I often get asked if Property development is risk so here it is.

Firstly that’s a very broad question - anything is risky if you don’t understand it. So if you know nothing about development, have no education and go buy a property and expect to find out on the way – yeah its risky. Not to say you wont make a profit, but it’s a lot riskier.
The more you know and the better you apply it, the less risky it gets. Research is the best way to minimize the risk and patience also. Don’t be in a rush to run in and get a deal because you think you will lose it, impatience causes you to overlook things you should have seen.
If you have a good base knowledge on development, following what you know, apply the seven stages, research carefully and do a very good feaso – the risk is greatly reduced and you can end up making a great profit.

Cheers
Carly

G’Day,

Sometimes people ask me the same questions quite a bit, especially people who are wanting to know a bit more about deciding to get involved in property development so I thought I would share two of the most common questions I get asked with you.

People often ask me what made me get into Property Development.

I was looking for a game and looking to make money. I had little education, no money, no credentials and NO IDEA WHAT TO DO! When I was about 16 I accidentally found a book on property investment and was instantly interested. I decided to get involved. I really knew nothing about the subject – I remember being so confused by the word equity for the longest time, I literally knew NOTHING on the subject. As I learnt more and met more people in the industry I discovered that property developers were the top of the food chain and they were calling the shots and making the big bucks – that sounded pretty good to me!
There were so many factors that attracted me to property development, the idea of building something from nothing, creating a vision from start to scratch, the freedom to do other things I love, not having a boss but being my own boss, the profits and also the fact that I didn’t have to go back to school. I love learning, but I learn well while on the job as opposed to at a desk.

A lot of people ask me whether or not I think Property Development is for everybody.

Yes and no. I think that anyone and everyone CAN do it, I don’t think everyone and anyone SHOULD do it.
It really isn’t an untouchable industry, it’s quite accessible and quite possible for anyone to learn about it and get started and make a great life through property development.
However not everyone is passionate about property and I think that anything you are going to do, do it passionately. Yes it can make you a lot of money, but a rich life has little to do with money and a lot to do with passion.
I love driving around on the weekend and staring at properties, almost every morning I walk around my suburb and look at all the houses. I imagine how they were developed or what they could be, who owns them and what they look like inside. I can sit and look at property magazines for hours – even when I’m not in the market to buy, well I’m always in the market to buy J
But if the idea of looking at property, doing deals, getting creative and building something from scratch – if this does not appeal to you, then do something else with your time and energy that will give you a better emotional return.
However I do think that everyone should OWN property, its such a solid and trusty asset to have and its something that you can always fall back on. So if active property does not appeal to you, then get someone else to do it on your behalf. This would be armchair development or passive investing and we help clients do this to. This would suit someone who doesn’t have the time or the inclination to do it themselves although they do like the sound of the returns. The returns wont be as high but they can still be pretty healthy.

If you are trying to decide if property development is for you then if you have a passion for property, a desire to add to your income and the determination to succeed then it is definitely worth it and the rewards are huge.

Cheers
Carly

Some people tend to think that property development is all about building, its actually more about deal-making. Good developers have creative minds, think like entrepreneurs, and are always looking for that great next deal.

If you don’t already, learn to love looking for properties and working out how it could possibly work. Deals don’t always fall into your lap…a good property deal is like a puzzle, you need to look at each piece and play around with it to make the whole thing fit together to give you the perfect and profitable picture.
But like any deal-making, you need to know what you are dealing in before you can put a deal together. If you don’t understand the product you will get stumped and not be able to piece the puzzle together. But once you understand the product you will be in control and know how to make it work.
Every single product that we use goes through a product cycle, and property is just a product. Don’t over-think it or let the price tags overwhelm you, it a product like anything else with a specific product cycle.

