Property Investment Advice can be all too freely given.
But the focus is always on how to what to do, or where to invest.
No one ever seems to give you advice on how to manage your development. Until now.
This articlue provides Property Investment advice that will help you to invest wisely, and out there.
But I think it’s important that you have all the bases covered.
This post does not give you advice on how to develop a property.
How To Manage a Property Development
The focus here is on how to apply management techniques and processes to your development.
It’s about how to apply proven process and rigour to give yourself the best chance of success.
For most of us, investing in property is a major financial commitment. If it all goes wrong, it can take years of hard work to recover financially.
So you need to do all you can to make sure that it does not go wrong.
All sounds pretty obvious so far, right?
But the question becomes, How exactly do you do that?
The Property Investment Advice included in this post consists of 5 simple steps.
If you master these steps, you’ll be able to deliver any development to time. budget and quality.
Making a profit will always be dependant on you finding someone to pay what you want.
Property Investment Advice 1 – Make a Good Investment
You need to do your homework up front and make sure you’re making a good investment that at least has a chance to generate the profits you want.
Know the area, the people that live there and the property itself.
Make sure any changes you make focus on the type of people that live there. Make sure you understand all of the costs of before you commit to anything
Don’t buy the most expensive house on the street, you are pretty unlikely (unless the market is really rampant) to sell on at a profit in the short term, no matter what you do to that property.
Buying at auction unseen is high risk – fine if the profit margins are big enough, but I would suggest only for the experienced!
It’s generally better to buy the worst house in a good street for as little as possible. The higher the price you pay, the more you have to sell for to make the same profit.
That way you have scope to improve and make profit.
Property Investment Advice 2 – Prepare Thoroughly
Whatever you intend to do with the property you purchase, make sure you plan it out thoroughly.
Understand who will do what, when and how long it will take.
Line up people and if appropriate, materials to do what you can to cut out delays.
Have a detailed understanding of your costs.
Give yourself some wiggle room, both in cost and time.
Things will never cost exactly what you expect, and it’s almost inevitable that some jobs will overrun.
Property Investment Advice 3 – Don’t Get Caught Off Guard
Things will go wrong, but the good news is that many of them are predictable. so be ready. Have plans in place.
Think about your risks (what can go wrong), and understand which ones matter most.
In general, that’s those that are both reasonably likely to happen, and will have a significant impact.
Do something about those risks.
- avoid them altogether (by doing something different instead, or doing things in a different order),
- mitigate them by having a recovery plan in place,
- manage them (it’s good practice to keep a closer eye on higher risk things anyway),
- transfer them to someone else (perhaps with an insurance policy).
And keep them under review, Adding new ones as you go.
If something unexpected happens, make sure you have a process to deal with it. Always make the best decision you can on the information available. Don’t let emotion get in the way!
If something changes, make sure you have a process to fully understand what that change means to:
- and be clear on the benefit it adds.
If a change doesn’t add value, don’t do it!
Property Investment Advice 4 – Manage the Work
If you’ve done the first three steps well, this is pretty straightforward.
You just need to keep an eye on your schedule, your costs and make sure everyone knows what they are supposed to do and when, and importantly that they have all they need to be able to do it!
Keep a watchful eye on the development. Communicate with the appropriae people at the appropriate times.
Be seen to be in charge. Make sure that if anything goes wrong, you get to know. Talk to people regularly, and be visible!
Property Investment Advice 5 – Know When You’ve Finished
This seems really obvious, but if you’re not clear in the beginning whatyou are aiming for, then you won’t know you’ve achieved it.
And if you don’t know you’ve achieved it, the temptation will be to carry on doing more.
And doing more costs more, which reduces profits.
So be clear on what good looks like, and stop as soon as you have achieved it!
If you would like more information on how you can manage your property development and maximise your chances of success, then please sign up for the FREE Property Development Mastery Training here