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Finance is a key plank of any project and getting it right is crucial to the viability and longevity of your property developing business. How to structure deals, ways to arrange your financing and leveraging your capital and equity to maximum effect, are key to taking your developing to the next level.

So I speak with Matthew Royal from Development Finance Partners, a firm that works with developers to get their project funding sorted out. We cover a fair bit of ground in this discussion including how you can set yourself up to have a pipeline of projects to enable your business to grow, how bank’s assess risk and how you can take advantage of the opportunities that present themselves in any market.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site. The training includes a bonus program called Taking It To The Next Level for people who may want to go into developing full-time, along with another bonus course called Raising Capital which covers how to raise money for your projects.

So head over to propertydevelopertraining.com and take a look… I would love to see you on the inside…

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

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Tips for real estate developers

Here’s a couple of points from our conversation that really stood out for me:

1. Set your own goals not the banks

This was a great point that Matthew made. Make sure you are getting advice from people who will help you achieve the goals and aspirations that you want, rather than a bank that is going to have different desired outcomes, probably far less than what you want. So talk with people who can develop a strategy about how you get to where you want to go, without going bust, and work with you to achieve it. I always think it is better to have good people on your team, with the right skills and mindset, who are more experienced than you, providing you are steering everyone along to where you want to go, as they will be able to overcome obstacles and help you realise your dreams.

2. Have you mapped out a future pipeline of projects

Have you sat down and worked out where you want to get to? How many projects do you want to do? What size? Where? By putting down on paper a plan, it will help you map out how you can get there, work through cycles and demonstrate to lenders and investors that you are serious about delivery. Also, if people know what you want to achieve, they can work out what needs to be done to help you

3. Consider and mitigate your risk

Matthew mentioned how lenders favourably view developers who put forward plans and proposals that thoughtfully consider risks and put in place measures to mitigate them. It’s all too easy to think your project is sound, your market is rock solid and your risk of failure is low, but complacency often leads to disaster, so spend some time articulating the risks facing your project and identify the things you can do to prevent or minimise them.

Alright, there’s another show almost done. Don’t forget you can find me on Instagram at https://www.instagram.com/property_developer_podcast/ for all my development videos and property porn pics.

Links

Development Finance Partners – http://www.dfpartners.com.au

Article written by Matthew Royal about bankers – What your banker will never tell you… – http://www.dfpartners.com.au/what-your-banker-will-never-tell-you/

Justin’s Project Video

Latest project video showing driveway being laid.