5 Secrets of Good Property Development

There is a shaky property market out there.  With greater demand for good value property.  In my experience the irony is there really isn’t any secret to good property development.  In fact, it’s common sense.

One. know the bottom line. Any property development has got to be worthwhile doing. There has to be a return on investment. For me this has to be a minimum of 20% profits on cost.

Two. Don’t bet the house. Never ever sign over your life. Never give personal guarantees. No deal is worth all of you. Don’t put all your money into one scheme. If it turns out to be a make or break situation you will have to face dire consequences if the deal breaks down.

Three. Trust your gut. I have to have a feel for a deal. Surprise surprise – if it feels right, it will work. If it doesn’t feel right, it’s no deal.

Four. Location, location, location. It’s an old adage. It’s clichéd. We have heard it so many times before. If the truth be told, prime will sell.

And finally, five. Peripheral locations. In other words, secondary sites. Here you might be lucky to find something and develop it and do well.  But they are the opportunities that fail first in a shaky market. And the market today is a shaky one. Be careful, a lot of people are getting away with peripheral sites because of lack of stock.

Brownfield sites are King

Brownfield land means town or city centre. It is well located.  So it’s perfect. Because of their location it has a multiplicity of uses. Jansons have bought brownfield land as a retail scheme, which could be a food store, residential or a hotel. You have options.

The very nature of brownfield land means there is a lack of supply. 

There is so much pressure on housing, and local authorities are realising land for residential housing and nothing else. Not industrial development. So generally, there is a lack of supply.

Brownfield land quite often has issues. It may have problems with contamination. Unused, existing buildings on it. Having existing buildings on land may put a lot of people off. There is value in problems.

Existing buildings. 

There is value in existing buildings. Many times, I have kept the existing building on the land, not demolishing it, while going through planning applications. There may well be investors and occupiers who will want to use the buildings. So, there is money to be made from potentially allowing the right people to buy the building.

Use these principles as a guide. 

They will serve you well and help you make the most of brownfield land.

You Can Do It – in  business or anything in life…

YOU CAN DO IT. Most people think this is a cliché, however, if you put your mind to it you can do it, irrespective of circumstances, financial capability or any other reasons that you find, not to do it.

When I was young I always believed that people in business had some magic skill that I didn’t have.  There was just something about them that just wasn’t in me.

This belief started when I was at school. Some kids where just better at school than me. Coming from a very humble background with parents who were immigrants. I noticed I wasn’t like everyone else. I grew up with a shyness…an insecurity. Maybe it was because I was different? Or at least I felt different.

This led to failing at school year on year. But there was always a determination. Always saying to myself YOU CAN DO IT.

I went back to school often. Probably to prove myself. Or maybe to prove to others. My father. Finally, I got to college.

And in my last year I graduated with distinction. This was the change, I realised YOU CAN DO IT.

You’ve got big ideas and want to make big money

Have you got an idea? Do you want to the life you know you ought to have? This life. This thing we call success. It all boils down to 5 simple attributes. Things you have in your power. In your control.

One. Confidence in your own ability. You know you’ve been there. You’ve done it. You’ve worked for others. You’ve helped them get to where they are now. YOU CAN DO IT for yourself.

Two. Preparation. Know the business you are going into and if you have a niche capitalise on it.

Three. Be different. The industry wants difference. Sometimes it doesn’t realise it. The industry appreciates difference. You’re not part of the herd. Be different.

Four. Perseverance. Things will go wrong. You will learn from things going wrong, if you listen. You will take a short-term view. But remember don’t let day-to-day situations pull you down. They are over-come-able. Be positive. Stay ahead. And keep your eye focused on your overall goal, where you are heading.

Five. Scale. Think about scalability. Is my idea capable of becoming big? I have always lived my life on the basis that there is no point being another consultant. No point being another Joe Bloggs. The ONLY point in stating up your own business is because you have big ideas – and want to make big money. You want the life you know you ought to have.

You’ve got big ideas? You can make big money.