Property Development for Beginners – Is it for you?

by Kenneth Martin | Jun 13, 2024

Too many people get started in development having just completed the latest online course or weekend mastermind. Don’t get me wrong, I’m a supporter of courses and training, in fact I would encourage it however after 20years in the business I can assure you that your learnings (and mistakes) happen on the ground when you start developing in earnest.

There are too many factors that will differentiate your development project from being a success or a flop, but you need to start somewhere. Right?

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How NOT To Do Your Development #1: Without a Professional Team

This is perhaps the biggest one that most barely profitable Developers subscribe to. ‘If I just project manage this myself, I’ll save loads of money on professional fees… and I’ll learn much quicker’ Incorrect.

How many developments have you done to-date and how much profit have you made?

You have probably met more successful developers than unsuccessful developers. That’s because the unsuccessful developers get one or maybe two developments past them before they realise that it’s not all it’s cracked up to be and then they disappear back to the day job.

This stings I know, but there is a better way… Doing the following is NOT the way to Develop:

Become the Project Manager where you have NO experience (most people shouldn’t even attempt this)
Pick up the tool belt (you cannot replace the quality of skilled tradesmen)
Manage the Planning Process (It’s a language that only Planners understand)
Work out ALL of the costs (Let’s be real. You probably don’t know your personal monthly bills. Why do you think you can work out the development costs?
Change Specifications because there’s a cheaper way (a recipe for disaster. Legal Standards must be maintained)

Remember, you are trying to complete 1 or 2 successful projects on the way to building an actual Property Development Business that makes real money; not play money that’s barely enough to take the entire family out to eat and not at a ‘fancy’ restaurant.

On the ‘high end’ a simple house refurbishment might make up to £40K profit. Don’t start clapping yet. It’s taken you a year to source, purchase, build out, sell and after TAX you have circa £3K a month.

To put that into perspective… That’s hovering around the UK average salary so why RISK all of your time effort and worldly possessions for nothing more than the average…right?

Let’s think BIGGER…

Another scary fact is that some property development projects don’t make profits…

In short developments are a great way to make profit but you need to ensure that you have enough profit in the deal otherwise you are just working to pay professional fees, bank interest, labour and material costs and tax.

The Property Development ‘How To’

How do you feel about taking a year out of your life to do a development, throwing yourself into the mix to then realise you lost money because you didn’t know what to do or who to ask? How do we know?

Because we have a system that allows the developer to get prepared in the marketplace.

We know the game that’s not geared towards helping the taxman.

To really get proficient at Property Development and to reap the rewards for your time you need to have a system that puts your development on the right footing.

A system you control 100%, getting 100% of the profits and not trading time for no reward. A system that allows you to proficiently get through all of the tasks, get BETTER result.