Steve and Jim are Becoming Developers with Massland!
Since attending Property Options and Conclave with Mark, my father and I have gone from strength to strength. We put together our first deal of 20 house blocks in a growing area of the Gold Coast at the end of last year. We joint ventured with Massland and made 20% profit on the deal using Massland’s money and expertise. Since that time, we have continued to scour for more deals – knowing our second profit share is 35%!
We found a cracker of a deal closer to Brisbane where we amalgamated two houses side by side with an area of 4068m2. In accordance with the owners’ wishes, we will keep one of the houses on a smaller piece of land leaving enough room to fit 13 townhouses on the remainder of the site.
We optioned the deal for $1.2 million and Mark was so impressed with the location of the site – Massland are going to become the Ultimate Buyer and Developer and build the townhouses themselves. As we are Conclave graduates we are going to joint venture with Massland in this project and will become the Project Managers and oversee the construction.
We are incredibly excited to not only have found the site but will see it evolve from the ground into an actual development and become people’s homes – it’s amazing stuff!
Step 1: Getting Started
We attended Property Options with Mark Rolton and were so impressed with the strategies and ideas he had around property, my father Jim and I decided to join Conclave. This Conclave weekend laid bare the steps in becoming Tomorrow’s Developer and was invaluable and comprehensive in its content. Armed with that knowledge we started looking for potential sites.
Step 2: Find the Deal
We firstly decided on our sector of residential townhouses. We started in our local area as Mark suggested and researched our council website to find the growth areas and where they would like to see townhouses. Using RP Data we targeted properties that fit our criteria and contacted owners to see if they would be open to an Option. That was how we found our first site with 20 house blocks.
For our next deal, we did exactly the same procedure again. We sent out letters to owners of properties where we knew the council wanted to see townhouses built and scheduled meetings with those who rang us back. From there we negotiated with two owners next door to each other – giving us a double site! One of the owners wanted to remain in their house but was happy for us to take the backyard in exchange for money, so we will divide off the house and the remaining site will be able to fit 13 townhouses. A cracker of a deal!
Step 3: Choosing the Right Strategy – Options
The strategy we chose is a Property Option which Mark taught us at our Property Options weekend. It gives us control of the property, even though we are not the owner and we have no debt and no risk. We can add value to the property with a Development Approval and on sell it to an Ultimate Buyer who would like to develop the land.
Mark and the Massland team were so impressed with the site and the deal we had struck, that they became our Ultimate Buyers and will go ahead and develop the 13 townhouses themselves. As Jim and myself attended Conclave and are keen to learn as much about the Development process as possible, we are going to be the Project Managers of the site and oversee the construction.
We are thrilled with the outcome! We will have the benefit and learning of seeing this project through to completion, which will be invaluable experience to develop our own sites in the future!
Step 4: Know the Numbers
Our second deal was so much easier to work out the numbers on our feasibility. Once you’ve gone through the Option process once, you have all the information you need to replicate deals again and again.
By checking what council wanted and being able to fit 13 townhouses onto the site, it makes for a very profitable deal for Massland and ourselves. Exciting and profitable times ahead!
- Option Price: $1,200,000
- Profit From Development: $1,200,000
It is fantastic to be able to joint venture with a company like Massland. They have 16 years of development experience behind them and working with them on this project will be invaluable for us. It will send our experience through the roof! To learn this type of education from a company is unheard of and for them to hold your hand throughout the process is incredible! We can’t wait to start building!