Last issue I showed you how to go about finding a development site so hopefully you have taken some time to look for some possibilities. But how do you know if they are anything more than possibilities? Well as I said, Property Development is a matter of applying seven simple steps. So now you know how to go about Step 1 – Finding a Development Site, it is time to learn how to do Step 2 - Site Analysis.

Quick Calculation
Once you have found a site you need to be able to do a quick calculation so that you can assess whether or not it is worth spending more time on. You will need to know your basic costs in order to do a rough calculation such as land purchase cost, building costs, retail value once built, consultant costs. These costs are relatively easy to approximate and at this stage you are only jotting down estimates to see if is something worth pursuing. For example if saw a development site with approval for 6 Townhouse you would do a quick calculation to see if it may be profitable:

6 Townhouses

Income = $3,000,000
Land costs = $900,000
Building costs = $1,200,000
Consultant costs = $50,000
Stamp duty = $16,000
Selling fee’s = $90,000

Profit = $744,000

Check out the local council
Once you have done a rough costing and you know that there is profit potential in the development then it is time to take other matters into consideration such as council guidelines and zoning. The local council is a great source of information. If the site is already DA approved then a lot of the work has been done already. The architect and engineer who did the approved plans may be able to provide valuable information.

Another area that you will need to research is any environmental factors that may have an impact on the success of the development such as access to water, sewerage, telecommunications and power. These can be costly if not already provided. This is the stage where you will have to take a look at the actual site by visiting it so that you get to see anything that may not be visible on aerial maps or drawings such as power lines that may run through the site. You will need to look for such things as are there any heritage issues in the area, is the site liable to flooding, are there any easements on the land, is it going to be easy to drill into the ground or is it made of rock.

* Water
* Sewerage
* Telecommunications
* Power
* Flood issues
* Easements
* Caveats
* Soil type
* Rates or taxes owning
* Heritage issues

Demographics of an area are really important
Demographics of the area will also have a huge impact on the development. You will need to know who will buy in the area, what type of housing is needed, is there a shortage of certain types of dwellings, is the area predominantly single people or couples, families or elderly people? These answers will all have an impact on what you build, how many bedrooms you will need, what size houses are most likely to sell, and therefore have a huge impact on your profits as you need to be selling something that the area requires.

What is happening in the area?
Whilst it is important to check the current market it is also important to check out anything that may affect it in the future such as planned infrastructure. This will give you a better idea of what to build. By finding out the demographics and the future planned infrastructure you are then able to build properties that you will have no problem selling and as this is where your profit lies. Doing a site analysis is one of the most important steps in property development. You want to make sure that you project suits local requirements and therefore targeted at the right market. Continued market research will allow you to see what areas are experiencing a growth and which area is experiencing a decline so that you are not developing in an area that it is going to be difficult to sell. By checking out the local real estate market, you will be able to see how long it is taking properties to sell in the area you are looking to develop in. This will give you a good indication on how quickly you will be able to sell and again, how quickly you will make your profits. But I will focus more on selling at step 7 – selling.

What are my choices?
The main two types of sites are DA approved or Raw. A raw site has no planning approved and based on local council zoning guides, is up to you to research and decide what you can put on the site. A DA approved site has a lot of the work done already and with plans approved, there is a lot less that you need to do as architect and engineer plans will have already been drawn up. If you wish to make a slight variation to the DA then this is possible and may be accomplished by applying to the local council.

This is the stage where you fully analyse and get acquainted with the site. You will also need to look for anything that may be owing on the site such as rates or taxes. Council will have a big impact on what you can build so you will need to familiarize yourself with the terminology. Jump on their website and browse around the different planning maps and zoning guidelines for the area. You will be able to find out from council, information such as the minimum size per site, any street frontage requirements, any specific building materials that must be used, and the development plan for the area. Once you have determined through a quick calculation that the development is worth looking into further and you have done your market research on the area and researched the site, then the next step is to run a detailed feasibility with actual cost of everything involved to see what your profits will be. Negotiating is a key and a major influence on the profitability of any development but I will be telling you more about Step 3 – Financial Feasibility, in the next issue.
Log onto www.cdevelop.com.au to download free reports and find out more about the courses we offer on Property development. Call 02 9371 4799 or email info@ccorp.com.au for more information.

