property developing

[lethal]

This is something that I have always dreamed about doing maybe one day in the future and just want to know any other people's experiences doing in this, especially abroad? Also has any1 had any experience with land developing, and what sort of Capital is required these days!


lethal

 

[estwig]

//me goes to find a piece of string

The piece of string is about this long................

Sorry mate you gotta try harder, more info is needed

 

[mattley23]

Property developing is a massive area, all depends on what type of thing your trying to achieve (commecial developments, buying & selling, BTL etc). If your talking about the basic, buy-develop-sell then there is a host of free info out there, all you need to do is google 'property development'.

However if you have specific questions please feel free to post them as ive done a bit of developing myself.

One note though, with the interest rates only just rising its not the greatest time to look at buying and selling so id take several months researching the industry and the market you live in. hopefully by that time the market might be slightly more favourable for you to start buying. Having said that there are always bargains out there to buy, you just gotta find them!

 

[An Oasis]

Very difficult to find the right property in the UK, way too many people in the game. You need to look for "bad areas", which could become "good areas". Check out http://www.themovechannel.com/

 

[Spire]

Hi

Well I did 1 buy and develop last year, as a rookie it was my first, I am currently looking round for another property or land at the moment.

The one I did last year I bought at auction, then I knocked down 4 garden sheds, yes 4, he was a keen gardner the proir owner, tidy up the garden, then put it on the market I did nothing else at all to it, and made a handsome profit, given the amount of work I id on it.

The only problem is the intrest rates, I am a little nervous of them at the moment as I do not think we have seen the last of the rises this year, and with property prices as high as they are, and people strechted to the limit on there repayments it may not take much for the market to falter or even fall.

 

[leemason]

I have been looking for land for about 6-8 months now and in the South East it is extremely difficult to find anything in a decent area at any sort of reasonable price. MUch of the land that I have looked at needs decontamination, or is next to an industrial estate or a sewage works, etc. I have even looked for houses with some land at the side to build on but there are so many builders looking for this sort of thing that many properties never actually get to be marketed before they are sold.

To build even a small house you are looking at £200K-£250K minimum for the land in the South East and much more in some areas. Then you have the build which will probably cost (for a 3 bed house) £100K-£250K dependent on spec. However, you should expect to make about 25%-35% on such a development but you need to really commit to finding the land first.

The best policy is to find ALL of the Estate Agents in your selected area and keep calling them. They will not call you about land as they all have tame builders that they will give first refusal to...

 

[kmacadam]

Hi

If I can be of any help please email me. I am a mortgage broker and overseas property broker and can advise on finance and generic advice on where to buy.

Regards

Kevin

 

[RedSofa]

I Started developing last year (full time) and it soon became apparent that the competition out there is extremely intense. Finding the next project at the right price proved to be impossible.

The main reason is that people are paying too much for properties to develop (especially at auctions - they using go for market value or above!), and the real deals never come to market. I agree with lessmason to an extent about befriending your local estate agents, but even this way you are still getting the deals that the professional developers have discounted as not profitable enough.

The answer is to obtain off-market property, this is where small time developers can make the money. As a result of the experiences last year, I spent a great deal of time researching and setting up my property sourcing business.

This, for me, answers all of the problems I have encountered, as this way you actually beat the professional developers. Also provides a way of sourcing property for both my portfolio and also to develop and sell on, therefore marking the profit when the property is bought, not sold!

If you are serious about property, you need to be more savvy in today's highly competitive market to sustain long term profitability and success.

Property is not for the feint hearted, it is hard work, sometimes extremely frustrating and sometimes you will get it wrong.

I love it

 

[kmacadam]

Good valid comments redsofa.

Similarly a leaflet drop with the following will also usually reap benefits.

We should do business together Redsofa!


FACING REPOSSESSION?
NEED TO SELL QUICKLY?
Behind on payments?
Need to sell quickly?

WE BUY PROPERTY
Any area - Any condition considered

We can buy your property with:

Sell and rent back option (stay in your home)

Buy back with a discount option

Sell and move out to your timescale

No fees guaranteed

We can get you cash in 4 weeks

Call us NOW!

 

[RedSofa]

Where are you based kmacadam? Good to see another BMVer on this forum.

 

[GreatSEO]

Would love to try but too much of a minefield for me

Regards

Dave

 

[Spire]

Hi Redsofa

Just had a look at your website, I would be intrested to know if your scheme is working?, as it looks like the way to get hold of property at a reasonble price,

Do u get many takers?
How do you find potential sellers?

How u don't mind me asking, I will quite understand if you do not wish to post a reply.

Thanks

 

[RedSofa]

No i don't mind you asking.

The website was launched about 6 weeks ago, not good timing due to the Christmas period!

Up to now we have not done a deal as a direct result of the website, however there is a great deal of work to be done on the marketing side yet, which is what I am concentrating on at the moment.

As kmacadam also says, the direct leaflet is one of the BMV favourites, some traders would argue that a website is not necessary (with very sound reasoning). However I have my reasons for utilising the website as an addition to my marketing mix (this will benefit me more in the longer term).

If you are serious about BMV I suggest that you spend a good amount of time researching it first, then have a go, see what happens. There is a very good forum which is more relevant for this - singingpig.co.uk.

There are some serious traders on there, some have built up £multi-million portfolios in only a few years.

My interest in property goes much wider than just the BMV side, but this is where I will be concentrating my efforts for the immediate future. The RedSofa website will reflect this wider scope in the near future, but it is BMV based for now.

 

[Spire]

Okay thanks for your reply I am looking for way's to get into the property market on a buy and develop basis or buy and sell without any work would be even better.

I am not bothered about buy to let been doing that for about ten years and was looking for a new avenue of attack.

I will have a look on the other forum, thanks for the link

 

[kmacadam]

Where are you based kmacadam? Good to see another BMVer on this forum.

In Hessle, East Yorkshire, apologies for delay in responding I'd lost my logon details!

 

[RedEvo]

The one I did last year I bought at auction, then I knocked down 4 garden sheds, yes 4, he was a keen gardner the proir owner, tidy up the garden, then put it on the market I did nothing else at all to it, and made a handsome profit, given the amount of work I id on it.

Last year and this year are very different....

d

 

[RedSofa]

Last year and this year are very different....

d

Very true, very true indeed!

 

[Zeppman]

Don't get into developing unless you know what you're doing. Would I try jumping in as a Lawyer if I were not trainned in that field? Its not something to do unless you have spent years working in that field. My other gripe is no one ever talks in detail about the important things on the developer TV shows......such as conforming to latest electrical reg's. Why don't we see the important things that are hidden from view?

 

[steve.m]

very true Zeppman, but the gory details just aint sexy for TV shows.

 

[MH1]

There are a lot of amateur developers who started with little idea over the last 5-6 yrs who made good money, simply because of the rising market. The slow down around most of the country will hurt a lot of these people because up to now the market has forgiven their mistakes and cost over runs.

I will develop in the future but wish to have at least double the amount of money behind me than required before going ahead, to allow for my mistakes. As other posters have mentioned though, really hard but potentially very rewarding work.