building and development

[dkeski]

hi all

my name is daniel and i currently part run a sub contracting company. i dont know if you would call it a business but i would love to open a development company. i have an idea on what i would build but would like to know more on where to start as in when i find the right property or land how would i buy it and then fund the building or due you make a proposal to the bank or banks. iwould really like someone to help answer some questions if so meet up for a chat.

look forward to hear your answers

dan

[BMc]

Hi Dan,

It sounds like you need to do a bit of light reading on the subject first. There are millions of books on property investment and development, so have a browse through a large bookshop (or library) for a few hours. If you've still got any questions after that, you'll at least be able to get more useful information from any experts you come across. There are also plenty of forums and information pages on the internet but, like the books, may not be written by someone who actually has experience.

I haven't done any development myself, so take this post with a generous handful of salt. What I have seen people do in the past is go to the bank with a finance proposal outlining all the costs of the development and at the bottom put your expected sale price. Development is risky business (council approval delays, building delays, not finding an end buyer), so banks prefer to see that you get a good profit at the end of it, which I suspect is 20% plus. Make sure you allow for the extra interest if your development doesn't finish and sell as quickly as you thought.

Where'd I get this information? Way back when I was a trainee accountant, my boss had me draw up a finance proposal based on others he'd done. So bear in mind that this information is neither current nor necessarily accurate. However, it should give you a starting point to talk with a few banks and your accountant.

Good luck!

Ben.

[dkeski]

thanks ben

i have read a few books on property and was going to see my accountant about a sub contracting company i wish to open so was going to ask about that. i meet a property deleloper today and had a good chat as we currently work for him he had some good pointers and was quite helpful to the point of he liked my question.

thanks for the info

dan

[CraigMyton]

Hi Dan,

I recently did a property development bootcamp. It is run by a company called CCorp. www.ccorp.com.au The person that runs it is a woman called Carly Crutchfield. She is only 27 but is a highly respected If you want to know more there are always free seminars that you can go to and people are their to sell their courses. I heard about the course through the www.knowledgecentre.com.au you can sign up to a newsletter and they tell you when seminars are on.

The course/bootcamp was very good and I learned a lot from it and met up with a lot of like minded people. Sadly thought I haven't done any developing yet as I have another business, but I am always on the look out for potential deals.

Good luck with your developments and feel free to contact me should you have any other questions.

Craig