Running multiple projects at the same time?

[mrdobalina]

For all the experienced developers out there... Do you have any thoughts or recommendations on running multiple projects at the same time?

I've decided this year is the year to start developing a few of our development blocks, landbanked over the years. I'm thinking of running 3 projects concurrently (developments of sizes 4 units, 4 units and 8 units). I'm just wondering if I'm going to bite off more than I can chew and spread myself too thinly and run into a lot of trouble.

I'm guessing the developments will all be progressed at different rates, so they won't all finish at the same time. They will all be rented out for income once finished. There will be other blocks lined up in the pipeline to be developed once these ones are done.

There is no constraints with financing. I work full time, and the other half stays at home to look after the kids. I tend to be a person who does things 120%, or don't bother doing at all.

 

[Ace in the Hole]

I'm not a very experienced developer, but just completed a 5 and 6 townhous builds in Brisbane. Construction on the 6 lot started immediately after the 5 lot finished, so all the prep work was being done for the 2nd development while the first development was being built.
As this was interstate, I owe many thanks to my project manager for pulling this off for me, he was working a job at the time too.
I was running a biz full time during the process so didn't spend much time on it at all, only visited the sites about 3 times all up covering both developments.
Like you will do, we are holding all long term for cashflow.

If you stagger them a bit, it shouldn't be a problem.
Also, we learned some good lessons from the first dev, which we applied to the 2nd which was close behind.
Personally, I like to bite of more than I can chew, then are simply forced to improve myself and achieve more, or fail, but that is never an option.
If you give 120%, and have the serviceability, you can certainly do it.
I'd stage them a bit just in case you get delays or hit a few problems, which you almost certainly will. It's how you deal with this issues which will make you.

Got to say, adding 16 brand new properties to your portfolio, with more developments to come, you're doing very well to accumulate these.
Must be some decent equity and cashflow behind you.

Good luck with it, it can be testing but the lessons learnt are worth it.

 

[Aaron Sice]

you may need a project manager for the number you are dealing with.

otherwise, be firm but expect delays.

 

[JenJen]

If you have great project management skills, then no problem! Go for it! As long as you can finance it, plan and run multiple project streams well, navigate issues, and have an abundance of spare time to commit to managing things! Good Luck.

Cheers

Jen

 

[mrdobalina]

you may need a project manager for the number you are dealing with..

Good point. Thanks Aaron, I didn't think about that. An additional cost I didn't plan for.

Thoughts on 1 builder for economies of scale, or multiple builders to spread the risk?

 

[mrdobalina]

If you have great project management skills, then no problem! Go for it! As long as you can finance it, plan and run multiple project streams well, navigate issues, and have an abundance of spare time to commit to managing things! Good Luck.

Spare time is certainly something I don't have an abundance of :/

 

[mrdobalina]

I'm not a very experienced developer, but just completed a 5 and 6 townhous builds in Brisbane. Construction on the 6 lot started immediately after the 5 lot finished, so all the prep work was being done for the 2nd development while the first development was being built.
As this was interstate, I owe many thanks to my project manager for pulling this off for me, he was working a job at the time too.

Good luck with it, it can be testing but the lessons learnt are worth it.

Wow.... Building 11 units interstate. That is a phenomenal effort!

 

[Ace in the Hole]

Thanks, but my project manager did 95% of the work.
I pretty much signed all the docs, paid the bills and made some choices and decisions.

As you are time poor, you will need a good project manager.

 

[mrdobalina]

As you are time poor, you will need a good project manager.

Where would I find a good project manager?
Do you think it would be a full time role or part time role?

 

[westminster]

For all the experienced developers out there... Do you have any thoughts or recommendations on running multiple projects at the same time?

I've decided this year is the year to start developing a few of our development blocks, landbanked over the years. I'm thinking of running 3 projects concurrently (developments of sizes 4 units, 4 units and 8 units). I'm just wondering if I'm going to bite off more than I can chew and spread myself too thinly and run into a lot of trouble.

I'm guessing the developments will all be progressed at different rates, so they won't all finish at the same time. They will all be rented out for income once finished. There will be other blocks lined up in the pipeline to be developed once these ones are done.

There is no constraints with financing. I work full time, and the other half stays at home to look after the kids. I tend to be a person who does things 120%, or don't bother doing at all.

You could but I would stagger - this may naturally happen due to different locations and different councils.
I have 3 on the go at the moment (4 + 4 + 3). The most time required from me is during design phase and then prestart phase - and fighting council phase . After that weekly site visits.
You can reduce prestart/colour anguish by using an interior designer to do that or your partner might have a flair for it.

 

[Ace in the Hole]

Should be a part time role.
Builder should provide a full time site foreman during construction, so your guy won't have to be on site too much.
It's mostly organizing all the parties such as architects, town planner, int designer, engineers, surveyors, etc, then monitoring everything during the build until completion, always looking ahead of time to make sure all work in together in order.

 

[mrdobalina]

I have 3 on the go at the moment (4 + 4 + 3). The most time required from me is during design phase and then prestart phase - and fighting council phase . After that weekly site visits.

Hi Westminster. How did you find managing 3 on the go at one time? Are you working at the same time, or have spare time during the day to oversee everything?

 

[westminster]

Hi Westminster. How did you find managing 3 on the go at one time? Are you working at the same time, or have spare time during the day to oversee everything?

I gave up sleep
3 kids plus a management job. I do a nine day fortnight though so every second Friday is off. I try and do all my appointments on that day if I can.
I do have a builder though who does everything for me - design, town planning, building then handles the strata. All I need to do is work on design with them and do the prestart. I am very hands on but only where I can add value.

 

[mrdobalina]

I do have a builder though who does everything for me - design, town planning, building then handles the strata.

You went with Inspired right? How did you find them?

 

[mrdobalina]

If I'm building these units at one time, would you guys recommend I go with one builder or spread the risk with two builders? If I went with one builder, could I expect to negotiate a discount for the volume? Would it stretch their tradies (and caused delays) if they were working on so many at the same time?

 

[Ace in the Hole]

Depends on the design and the builders situation.
The builder of my first lot was not competitive on the 2nd.
Id get different builders to quote each project, and you could also ask for a bulk quote, but it could be bad if they look like they are not performing on the first job.
Spread the risk.

 

[mrdobalina]

Thanks Ace. We are drawing plans with a drafty on all the projects, so not tied to any builder. I think it will be prudent to spread the risk.