Mentoring?

Discussion in 'Adding Value' started by NealC, 13th Jan, 2015.

  1. NealC

    NealC Member

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    Hi guys, I'm new to the forum and wanted to start a thread to get some advice from the brilliant minds on this forum.

    I have been doing ALOT of research on property development and I want to start a project of maybe a one into two block subdivision or a divide and retain to start with. I've read that it's important to have a mentor or someone who is a developer and has reasonable success to be able to pitch questions to and get advice from on deals.

    What I'm stuck on is how to find someone to help me take action. I am so hell bent on learning all I can about developing. I was just in fiji for a week and every spare moment I got I was reading and searching realestate.com.au for deals and searching this forum for info (it was far too humid to do anything) . If anyone can point me in the right direction or is willing to meet me and help me out I would appreciate it. I live in Perth.
     
  2. D.T.

    D.T. Property Lookerafterer

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    If you've been doing ALOT of research, which parts are you still unsure of and therefore need a mentor's help with?

    Alternatively you can discuss anything on these forums and get multiple different viewpoints on your ideas for free :)
     
  3. bumblegoodie

    bumblegoodie Call me BG

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    DT is right.

    We are all here to share knowledge and experiences.

    Iam in the same boat as you are and i have been reading alot lately during my break.

    If you have read alot of thread you would have already found out who is doing what development at the moment,

    Very inspirational ppl here and this is exactly the ppl i have common with and willing to share my knowledge also.

    Look through this section "Adding value"and soon you will see the already exprienced developers
     
  4. NealC

    NealC Member

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    D.T. I think what I'm struggling with most is finding a good deal (and knowing what to look for to keep finding good deals) and also the finance side.

    Heres a bit about my background. Im 26 yo and have been interested in property since being a child. My mother was in real estate in Perth for 15 years and had her own RE agency based in the canningvale area. I have been a real estate agent (all for a short 12 months :cool: ) and studied property valuation in Sydney but have been out of any real estate scene for a while besides building my PPOR (which has about $60k equity In it and is sitting at about 85% LVR).

    The finance side is confusing to me sometimes. For example, if i find and buy a good block of land that i plan to subdivide, how do you finance the $30k odd for the subdivision of land?

    Sorry if this is in the wrong section.
     
  5. NealC

    NealC Member

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    Bumblegoodie I have noticed everyone here is great and willing to share which is why I'm here :)

    I love reading about the deals that everyone is doing and learn from that.
     
  6. westminster

    westminster P Plate Developer

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    I think one of your first steps will be to talk to a broker on here and see what your budget can be considering your cash, equity, assets and job.

    Subdivision costs are generally cash. The reality is that you need quite a bit of cash/non mortgaged funds to develop. It is sometimes possible to wrap these costs into construction loan but I wouldn't take it for granted - the LVR and valuations need to stack up.
     
  7. MTR

    MTR Bling Bling

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    Are you looking at developing in Perth?

    If so, plenty of posts on various projects currently progressing/completed by SS members in Perth in this section.
     
    Last edited: 13th Jan, 2015
  8. NealC

    NealC Member

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    Westminster thanks for your input. I like hearing from people like yourself with experience in what I'm looking at doing.

    I have a broker and actually just had valuers come by to do a Val. Should get that tonight or tomorrow. My broker is great and will get me the funds I need to purchase. Its just the subdivision costs. I realise it's predominantly a cash thing but are there ways to get it done using someone else's money?
     
  9. Brady

    Brady Big 4 Banker

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    This would be a discussion you would of / should of had with your broker already. Is this why the valuation is being completed, to release equity/funds to use for the development costs?

    Every step of the way with development requires $$$ council, architect, engineer, services, surveyor, conveyancer, builder........
     
  10. NealC

    NealC Member

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    MTR, yes looking in Perth. I've already read some of the projects going on (Westminster's included) but will definitely keep on reading and taking notes.
     
  11. NealC

    NealC Member

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    Yeah he knows about what I want to do but still early stages and he first wants to see how much I can borrow so I know my limits.
     
  12. Brady

    Brady Big 4 Banker

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    Good move, get val done. Extract equity earlier. Easier to get money when you don't need it. And plan attack of purchases
     
  13. Jane - Hotspace

    Jane - Hotspace Member

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    Hi Neal,

    I would seriously consider using a buyers agent - even just for your first deal.

    So many people fall into the paralysis-by-analysis trap and a buyers agent will source the deal for you and then back it up with statistics. All this research you're doing will never be wasted; by understanding what you are being presented with (by the buyers agent), you can ask the right questions and really be confident that the deal is going to work for you.

    I have previously used buyers agents for 3 of my properties and I'm so glad I did. They a) sourced deals that I would never have found myself, b) negotiated a much better price than I could have myself and c) saved me probably hundreds of hours in research/freaking out time etc!

    You will pay them a fee, but if you take into consideration the fact that they source properties for a living, it could be worth it.

    Good luck!