Property development can be broken down into seven basic stages. If you can grasp each stage and understand the basics then you can avail yourself of this fantastic wealth creation strategy that is property development.

This issue we are going to start right at the beginning with stage one and look at how do we actually find a site that is worth developing.

Stage 1: Finding a Site

It can sometimes be difficult to know where to start when first trying to get into Property Development and where to start looking for sites that may be profitable. There are many bargains to be taken advantage of in today’s economic climate, you just need to know where to look and start looking.

Where can you find sites? I have really learnt that great development sites can come from just about anywhere, so the bigger your network the better. To start building a network and finding sites you can look on the Internet, in your local paper as well as your State newspaper and also your local real estate agents. These will generally show you all the properties that are on the market. However there is another way to look for properties that are actually “off market”. You see a lot of development sites are actually sold before they ever officially become “on the market”. To find these sites you need to get yourself hooked up with a development agent, similar to a real estate agent but they generally only deal in properties where you can add value by developing in some way. If you look under the business section of the paper, under commercial and investment properties then you will find sites that are suitable for developing but you will also find the contacts of development agents, call these agents and ask to be on their contact list. They will then email you periodically with their potential development sites that are not available to the open market!

Another great way to find potential deals, is by driving through an area and looking for abandoned development sites. These present great bargains as usually construction will have come to a halt due to lack of funding and the vendor will be looking for a quick sale. The vendor or developer may need to sell at below current market value and there’s a high chance that there will be an option to get creative when doing a deal as the vendor will be prepared to take extra measures due to their situation. You can often negotiate something that is win-win for you both and might even mean you don’t have to invest any of your own money! (But more of that in Stage 4, when I’ll tell you about no money down deals). There are also many opportunities to create business partnerships in these situations. When getting involved in properties that have already started construction, be careful to do your research in regards to what has been done, what hasn’t been done and why construction halted. This will save you time and money in the long run.

When looking for a site, research is very important. You really need to know the area that you are looking at developing in extremely well as you will need to pick an area that allows for the type of development you wish to do. Go onto the local council website and you will be able to find a lot of information by browsing through it and familiarizing yourself with the content. If there is something you don’t understand you can call the council and talk to someone, usually the town planner, as they are generally very happy to help and advise. What the council wants to see in the area is a key factor and it is advisable to build up a good rapport with the local council.

While you are browsing through the council website, if you come across words that you do not understand look them up or ask the council what they mean specifically. This is quite important because if you do not understand the content you will start to feel lost and you will not be able to make sense of what you are reading/looking at. Familiarise yourself with the council and city maps such as the Zoning Maps and the Land Environmental Plans (LEPs). Understanding the terminology, not just with the council, but also in other areas of property development in general, is also a key factor to being able to succeed.

Research not only involves knowing your area well, it also involves educating yourself on the property market. Factors such as supply and demand of housing, what suburbs have a rising trend and which have had a drop in prices in recent years, whether you should be making offers above or below the current market price etc, will all affect your end result. Local real estate agents, various property websites and RP Data can all give you a lot of information on these trends.

Networking is also a great way to find sites! You can start networking and building your contacts such as builders, site managers, project managers, architects, town planners and other investors involved in the property development game.

You should network with anybody and everybody, friends, family, local shop owners, local real estate agents, neighbours, mortgage brokers, council, long term residents, plumbers, financial planners – let them all know what you are interested in. You want to get other people on the lookout for you too, doing the legwork and research for you where possible. Alert local real estate agents and development agents of what your criteria is such as the area you want, size of development, profit margin you are looking for, style of dwellings you wish to construct, your price range etc. You may also find that you may be able to help them too.

