Life advise....

[JKWS.]

Life advice....

Hey everyone,

I'm only new to this forum/ forums in general however it's proving to help me out allot with my property hurdles. So I thought I'd test the waters and see exactly how helpful you all are with life hurdles

I'm a 25 year old kid who works abroad at sea. I make great money and get to travel for with work.. So the lifestyle is pretty amazing, We do work ridiculous hours and allot is expected of us but I'm 25 and can deal with that it and all the crazy people.

My battle is this, I'm property mad. My dream is to one day own a development company, doing deals and giving the world functional beautiful and most importantly affordable property's to enjoy.

All my money now goes towards education on the subject and small developments of my own In low coast/poor economic areas. I'm learning allot.

Financially next year I'll have my property's neutral not costing me any money/ nor making me any. I could sell up and be left with 280k after taxes.

If I stay with current job for another 3 years I'll have 200k payed off my current property's and 3 more years of self education under my belt.

Now my problem is my mistakes, I'm not making enough being out of the loop and stringing small developments together. I feel I need hands on experience that I'm just not getting abroad. The process is very straight forward to for me in the current circumstance, find online, neg via email, buy land, drawings and approvals through architects, build, hold/ sell.

I'll do a duplex without even seeing the site!

What's everyone's opinion on this matter? As I'm young should I just keep going with a job that doesn't suffice in order to one day live my dream.

Or

Simply start living my dream?

 

[TMNT]

you could start by telling the difference between "advice" and "advise"

 

[LoneWolf]

Come on TMNT, give him a break

Buddy, I will say, good on you, such young age with such big ambitions.

My advice would be, take a step at a time, becoming a developer overnight will not start paying yourself off from day one, it will take time.

 

[JKWS.]

you could start by telling the difference between "advice" and "advise"

Thanks TMNT

 

[MarkB]

Should I just keep going with a job that doesn't suffice in order to one day live my dream ~ Or simply start living my dream?

Or...

Can you get a job that pays similar coin but that keeps you on land and close to your projects (ie not travelling as much)?

As admirable as the "fig it, just do it" approach is.

I'm unsure how wise it is when you're looking at going into a high risk industry full-time.

 

[nhg]

I'm on/was on a similar boat (Just turned 28).

Priorities change as well so don't expect for things to go the way you plan right now.

Simply put, how is what you're doing going to help you get to where you want to go.

Yes you need cash to do developments, but if you're doing BIG developments, you will never have enough of your own cash, you will need to learn to hussle and do JV's, bringing the site, builders and investors all together.

Does working overseas help you do that. I was on good coin working on road construction projects in the bush, but then it dawned on me, it didn't get me where I wanted to go and an extra $30k saved per year wasn't going to do much for me for a very very long time. I'd rather not be 50 and starting to develop.

 

[westminster]

Now my problem is my mistakes, I'm not making enough being out of the loop and stringing small developments together. I feel I need hands on experience that I'm just not getting abroad. The process is very straight forward to for me in the current circumstance, find online, neg via email, buy land, drawings and approvals through architects, build, hold/ sell.

I'll do a duplex without even seeing the site!

What's everyone's opinion on this matter? As I'm young should I just keep going with a job that doesn't suffice in order to one day live my dream.

Or

Simply start living my dream?

My concern at the moment that your past projects aren't cash flow positive even though you are doing small developments.

So I think your area of learning/growing which I guess you have caught onto is better due diligence, less mistakes and aim ONLY for projects which are at least 20% profit. 30% gross profit or more can be attained and then also look for positive yield on those developments if renting out.

You are only going to be able to move into bigger developments if you make bigger profits.

Stick with the high paying job and use your development education to do better projects every time so that you get enough equity to release to do a really good development which will have a 40% gross profit and then come home and use that equity to keep rolling with good ones.

 

[LoneWolf]

WM, on that note, if it was you at the early stages, would you suggest to sell up or rent them out, or a combination of both?

My concern at the moment that your past projects aren't cash flow positive even though you are doing small developments.

So I think your area of learning/growing which I guess you have caught onto is better due diligence, less mistakes and aim ONLY for projects which are at least 20% profit. 30% gross profit or more can be attained and then also look for positive yield on those developments if renting out.

You are only going to be able to move into bigger developments if you make bigger profits.

