New investor looking for accelerated growth

I cant see how 50K (if that's all you have) will fast track your wealth creation. JVs worth getting involved in generally will require you to invest a few hundred thousand.

 

if you learn more about option strategies- eg. negotiate call options on adjourning properties, and sell on to developers, you make money without initial outlay, apart from some time spent on negotiating, and speaking to council about potential DA, etc.

you can also do sub-leasing in popular locations, without much outlay initially, and still get passive income out of it.

 

Hi Ryano,

have you got a chance to speak to anyone from Giumelli Group? I am assessing it still, not sure whether I should join or not. It is not cheap, 1100 per month for 12 months if you don't want the mentoring and just join to participate in projects as a JV partner.

would like to hear your thought on this. Thanks, Fullrun

 

Hi Fullrun

Had a good chat with giumelligroup,
Their strategy is very promising and I could see the great potential for quick turn around and lower risk.
As they do not take part in actual builds.

We decided not to go with them for now as you mentioned their fee is a bit high for my current situation. We will likely revisit them in the future when we can commit to the fees.

 

With limited capital you want to be putting that to work to derive the best return possible and I'd dare say if this is going to fees then that isn't going to deliver that. I'd work on building your capital so you are in a position to do a smaller project or capitalize if a JV opportunity does come up.

Until then I'd continue to take the approach that you are and actively learning ahead of going through your own experience.

We do projects full time now (including JVs) but this took years to build up to in terms of knowledge, capability and contacts. The best tip I can give you is to start small before you jump into something big.

 

Hi RyanO,

Thank you for sharing! I had a chat with them as well. they started in 2014, and so far have completed 3 projects, with 25 currently ongoing. the structure is better, but then again, we lose large part of the control of the project to him. He is charging default 8% for borrowing on his end of the structure, presumably there is spread of min.3%.

Also, there is ambiguities when it comes to purchase price, BA fee, engineering costs, etc. there could be potential conflicts of interest here.

However, the upside is that the projects he does typically are bigger size 3-25 lots subdivisions, which delivers better profit margin than your typical 2-4 subdivisions mum and dads do.

i am still weighing the pros and cons.

I am thinking also that if i buy a lot with future CG potential (already allowing subdivisions) -i.e. landbanking, and do a progressive subdivision myself, that may not be a bad option.

I've already learned the subdivision techniques from Dymphna, just having put them to use.

Incidentally, Giumelli Group allows business partners to team up and join, so maybe we could consider teaming up and join and share the 1100/month cost without mentoring.

Thanks and regards,
Fullrun