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Getting your legal foundation properly set up enables you to protect your projects and ensure they have the best chance of succeeding. So we are talking all things legal when it comes to property developing with property legal eagle Lewis O’Brien.

It feels like a lot has happened since the last episode. Market sentiment and momentum has noticeably picked up across Melbourne and it seems in other cities too. Property values have been steadily rising and confidence is returning to the property sector. Which is great news for property developers. A lot of the doom and gloom news stories have dried up and we seem to be at the start of a new growth cycle.

An incredible amount has happened since we last spoke. We finally received a planning permit for our project that has been drifting through planning for two years. It was great to finally get that stamped letter and we can move on to the documentation and sales phase. And the timing might work well as the market shifts gears.

On my other project we have settled on a funding solution and have received a term sheet from a financier so we are working through all the requirements of that. The valuation report is almost complete and then we will get the Quantity Surveyors report knocked over once we finalize some details with the builder. So it is all happening on that project too. It feels like more has happened in the past six weeks than most of the past 12 months, so it is nice to have a sense of momentum with the projects.

And speaking of momentum, if you want to get some momentum going with your plans to start property developing, then remember we have the mentoring program that is available to teach you everything you need to know to become a successful developer. Email me on Justin@propertydeveloperpodcast.com for further details.

“It’s easy to enter into a contract worth half a million dollars, so it’s worth getting some advice about how to make it better.” Lewis O’Brien property lawyer

Okay, on to today’s guest, our first legal discussion with property lawyer Lewis O’Brien. Lewis specializes in property and commercial law, with a particular interest in serving property developers and investors. With more than 20 years of experience, Lewis has seen plenty of contracts across his desk and also the sticky situations some people find themselves in when property deals go wrong.

We have a fairly broad conversation covering such topics as covenants, options, joint ventures, contracts and the common pitfalls that you should look out for. During the discussion Lewis refers to some useful resources that he has available on his website and I will provide the access code for those following our chat.

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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Lessons for real estate developers

If you are interested in any of Lewis’ online guides and resources that are available on his website, you can use the code PropDev15 to get 15% off the asking price… now I have had a look through the guides and there is some great stuff in them. Lots of questions that you need to answer before you enter any agreement. So head over to www.lewisobrien.com.au for more information

Here are three things I took out of my conversation with Lewis:

1. Get good legal advice upfront before you enter into any property contract

Throughout any development project you will be entering into many contracts and most of them are pretty important so I think it is crucial to get good legal advice before you enter into anything that might curtail what you want to achieve. A small one liner in a contract might be the difference between success and failure, and it might be something that reads innocuously to you and me. Like all good consultants they’re advice should save you money in the long run, so make sure you have yourself a good property lawyer.

2. Make sure your property contract is tailored to the purpose

As Lewis mentioned, you are going to enter into a few contract through the life of a project and you want to make sure that each one is fit for purpose and protects your interests. The big ones are initial sales contract for the site, consultant contracts, finance offers, off the plan contracts and of course the building contract. As the leader of the project, you have the ability to shape the contracts that get used, so be sure to get your legal team to ensure the contracts you sign are not going to bite you later.

3. Allow sufficient budget in your property development feasibility to cover decent legal advice

I often hear of people trying to scrimp on the consultant costs they pay and sure you shouldn’t just pay whatever you get presented with, but I would advise to allow sufficient budget for your key consultants like the lawyer, as good advice upfront can save lots of pain later, and it can also provide peace of mind to you that key things are covered off. I look at it as project insurance and a risk mitigation measure.

Now speaking of contracts and entering deals, you might want to go back and listen to my discussion with ex-FBI hostage negotiator Chris Voss in episode 33, Chris provided some excellent tips on how you can generate amazing results. My chat with Chris is still one of my favorites some go back and take a listen to episode 33, and I highly recommend his book Never Split the Difference.

Okay, remember if you are interested in learning how to develop property then drop me an email justin@propertydeveloperpodcast.com

Don’t forget to catch me on Insta [https://www.instagram.com/property_developer_podcast/] and Facebook [https://www.facebook.com/propertydeveloperpodcast] for all my latest project pics and videos, industry news and other fun tidbits. You can also post a comment on iTunes if you are enjoying the show.

So, until next time may all your contracts be water tight and protective of your interests.

Links

Lewis O’Brien & Associates – https://www.lewisobrien.com.au