who are rattled with each and every obstacle. you need good problem solving skills, the ability to own each situation rather than looking to blame someone and the ability to see the bigger picture. Many would go under capitalised as well adding to their stress level.

Then there are those who think they can do anything and everything but have no fu*%#g idea.

Oscar

 

[LeoT]

Can you elaborate on what you mean about personality?

Hi Rizzle,

Well I think it needs to suit two things IMO,

1. A person's risk profile
2. A persons personality. If you are the type of person who worries endlessly if a tenant is going to smash your place then its probably not for you. With regards to specific attributes, I think you need to be extremely proactive, don't freak out at challenges and be solutions focused with a can do attitude and happy to learn a lot along the way. I think if someone ticks all these boxes then it most likely suits their personality.

Hope that helps.

 

[china]

150k to "most" people is not peanuts


150k for 2850 hours plus is very, very harsh. Its what society would have you believe is 'above average' even.

Most people live in this matrix Joey. I know its hard to understand because it requires a complete shift in mindset. Once this is actually understood, that you DONT have to work 40 hours a week, the best years of your life..for the next 30-50 years... and settle for 80k, then ppl start to realise.. ****.. can I actually earn xyz for much less time, effort put in? It starts to open up doors in your reality and life takes on a new meaning.

I know this isn't what everyone wants, but I suspect a large majority of ppl would LOVE to have more financial independence in their life and not struggle after 40 years of working and left with a stupid super that isn't barely enough to cover a decent standard of living.

Absolutely agree. There is a book called the "Four Hour work week" which discusses this principle very well. Certainly shifted my mindset.

In my limited experience with mini - wins with shares and even just with the rising value of my PPOR or the meagre rent I receive from tenant - I can fully testify that the traditional 40 hour work week is merely some form of societal enslavement (return for effort and time is too small) and to break out requires a mindset change and participating in some form of passive income generation.

 

[LeoT]

Absolutely agree. There is a book called the "Four Hour work week" which discusses this principle very well. Certainly shifted my mindset.

In my limited experience with mini - wins with shares and even just with the rising value of my PPOR or the meagre rent I receive from tenant - I can fully testify that the traditional 40 hour work week is merely some form of societal enslavement (return for effort and time is too small) and to break out requires a mindset change and participating in some form of passive income generation.

HI China,

Yup your right it requires a massive shift in mindset. This is where most ppl fail, as its the hardest thing to do.

 

[rizzle]

requires a mindset change and participating in some form of passive income generation.

I have this mindset, but how do I follow through when I'm paying down my $400k PPOR mortgage on my sole income?

Second job? More education? Patience? 100% IP loans?