With the right tools and knowledge at your fingertips you will start to find yourself coming across more and more sites that may have potential for a lot of profit.

If you would like to do a practical exercise, jump onto your local council website and go to the development section, click onto the zoning map for your local area and check it out. This will show you the development potential of every property in your area. A great way to research and confirm potential development site and something I have been using since I first got started in property development.

Next issue we will move onto Stage 2: Site Analysis which is all about doing the right research on a property once you find it. In the meantime, happy property hunting!

This year Ccorp is going to be massive!!
You can either watch the hype or you can get involved! We are having several free events this year, check these out and come down to any that are in your area.

March
13th – 14th Massive Property Results – Melbourne
20th – 21st Massive Property Results – Brisbane
27th - CDevelop One day workshop – Adelaide

April
18th - CDevelop One Day workshop – Brisbane

May
15th – 16th Massive Property Results – Adelaide
22nd – 23rd Massive Property Results – Sydney

Check out these links for more info on these spectacular events
Www.massiveresults.com.au/property
Www.cdevelop.com.au/onedayworkshop

Dates are prone to change, however, if you are interested in coming along to one of these free events and have any questions, email them through to info@ccorp.com.au or call us on 02 9371 4799. Hope to see you there

I don’t know about you, but after recovering from our first Massive Results Bootcamp in Sydney, I am really excited about our upcoming one in Gold Coast. Were you there? I’m incredibly proud of what we were able to achieve over those 2 days. This is what one person said, “I was only there for a few hours and I felt so activated that I went out and took action on the business ideas I’ve had germinating for years.” There are so many examples of this and I’m so excited to hear all the stories that will come out of that weekend years into the future. The highlight of these events whether it’s property development or business, it’s the REAL DEALS that get put together on the day that are always the most amazing. Can’t quite put my finger on it, but I think it has a lot to do with showing people how easy it can be to turn a dream or idea into a reality. So what’s the key to turning something into reality? Well I’d argue that it’s all about Joint Ventures.

Massive Results showed that there’s lots of people out there with a vision but it can be quickly realised when they tap in to the potential of others ­ it might be marketing, websites, a database or a 100 other things. Who’d have known that a whole business could be put together in 15 minutes purely from a group of strangers in a room. But I bet the guys who had an idea for an Asian Education company, the gentleman with a passion to raise $10 million to protect Australian land and the woman who¹s going to help mothers through her online network are now convinced that proximity to more communication or individuals and turning that into JVs is definitely a powerful thing when wanting to turn an idea into a reality.

It’s basically networking on the next level. It’s not about finding people who are going to be useful to your wealth aspirations, but seeing what value you can add to what they’re doing. I’m sure that the deals we did on stage weren’t the only conversations that were had at Cresults ­ but I know the potential is even higher. I know that there are deals to be put together on CCLUB!!! It might be property, you have a piece of land or you want to invest in a deal that has a 20% margin, it could be that you have the next best internet business or solution to a major problem in the world - DONT WAIT! There will always be more CCORP events, but why wait, do something TODAY. Let us know your idea! Tell people what you’re looking for! Reveal your skills for everyone to see! See results on business you’ve been sitting on…YOU CAN DO IT!!

Cheers
Carly

This is one of the single most asked question when purchasing property….
The question that people should actually be asking themselves is… Which area has the best growth for me to invest in?

The thing is, it doesn’t matter when, how, who, or why, it is a question of growth. Believe it or not, most of you will actually ask your friend, aunt, uncle, mum or dad for advice on where to invest, instead of finding out which area is going to have the best growth in the near future… I mean, your friend or family may have brought their investment property 3 years ago and their property increased in value ten folds, however this may not be the case now! This is exactly why growth is very important when investing in property… Not House and Land or Land or Off the Plan, it is all about growth… Growth in population, growth in development, or growth in infrastructure, this is the key to investing in property. When you learn this, you will find yourself heading in the right direction… Fast!
We base our seminars around this information and we are always open to you coming along and experiencing this for yourself!

