Strata Property Development without using your own money is something that every apartment owner dreams about but very few achieve this feat. The key is knowing how to engage all the other owners and how to unlock the potential of the building by selling off the development rights of the common areas.
The rest can easily be financed with strata loans. The strata loans are easy to apply for with no security and cheaper than most business loans. The loan only takes an hour to approve and the funds can be used immediately. The fund needed to develop the building in the roof space, with additional levels, top floor penthouses, redundant stairwells, and common gardens and garages. All of these can be sold to an individual owner or third party.
Opportunities don't happen. You create them.
The Three Ingredients of Strata Property Development are:
The building is made of individuals with their own lives, stresses, needs and wants out of the development. Everyone should get the same portion out of the profits. You need to make sure that your neighbours know each other, trust each other and like each enough to work together.
Now I know that most of us will have no problems with either of the three. We all have friends and family, who know us, like and trust us. However, when it comes to someone trusting you with their life's savings and hard-earned money, it becomes a business decision. TRUST splits into further two parts. Trust is made of two things, character, and competence. Most people will tick the character part, but do they believe that anyone owner has the competence to execute the development? Do they think that they have the necessary skills, experience & tools to source, stack, structure and execute a property development project?
Strata property development without using the owners hard-earnt capital requires many skills and a complete understanding of all moving parts of property development. From project management, town planning, consultant sourcing and acquisition of reports, financial feasibilities, financial structuring and managing the development and most importantly … do they have the time.
To become a Strata development project manager, you MUST understand the in's and outs of property development.
It comes with a moral burden and a ton of responsibility and fear. Not fear of losing your money, but if you are a developer with integrity, you should feel personally responsible for other people's money & also fear for their money. Because if things go wrong, although you will not lose any of your own money, you will lose your credibility forever. Personally, I would rather lose money than lose my name, even if it is just once.
Have questions about development project financing?
If you would like to explore the possibility, contact Warren Livesey for an obligation-free chat on 0415 254 420 or warren@buyairspace.com.au. Warren can assist with everything from design to construction, using his vast knowledge and 20+ years of experience. #buyairspace