Transitioning to Property Development

Hi All,

Just wanted to talk with people that have successfully transitioned into property development from another industry. Currently I work within IT and Telecommunication have run multimillion dollar project and products. I have also completed two developments, two renovations and run property maintenance business.

My passion is property and I am really wanting to move into property full time. I am considering trying to work alongside a developer either consulting or project managing whilst I continue to build my experience as a developer.

I am hoping to get some advice from people that have done this successfully or have gone from corporate job to setting up their own property development business and understand what was keys to doing this successfully.

Thanks

 

I am also in IT and have done a few small developments and I am keen to get into property development full time. I started by reading property , finance and self help (motivation ) books and this forum which led me into doing a property development and finance degree at uni whilst working full time

The plan is to quit my IT job after I finish my degree and take a massive paycut (Probably have to start at bottom) to join one of the big property development companies to get some eexperience and good contacts before I start my own development business.

 

Big Daddy, you’re at very similar stage to where I am at. I actually trying to avoid taking a massive pay cut though. So while doing a couple development while gaining a year or two experience may subsidise the loss in income. What type of roles are you looking at? Also have you considered just biting the bullet and going it on your own?

 

What sort of development? Contrary to popular opinion you can hold a full time job AND knock over a development at the same time. Doing one development at a time isn't full time work, trust me. This would be the safer approach.

Also consider that you may not like developing; it's not everyone's cup of tea.

 

When you say 'going it on your own' do you mean offering a project management service for others or buying,developing and selling your own developments?

 

Agree with OC1. I have plans to become a developer one day but due to all the bills i have to pay is better to work full time and do developments on the side line.

Changing careers will also takes time to learn and having a big pay cut. It may also affect your lifestyle and borrowing capacity to buy more properties.

 

Probably not what you want to hear but I used to do IT recruitment for nearly 10 years, moved into exec search recently.

In that time I saw many people from IT crossing over into other industries. From boost juice franchisee to building and development which has been one of the more popular ones and everything in between.

Almost all of the ones that I have dealt with came back into IT within a matter of a few years (some sooner and some later) and they had a very hard time competing with candidates who had continuous experience in IT once they had returned.

One that comes to mind was actually a good PM that had managed huge programs of work within IT. He was explaining to me when he transferred from corporate world into blue collar world he found there is a vast difference in how people operate and communicate.

It is a good transformation and I wish you all the best but be mindful that its not going to be easy. I myself am in a similar position.

 

Yes, agree as well

Safer to start doing it with the comfort of a full time job, start small, 1 project per year and see if you like it.

Also you need to be able to source finance, no job no finance.

You can also learn a lot on this forum, there are a few full time developers who have posted some of their deals, check these out, keep reading and learning.

All the best

Marisa

 

OC1 i have completed a couple development while working full time. I really enjoy the development process but to do it for other i guess i need more runs on the board and thats what i am trying to explore.

 

MRO offering end to end project management services.

 

Tenex,

Thats very insightful! thank you! and yes i actually do know a few people who haven't made the cross over successfully. Personally the next step for me in IT is to get into the senior management and the passion and drive isnt there. I guess my reasons is that i love everything to do with property i currently mentor family and friends, i own a property maintenance business and have been developing for a few years now. Property is where i want to be, and i agree there is risk associate with the move but i rather try and fail then never try. I back my well established network in IT will be able to assist me if things turn pear shape

 

I've been working in IT for 12 years and it's just a paycheck for me. I don't like the job or office politics and my pay has not changed in 5 years . Can't change because other companies are paying lower due to the 40 to 50% cut recruitment companies take on my hourly pay.

I'm doing some developments whilst I work but I'm not comfortable offering my services for a fee until I get more experience. My plan is to move fast up he ranks in a property company and be on similar pay after a few years

 

Being in it in guessing it involves a lot of computer time . Utilise that time to keep reading here but also run as much as you can your desk. You can chase up quotes,email council, research products /materials, email builders, then sneak phone calls as you need. Obviously don't sacrifice you JOB, but multi task, while others play solitaire you'll be making money!
Jumping across will need to be well thought out pending your situation and upcoming dev work. Do you have any leave or long service? Perhaps you can take some time off? Or arrange with your boss a day a week arrangement instead of block leave.... And there's always sickies

Do you want to get your hands dirty and be on site supervising, or coordinating trades? That's another beast altogether. I did meet a semi retired chippy on a site who went owner-builder and was up to his 4th house (up to his 2nd child's place) and did the lot literally, called in mates as he needed. Want a quick job but kept him going