Check out our website for further information on our upcoming Advanced Property Investment & Finance tour now…www.cmoney.com.au/events. We are launching this amazing event in Adelaide this week followed by Brisbane, Melbourne and Sydney.

Cheers
Carly

G’Day,

Just wanted to let all our fantastic CCLUB members know some exciting news about our Massive Results Bootcamp coming up in September (www.massiveresults.com.au). I’ve booked one of my favourite conference venues in Sydney – it’s the Convention Centre in spectacular Darling Harbour (not too far from our new office actually )

It’s such a great venue, and really sets the stage for this more business and coaching orientated event. I’m putting a lot of my time at the moment into making sure that what I communicate during those 2 days is going to be really applicable, and help you guys to take more ACTION than ever before. I can’t wait to hear the stories!!!

I was also hanging out with entrepreneur extraordinaire Dale Beaumont the other day and we were chatting about my new book that I’m writing and explaining the vision for the Massive Results Bootcamp. Such a great guy and I know that what he’s gonna bring will seriously inspire your socks off!!!

Remember to register for your FREE spots by clicking on our website www.massiveresults.com.au or alternatively call my office on 02 9371 4799.

Why not bring your family, friends and business partners along to this event and show them what they’ve been missing out on! I’m hoping that this is going to be the biggest event I’ve ever done!

See ya soon,

Carls

G’Day Guys,

Well as you’ve probably already heard, something very exciting is happening in September…and it’s not just our 4th Live Bootcamp of 2009 in Perth starting on the 25th September (shameless plug:) ) but we are launching something fascinating and completely new within CCORP!!

If you’ve been following our website (www.ccorp.com.au) then you’ll probably have noticed the steady stream of new companies being added to the CCORP group. Even in an economic downturn, CCORP has been massively expanding. I have had many business people and individuals ask me what my secret is and how do I run my companies in such a way as to achieve the phenomenal results that I have. After many requests and a lot of demand I have decided to take it a step further and show you how to achieve such results….. which brings me to my latest company CResults.

I designed CResults to help others to achieve their absolute maximum potential in life and business, it will have a have a massive impact on your life and absolutely everyone will be able to benefit from it! If I was to describe CResults in its simplest form, its about teaching you the strategies I’ve implemented within CCORP that will help you as an individual, as an employee or business owner so you can experience unlimited growth and reach unprecedented heights. I will be teaching you the secrets, tips and techniques that I use to achieve the most I can in my life and in my business and how you can achieve constant growth in both your life & business too.

I will be holding a Massive Results Bootcamp on 4th & 5th September and I am launching this with a MASSIVE KICK!!! At this two day event there will be massive giveaways, and lots of fun along with the most important detail….drum roll……. I am giving away the first tickets absolutely FREE!! So go to www.massiveresults.com.au to book your seat now for this two-day event and change your life around and achieve your dreams and success immediately.

The team and I really look forward to hosting you at this event. Let’s face it, it’s gonna be fun and it’s gonna change your life…of course it will, it’s CCORP! Oh and did I mention that we have a limited number of free tickets!? Don’t miss out, book in now at www.massiveresults.com.au. This is definitely a once in a lifetime opportunity!

Carly

G’Day,

Well I was in Queenstown, NZ last week for work with some of my Team and I came up with the idea that we should try as many new things as possible in our short time there. I love setting challenges and I’m a big advocate of always trying something new….It doesn’t always have to be terrifying and it doesn’t always have to be something big. You can invent small goals for yourself that are fun, achievable and a bit of a challenge, making you step outside your comfort zone.