Stick with the high paying job and use your development education to do better projects every time so that you get enough equity to release to do a really good development which will have a 40% gross profit and then come home and use that equity to keep rolling with good ones.

 

[westminster]

WM, on that note, if it was you at the early stages, would you suggest to sell up or rent them out, or a combination of both?

Tax is only going to make the amount less so I would keep them unless they are really big mistakes and sucking money out.

Salary in offsets to get a good cash buffer for a development plus I'd get a LOC(s) at 80% of the equity (which is way better than 40-50% tax) to do a bigger/better development. If selling everything would give $280k then I have to assume that there is $500k or so in equity which could generate $400k in LOC money

I'd really need to see some figures/property listing to give better advice but my simple gut feel on what (s)he has said is hold them not fold them

 

[property_girl]

you could start by telling the difference between "advice" and "advise"

That's just mean. I am sure I as an editor could pick holes in everything you write.

 

[LoneWolf]

Ok thanks WM,

Basically, hold and draw equity for future developments, got you, thanks

Tax is only going to make the amount less so I would keep them unless they are really big mistakes and sucking money out.

Salary in offsets to get a good cash buffer for a development plus I'd get a LOC(s) at 80% of the equity (which is way better than 40-50% tax) to do a bigger/better development. If selling everything would give $280k then I have to assume that there is $500k or so in equity which could generate $400k in LOC money

I'd really need to see some figures/property listing to give better advice but my simple gut feel on what (s)he has said is hold them not fold them

 

[TMNT]

That's just mean. I am sure I as an editor could pick holes in everything you write.

yeah it was a bit mean, but there is a difference between a typo and simple bad grammar, unfortunately, i'm a bit pedantic about bad grammar

the most common no-nos I see are

"I want some advise"
then vs than
Your vs you're

 

[westminster]

Ok thanks WM,

Basically, hold and draw equity for future developments, got you, thanks

Once you have enough money to play in the deep end of the pool and complete a nice triple pike with a twist then sell off the ones that have floaties on them to survive.

Some people won't like to do it this way but I think it's a valid strategy for starting up to use the money to get to bigger projects rather than giving it to the ATO.

 

[property_girl]

yeah it was a bit mean, but there is a difference between a typo and simple bad grammar, unfortunately, i'm a bit pedantic about bad grammar

the most common no-nos I see are

"I want some advise"
then vs than
Your vs you're

Should read: "Yeah, it was a bit mean. But there is a difference between a typ and bad grammar. Unfortunately, I'm a bit pedantic about bad grammar."

 

[LoneWolf]

Clearly, it's better to hold if possible

Once you have enough money to play in the deep end of the pool and complete a nice triple pike with a twist then sell off the ones that have floaties on them to survive.

Some people won't like to do it this way but I think it's a valid strategy for starting up to use the money to get to bigger projects rather than giving it to the ATO.

 

[JKWS.]

Such great advice guys thank you.

Im already leaning towards staying with the high paying job option from the above. There is allot of experience in these posts and its priceless.

If there is a few key steps anyone can recommend for moving forward that would be great-

My concern at the moment that your past projects aren't cash flow positive even though you are doing small developments.

Ive tried land banking this year on a few small blocks, mostly my projects are 20%... I couldn't agree more otherwise.

 

[D.T.]

Should read: "Yeah, it was a bit mean. But there is a difference between a typ and bad grammar. Unfortunately, I'm a bit pedantic about bad grammar."

What's a typ?

 

[LoneWolf]

What's a typ?

Guys, stop this, let's stick to the point of this post

 

[Blixsem]

yeah it was a bit mean, but there is a difference between a typo and simple bad grammar, unfortunately, i'm a bit pedantic about bad grammar

the most common no-nos I see are

"I want some advise"
then vs than
Your vs you're

Dumb *** is u

 

[Waldo]

Ive tried land banking this year on a few small blocks, mostly my projects are 20%... I couldn't agree more otherwise.

Land banking with the hope that the value will go up or waiting for rezoning? If you're serious about development you need to find deals that stack up at purchase price, rather than 'hoping' that they will become profitable in the future.

Your situation in general - I think you'll find it easier to continue with the developments with the high income, even if it means you have to pay someone to project manage parts of it (or pay a buyers agent to source the deals for you). I would personally continue with what you're doing currently - working & doing small developments on the side while building up your equity reserves.

Congrats on doing so well at such a young age!