Hey all.

[Dean Howell]

Hi all. My names Dean. I'm new to this forum and property as a whole.

I've joined this forum because I wish to embark on a property development career. I'm starting right at the bottom and taking baby steps. The whole idea is quite daunting but sometimes you have to just go for it right?

My main reason to start is I have a young family ( daughter aged 10 weeks ) and I want to do the best I can for us. Im a carpenter by trade and thought this could be a great way to use my building knowledge.

I will be asking plenty of questions so pulse bear with me. As I said before I'm taking baby steps. I still have to raise my first deposit for a buy-to-let or a buy-to-sell.

So Hi once again speak soon.
Dean

 

[Veronica]

Hi,
Have you looked at property auctions?
As a carpenter you are probably capable of doing up an old property with a view to making a good profit by reselling. Many people have built up large portfolios by starting this way.

Regards
Veronica

 

[Dean Howell]

I haven't been to any yet. But auctions are definitely a route I will look into. At the moment I'm trying to get together some finance. Would a business loan be a way of getting a deposit? Any thoughts welcome I'm keen to learn.

Thanks.
Dean

 

[Veronica]

I believe you can get buy to let mortgages. I don't know how much deposit you need though.

 

[totallyproperty]

Hi Dean

I wonder if you might be better finding a partner in the short term - maybe someone who can provide the finance while you provide skills which they do not possess?

This could be a less risky way of making your first baby steps in the industry?

Regards,

Mark

 

[Veronica]

Hi Dean

I wonder if you might be better finding a partner in the short term - maybe someone who can provide the finance while you provide skills which they do not possess?

This could be a less risky way of making your first baby steps in the industry?

Regards,

Mark

That seems like very sound advice to me, especially if Dean has not got a good deposit himself.

 

[Dean Howell]

That does sound good. The only worry I would have is getting a fair share of any profit. Unless that's something I could put in a contract. Definitely food for thought though.

Great advice guys cheers.

 

[totallyproperty]

Hi Dean

Protecting your share of profits is also a tricky one because friends and business don't always mix and friends and strangers carry some risks as well. A referral from a friend or someone in the industry might be a good starting point BUT ensure that everything is down in writing to cover your back and ensure you get your share of the profit.

While it will vary from project to project if I was putting the finance in I would probably want a bigger share of the initial profit due to the financial risk I was taking on. However, as I say this may vary for a number of reasons.

Regards,


Mark

 

[zh90045]

Good start to renovate house

Hi Dean

I met a guy in Bali (Indonesia) and he told me he started off by working as tradesman, renovating houses for people in London. After some time, he realised that the houses and flats in London were in huge demand that timing was important.

People like to have newly renovated flat or house and they are willing to pay a premium for it. So he started to look for old mew houses which are run down and started to renovate them. After the renovation, the house could fetch very good profit and later he became a good buyer for old houses and now enjoy the fruit of it - he does not need to do the renovation himself, he owns a company and employ a few persons to do the job. He is in charge of buying and selling the houses. However, to cover his expenses, he still own a few houses and rent them out for income.

Do you think this is also possible for you? Wish you all the best.

 

[angelina jolie]

Hi
I am new and join this forum.I will built my career by Real Estate business.

 

[KGeeson]

Hi Dean,

sounds like an exciting venture you are about to start! Luckily there is a wealth of information you can research on the internet to help you get started. I have worked in property investment for about 3 years now, but my father has been a builder for over 30 years and has developed a few properties in his time so I've seen investments work from both an investor and a developer perspective.

My advice would be to consider the following:
- With any property you buy, it's vital to research the market thoroughly and be clear about who your end buyer / tenant would be. This will effect any changes you make to the layout and quality finish of the property.
- You will almost always have unforeseen challenges that crop up, causing a delay in either the purchase, development or sale, so make sure you allow for time and money contingencies.
- Auctions are a great place to buy, but are very competitive. make sure you have calculated the maximum bid you are prepared to go to before the auction, and stick to it!
- Calculate the potential Yield and ROI before buying a property. A good yield is considered to be 7% and above, with a good ROI 10% and above.
- Register with estate agents in the areas you are considering buying in. They may be able to put older properties your way before hitting the open market.
- If you do get an investor on board, it would put you in a very strong position to be a cash buyer. You would need to calculate the return you could offer an investor, based on the value you believe you will add to the refurbished property.

Hopefully those points are of help to you! Feel free to ask me anything else and I will advise if I can.

Best,

Kelly

 

[totallyproperty]

Hi Kelly

They are very sound and very useful points you make.

One additional thing I would say, nobody can be an expert in every field. If you need help or advice out of your fields of expertise make sure you pay for good advice - it will more than pay for itself in the long run. Those who cut corners when investing in property always get found out in the end.

Regards,


Mark

 

[JadenS91]

Start with auctions

My dad was in a similar situation to you when he got into this business (he was new to property development but had experience in building etc) he started off by buying properties at auction sites and re-developing them with his small team of three. he ended up doing quite well through this so hopefully if you follow a similar path you could too. Also auctions really are a great place to get started