So that brings me to our ‘100’ challenge when we hit Queenstown, New Zealand to experience 100 new things in 100 hours. Snowboarding, luging, gondolas, bungee jumping, jet boating, ball bouncing, good-food-eating, strange-drink-drinking, speed-dating, bar dancing, pub-crawling and much more is what it resulted in and it was really good fun.

You should try some time to set yourself a challenge where you write a list of say 5 things you want to achieve by this time next week. They must be realistic and things that it is possible to achieve, even if it takes some extra trying. If it gets you out of your comfort zone then brilliant. It could be something that you have been meaning to do for the past month but haven’t got round to it like going to the gym, taking up a hobby, being early for work, structuring your day, eating healthy for three days, doing five new things on Saturday etc…It could be anything that you have been meaning to do or would like to achieve but write down your list and DO IT by this time next week.

So see our ‘100 New Things in 100 hours’ video click on the following link and remember set yourself some challenges and they can be FUN!!!

http://www.youtube.com/watch?v=AjbEtTjEhfk

Carly

I was reading an article in Propety Investor recently when I saw the following article which, to me, definitely rings true;

‘The Australian economy may or may not technically be in recession, depending on which economic commentator you choose to believe. But there’s no doubt that the local economy has suffered a serious blow in the wake of the global financial crisis, and unemployment is on the way up. But what does the downturn mean for the property market and property investors?

When it rains, dedicated hikers don’t call off their expeditions – they pull on their waterproof gear and surge forward to reach their destination. In an economic downturn, dedicated investors react much the same, seeking out bulletproof properties that will achieve their goals in the long term.’

It is a case of having to research that bit more carefully and ensure you are investing in suburbs that have seen recent growth and are going to continue this growth trend. It involves getting out there and researching the demographics of the areas to see what types of people are living in the area and who is likely to buy in what suburb, about finding out what future infrastructure is planned for the area, seeing if the council have any particular needs for the area that you could provide and so much more. It is a time when you will need to really research the area in which you want to buy, invest or develop but also a time when this research will pay off a lot more than at other stages of the economic cycle.

‘In a tempestuous economy, where stocks plunge and blue-chip companies just hang on, finance reporting becomes more than a standard bulletin…it acts like a drip-feed to the world.’ Property Investor

There are so many different views and opinions on the current economic condition. New reports are being released daily, monitored closely, and people’s views are a reflection of what is portrayed in the media.

Let me say that there are so many development opportunities and I want to take this chance to encourage you to jump down from the sidelines and see these conditions as a chance to take advantage of the many uncompleted developments that are for sale, the number of bargains as vendors in distress need to offload stock, the number of houses for sale as people sell their second homes to stay out of debt and the many vendors that are willing to vendor finance in order to get a sale without too much loss.

I’m sure you’ve met many people who have said that they wished they snapped up property or jumped on the property ladder when prices were cheap in the last recession, I know I have. Don’t make the same mistake: make 2009 the year you decided to become rich.

“It’s not who we are that holds us back, it’s who we think we’re not.” - Michael Nolan

Some of you may think that your situation is different from everybody else’s or that your financial situation is way worse than others in the property game, or that you do not have enough money to start off…well let me tell you that you are wrong on all accounts! Firstly, people rarely ever have enough money and hence always looking for new ways to create and increase it, everybody has to start off somewhere. Secondly, most of the people that are already on the property ladder weren’t born with a fistful of cash in their hand and thirdly, there are plenty of distressed vendors willing to vendor finance and plenty of builders without work who are willing to Joint Venture.

It is about setting targets, breaking them down into achievable steps, be it just doing one small bit of research per day. There are many ways to get into property development using none of your own money. You need to take this knowledge and use it to become someone on the property ladder, playing the game and increasing your wealth, someone who is being looked upon from the sidelines rather than being the one on the sidelines afraid to join in. It is time to get out there and grab your slice of the bargains so start setting your targets now followed by realistic steps and a timeframe to get you there.

The CCORP Team!