Somebody things about creating a product, they get a team of professionals to create it, they package it up and give it to a wholesaler, they pass it onto a retailer and a retailer sells it to the guy on the street – someone walks in and sees an item in a shop, pulls out their wallet and pays for it. At every single stage, someone is making money – except for the final stage, the retail stage – when somebody is paying the money for every single other person on the cycle to make the money.
So on the property cycle you have two choices, you can either make the money or pay the money…which one do you prefer?
I’m going to assume you want to make the money, which means that you cant be the last person on the product cycle, walking into a real estate agents office and buy the property “off the shelf” so to speak. If you do this, the only way you can make money on that property is to now wait years, wait for time to make the money for you.
Let’s get active, take action and get earlier on the product cycle so that the second we buy we are already on our way to creating the profit, not waiting for the profit.
Before I show you how this works in property terms, I’ll break it down using a product just about anyone would have been involved in at some time – coca cola.
You go to a restaurant for a coke, it costs you $4.50. You think to yourself, “I can get this cheaper”. You know that around the corner you can get the same coke for $3.00. By having a little bit of knowledge you can cut of 1/3rd of the price.

If you have more knowledge of coca cola you would know that the supermarket sells the same product for $2 – the more knowledge you have, the more control you have over what you pay for the product. The less you know, the more you will be controlled in terms of what you pay.
If you understood the wholesale side of coke you could go direct to coca cola and buy it from them for $1 a bottle – exactly the same coke at less than a quarter of price, because you know the language to talk when you are dealing wholesale.
Do you think coke still make money selling at $1 a bottle? Of course they do! Because they can make the product for half that, just 50 cents.

That’s property development and that’s where you start to rock and roll. Imagine being able to create a product that the market will buy for 9 times the value of what it cost you to create it, now you become the supplier.
To create and supply the product you need to have the recipe and the ingredients. If you have no money to buy the ingredients, but you know the recipe – there is still an option.
Get the product for free, by becoming the dealmaker. More than 80% of my properties and developments have been acquired this way, by putting a deal together using other people’s money (OPM) and you could do exactly the same.
You put a deal together that allows you to access the property today, you then take actions to increase the value of the property. Once you have increased the value of the property you then sell it or re-finance to draw down on the equity. With this extra equity created you then pay back the owner or whoever else you borrowed the money from, and you keep the remaining profit.
This strategy allows you to buy, renovate and develop without needing a deposit and without needing any cash-flow for mortgage repayments. In fact you use absolutely NONE of your own money, and if you’re like me when I first started developing – you might have no money, and so this is great way to get started.
And so you see that the more knowledge you have, the earlier you can get on the product cycle of property and the more money you could possibly make. To get earlier on the product cycle you need to understand the product of property development.

Cheers
Carly

Property Development is an incredible vehicle for creating wealth, but one that is misunderstood and as a result often overlooked by many Aussies.

Passive versus Active
There are many different ways to invest in property – old, new, houses, units, positive geared, negative geared, buy and hold, buy and sell, buy and renovate…its endless. And truth is that a lot of people get caught up in this, you can get so caught up in all the different strategies and trying to learn and understand it all and five years later…you realized you still haven’t bought anything! Sound familiar?

Well, lets get rid of all the confusion. Lets take it back to basics and look at strategy. I reckon there are two basics strategies when it comes to property – passive and active.

Passive is when you buy a property and you hold it, maybe you live in it or maybe you rent it out. The intention is that time will improve the value of the property, and so it called passive because technically you don’t do anything to make money from it. You sit back and you wait. This is a great way to invest, and I actually do invest passively. First property I ever invested in was a passive investment. But I realized it was going to take literally decades – about 30 years – before it would ever be a millionaire.

I thought there must be a much faster way to do it, and there is. Active property. This is when you take action and do something to increase the value of the property, such as property development.
You don’t sit and wait for time to make the money, your actions create the money.
I wouldn’t say that one is better than the other, I actually like both strategies and they both create fantastic results. It comes down to when you want to see the results. If you are willing to wait 25 -30 years before you see the big results, then passive is absolutely going to work for you.
If you would like to see some results in your life this year, and in the next couple of years then I would suggest Active property and that’s exactly what we are talking about in this book.
You want to be in the drivers seat, able to take action to create the profits that could change your life and give you choices and freedom to do the things you love.
Once you start playing the property development game you can cover both strategies – passive and active. Get active in creating money and property through development, and then hold some of the properties and watch them keep doubling in value every ten years or so – it’s a magic strategy that will give you cashflow and strong assets to fall back on.

For a free DVD that will show you some strategies that you can use, call 02 9371 4799 or email info@ccorp.com.au to secure your free DVD valued at $147.

Cheers
Carly