HBC™ Conveyancing - Being a Property Developer

Being A Property Developer

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing fees

Being a Property Developer

Being A Property Developer

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5 Golden Rules of Being a Property Developer

 

We will give you the rules, Then explain in detail and finally give you a number to call (well for those of you who are really serious)

 

  1. Specialist help can blow your profit.
  2. Knowing what to invest.
  3. Know the costs.
  4. Knowing when to sell.
  5. Timing.

 

1.Specialist Help!

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesConveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesWhen you have enough experience you can avoid this section. Gaining experience is very expensive. So who to trust? What is a reasonable charge for the advice. Why do they wish me to succeed? Generally surveyors, estate agents, IFA/Banks, specialist property evaluators and lawyers ALL make a living from you. Build loyalty, that way you have influence and commercial bargaining power. Estate Agents do the least and charge the most. They work for commission and usually organise other specialists (lawyers, surveyors etc.) for a ‘kick back’. Build your own relations, keep any advice you listen to from a truly independent source. Lets face it if the estate agent gives the surveyor or lawyer 10 clients a week who’s are they going to favour if the commercial pressure is on. Pushing you to buy, accept the conditions. Will your referred lawyers really play hard with the hand that feeds him/her?. You need someone to negotiate hard, shake the tree and save you thousands of pounds. That’s true specialist help!

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing fees

2.Knowing What To Invest

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesWhat’s your plan, rent, sell, reshape – revalue and sell or knock down and redevelop? Being a property developer, you can’t get emotional, don’t get sucked in by your own ego! There are many tricks, from fake buyers and over inflated values. Yet the worst and most dangerous is your own mind, your own ego. A skilled negotiator will analyse your pressure points, question you in such a way to make you feel good; feel successful. DANGER. Again having a truly independent voice in your ear can save you from overpaying, or buying into a property bomb. I know that you may think this wont happen but we can assure you that when you do this for a living agents make money from the unwary. Do your research, seek independent advice, don’t be rushed. Then you will know what to invest and if not, when to walk away. Hard ball!

3.Know the costs.

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesConveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesNow when we consider costs we are not just considering the costs for buying, tax, survey, bank charges etc. If your plan is to sell factor that in, similarly if its to redevelop alter from a 1 to 2 bedroom etc. factor it in. Huge money can be made but it can also be lost. If we highlight a painful thought for you its because we want to give you both sides; good and the hope it doesn’t happen considerations. It’s a business venture, many new property developers fall foul of cash flow issues, so be honest about the costs. Also remember capital gains tax and what is allowable/deductible. After you buy time not earning you money is a huge drain, especially if you are buying in an area where the capital value of the property is not so buoyant as it can be in some areas of London and Edinburgh. We may have said Aberdeen, but given the oil situation things have taken a FULL turnaround. A lesson for any property developer. Keep your eye on the market, keep your eye on the costs.

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing fees

4.Know when to sell.

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesAs stated above in the recent down turn in Aberdeen property knowing when to sell is critical. Offsetting any offer against the costs of hold on. Your estate agent is also paid commission when you sell so don’t be put under pressure by them, especially when the end of the month/quarter looms. Yet before the actual sale use all your skills to get a good price. It is not widely known but even the National chains can lower the commission they want from you (in some cases 20%). We have negotiated as much as 60% off local agent commissions for our clients. Remember 1) What is their stock level? 2) Would a ‘for sale’ board outside your door help their brand? 3) Would another Agents ‘for sale’ board outside your property damage their brand. There are endless things to consider when you start negotiating with any estate agent.

5.Timing

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing feesTiming is the final piece of having the knowledge. On route to gaining the experience and being a property developer, surrounding yourself with trusted advisors who add to what you do not just make a living from your venture. Keeping yourself in the loop and not letting your hopes or ego get in the way of making the right decision. In many cases the right decision may be hard to swallow, tough to deal with but if you are truly serious about making this work its the tough decisions that will make you succeed when others fail. Property investing is very akin to share dealing. Both can provide huge highs, massive profits but success is knowing when to hold and when to get out. Even at a loss! Being a property developer is not about one deal and as such releasing capital at a loss to make 10 times more in another venture? Timing is about knowledge of the market and experience of part markets.

For more information call the experts and find out what we advise or own developers. We are truly independent property specialists, property negotiators. Advisers to those who shape the property market.

Conveyancing Fees, Conveyancing Quotes, Property Legal Quotes, Conveyancing Fees to buy a property, Conveyancing fees to sell a property, Commercial conveyancing fees, residential conveyancing fees