Property Development

[ImYourMan]

I have no mortage at the moment, and I only work 20 hours a week. I would love to do property development, but is £400,000 a bit to ambitous for a first project, and I proberbly wouldn't even be able to get the funds from the bank.

I have my eye on a property, that has huge amounts of potential, but I would need another £50,000 on top of the £400,000 of the house.

Is this possible, would an investor be interested in anything like this?

 

[sanjiv]

Don't think it would work out. Someone who is an investor is likely to have made money from property anyway so why would they not just do it themselves and get all the money back? Also because you are a first timer, you would end up spending more and perhaps not know what is the best quality product. Also when it comes to selling/renting, you may not be as good furnishing the property cheaply and also making it look good. Even if the investor has not done property before, they would just do it themselves if they had the money because they would get all the returns and the property may well turn out the same or better (because they are more likely to have contacts in the field).

Also for a first project, I would say £400k for the area I am in is excessive. Where abouts are you located?

 

[harry munker]

Go for it and let your dreams become a reality

 

[Esk247]

hmm £400k sounds over the top for me..that would be a total build and finish price, i dont see you having much of a reserve fund for unforeseen problems.

there are properties in other areas available for around £100,000 that need around £50,000 spending with a gross return of £180,000 giving you a max of 30k net profit! <<< thats not including any loan interest and such!

thats more like the type of project you should take on

 

[MASSEY]

Take on a property that size and be prepared to be skint for years when it all goes wrong,

Ideally you want to start on smaller projcets.

This is where property development becomes hard for people. If you have no skills and have to pay people then you need to buy more expensive houses to squeeze a profit and by doing so you alienate yourself from a large portion of buyers.

If you are handy and have a trade for a first time you want to be looking at 70k houses and tart them uo for a quick turn around.

 

[QuickHomeBuyers]

If nothing then I presume you can live in it yourself. Always see the brighter side.

 

[An Oasis]

Is this possible, would an investor be interested in anything like this?

Are you actually monitoring the property markets? If so, which country do you see offering a positive ROI?

And no...working as you are, with nothing to back you and no experience you'd be more likely to get backing to enter the worlds hula hoop competition.

 

[Lee Jones Jnr]

You will not get investment as you have absolutely nothing to offer.
There is money to be made in property but at this stage you are not in a position to do so, unless of course you have neglected to mention a history of successful property flipping.

 

[sanjiv]

To be honest you can only really make money right now when someone is looking for a quick sale and you have the cash so you get it for a bit lower than market value and if it needs a spruce up.

 

[tomkin]

just adding on to the discussion, how do you actually go and hunt for bargains ? I assume competition (from buyers) is always tough in areas like London.

iamyourman, dont worry if you have not enough funds for this one, another one, more manageable is around the corner, if you are really keen.

 

[Billmccallum]

I have no mortage at the moment, and I only work 20 hours a week. I would love to do property development, but is £400,000 a bit to ambitous for a first project, and I proberbly wouldn't even be able to get the funds from the bank.

I have my eye on a property, that has huge amounts of potential, but I would need another £50,000 on top of the £400,000 of the house.

Is this possible, would an investor be interested in anything like this?

Much depends on...

(a) the nature of the project
(b) your level of skills
(c) your financial contribution
(d) your knowledge of building trades
(e) your business planning skills
(f) your knowledge of the property market in the area
(g) your access to funding providers

I know where to buy dozens of properties for less than £50K, but that does not mean there would be a profit in dealing at this level.

Buying at £400K and spending another £50K on improvements does not mean a profit can be made, it depends on a number of variables.

I have some experience in this field and would be happy to offer some advice.

Bill

 

[jeffbearcroft]

Successful property development requires either lots of direct experience or a lot of luck. It sounds easy to make money from property development but you can lose a lot of money too if you don't get it right.

If you don't have property development experience already, I would advise you to be very, very careful before making any financial commitments....

I have no mortage at the moment, and I only work 20 hours a week. I would love to do property development, but is £400,000 a bit to ambitous for a first project, and I proberbly wouldn't even be able to get the funds from the bank.

I have my eye on a property, that has huge amounts of potential, but I would need another £50,000 on top of the £400,000 of the house.

Is this possible, would an investor be interested in anything like this?

 

[vvaannmmaann]

Why not try a smaller and cheaper project to start with? That way,your mistakes will be less expensive and painful.

From this site.There are several other similar threads for you.
http://www.ukbusinessforums.co.uk/f...=153098&highlight=property+development&page=2