Property Developing - Do you have the right attributes?

I am not great with certain aspects of developing, in particular understanding exactly what is the potential of the land.

One thing I have learnt is if I don't understand something I need to employ the right professionals, don't try to muddle through as I might end up with a disaster on your hands.

I recently employed a town planner to help me pull together a development which was falling apart due to lack of communication between Council and Architect. The Town planner saved the day and though he cost me $ at the end he has saved me time and additional costs which would have been incurred.

I thought this was a good read

Do you have the right attributes?
While a property developer does not need to have intimate knowledge of all aspects of the development process, they must have a good understanding of the economy, property markets, the town planning process, building construction and finance so they can assemble a proficient team around themselves and manage them with credibility.

Before getting involved in property development, be honest and ask yourself:

• Do I have sufficient general property investment and market experience?
• Do I have the knowledge required to undertake a development?
• Have I assembled a good team around me?
• Do I have the time required to mange the project?
• Do I have deep enough pockets? Property development always seems to take more money than you initially think.

While property development can be very lucrative, many beginning property developers get themselves into trouble because they don’t know what they don’t know.

They step into a potential minefield without doing sufficient homework.

MTR

 

'in particular understanding exactly what is the potential of the land'

May i ask how pick your potential land? eg advertised with DA or do you use your town planner when picking land. Or did your town planner get you a better result than you expected in your example.

With those 5 questions in the above post first time I attempted to develop i would have to say no to all 5 questions. Only thing i knew was the potential of the land. Was also my first experience in real estate and the site i picked was also a potential PPOR so it did not bother me if nothing went to plan. Was a good learning experience (though i never actually completed the development - sold with the DA)

 

I am in Perth, site is in Melb, I had alerts set up, as soon as it hit the market I had a developer friend check it out, and we had it under contract within 1 hour. Home open scheduled for Saturday week, so that got cancelled. I had 3 days due diligence clause in place

I had my architect and townplanner view the site.

Next time I will just use town planner, his a gun

Did my feaso on worst case scenario 3 unit site, best case scenario 5. I ended up with 3

 

MTR, could you please explain the your process in finding the right town planner?

yellowpages, google? i think that is the hard part finding the right ppl to help which you have never dealt with and unsure what they charge?

 

Great question! @MTR I'm also interested in the general specifics of how they were used to help and what this assistance cost beyond any normal engagement of a town planner.

 

Contacts and networking with other developers/ínvestors, if you get a dud then it will be a waste of time. Can also vary in price, keep looking and ask for referrals/recommendations.

My town planner basically ran the show reviewed drawings, letters from council, communication with council and architect and other professionals, he also met with Council members and objectors working with them on various issues and also played hard ball when required.

He strategized so that we had all our ducks lined up, if something fell over we had plan B, understands what we can and can not do and need nerves of steel, also attends VCAT and wins many cases.
My T/P was working as a town planner for council for 25 years prior to starting his own consultancy business so he also knows many planners and understands the beast.

Once my T/P got involved everything started going in the right direction, I put it down to experience/knowledge, my architect would be up the creek without a paddle, it was the TP that saved the day.....

MTR

 

I'm in Melbournes eastern suburbs (already have my block) & looking for a gr8 town planner - is he out east, name if your happy to

 

I'm in knox area with very good contacts if that's the area you are in.....