Step 1: Getting Started
Before I attended the one day event with Mark I came across an advertisement in a local newspaper for a 19,000 m2 property in Northern NSW. It caught my attention, so I hung on to the paper. Even before I attended the three day event I saw this as a perfect opportunity to start learning.
Step 2: Find the Deal
As is my habit, I plunged in to the feasibility process. There were times however when I wondered whether I was ever going to get my head around what seemed such a complicated process.
My first feasibility took me weeks to complete and with all my questions I must have surely tested the patience of my coach at Massland. But I was determined to learn and by pursuing such a sizeable project, from the outset, it forced me to start talking to real estate agents, council town planners, civil engineers and the like. The learning process was incredible. Little by little and with dogged persistence, I started to understand. Never before had I attempted something of this magnitude – but the more I asked questions, the more I started to understand.
What I learnt during that period set me up for the three day event and it was at that event that I decided to continue with my training by pursuing 1 Ha residential development sites throughout South East Queensland as a joint venture partner with Massland.
Step 3: Choosing the Right Strategy – Short Option and 485 Letters
After 485 letters sent to potential sellers, discussions with 181 potential buyers with 19 expressing interest – I am moving ahead with the sourcing of properties, five feasibilities and three meetings with qualified sellers. Today, on Melbourne Cup Day, I completed my first Heads Of Agreement whereby the owners of the property will be paid $1,700,000 for their property under option with a projected profit for the ultimate buyer of $2,274,236 – with remaining profit of $802,980. As a joint venture partner with Massland I’m going to receive an amount yet to be disclosed – but the very fact that I now can complete feasibilities in a matter of hours, compared to the weeks that I spent on my first one demonstrates incredible progress. And the fact that I can navigate council websites with ease, have intelligent discussions with architects, town planners, builders, developers and sellers, use RP Data, know more about negotiation through Mark’s magnificent CD set and continue to acquire priceless knowledge through the webinars – I know for a fact that I have already acquired skills that are worth millions to me – both now and for the future.
And I have only just begun.
Step 4: Know the Numbers
From Dreams To Reality
The size of the block is 11,360m2 which means the site can be subdivided into 21 residential blocks making the deal very lucrative. Here are the numbers.
- Purchase/Option Price – $1,700,000
- Project Costs – $1,752,570
- Sale Price – $5,952,374.68
- Profit to JV Partners – $802,980
I can’t put a price on the education that I have received in just four short months and I’m now pushing ahead with the negotiation of other developments of similar size on behalf of Massland – while at the same time seeking out potential splitter opportunities so that I can not only make more profit, but also begin to build my property portfolio.
Conclave is in my sights – and my goal of developing small shopping centres in the future and simultaneously expanding my retail hair salon business throughout South East Queensland and financing my other business interests, is no longer just a dream, but is rather becoming more of a reality in my mind than ever before.