Have you wondered how you could turn your passive property investments into a thriving, active portfolio?
Most property investors adopt a buy-and-hold approach, but some are looking to become more active and get involved in property renovations or small developments.
In today’s I’m chatting with Greg Hankinson, director of Metropole Constructions, a seasoned player in the construction industry, who has over a thousand property renovations and 300 homes to his credit.
Greg offers his insights into the world of property renovations and development and shares his expertise on adding value to investments, the potential risks, and the benefits of investing in property renovations.
Whether you're an experienced investor or just starting out, this episode will give you some insights into becoming a more active property investor.
Transforming passive investments into active success
In today’s discussion, Greg and I dive into the world of property renovations and development.
We discuss the nuances of the Buy, Renovate, Refinance, and Repeat (BRRR) strategy, the costs involved in renovation and land banking, and the potential returns one can expect from these investments.
We also touch on the importance of strategic planning, contingency plans, and the role of a competent team in successful property development.
- The complexities and rewards of actively investing in properties with Greg Hankinson, a seasoned expert in the construction industry.
- The options for investors who want to add value to a property.
- The benefits of getting involved in property development.
- Saving by buying under market value
- Selling for profit at the right stage of the property cycle
- The Buy, Renovate, Refinance, and Repeat (BRR) strategy - its nuances, costs, and potential returns.
- Realistic goal setting and understanding the risks involved in property renovation and development.
- How to look for a property with renovation potential.
- Strategic planning in property development, including financial planning and the right ownership structure.
- The stages of property development.
- Concept and refining the idea.
- Determining feasibility
- Negotiating the contract and making a formal commitment
- Design and planning
- Long-term hold and property management
- Potential pitfalls and challenges in property development, and the need for contingency plans and accurate feasibility studies.
- Considering easements, covenants, or overlays on the site
- Buying the wrong property
- Buying at the wrong time of the property cycle
- Holding costs
- Construction costs
- The role of professional property strategists in guiding investors through the labyrinth of property development.
With insights from a seasoned expert and practical advice on various aspects of property development, this episode equips you with the knowledge and understanding you need to successfully navigate the world of property investment and development.
Whether you're looking to transform passive investments into active ones or navigate the complexities of property renovations and development, this episode is a must-listen.
Links and Resources:
Get a bundle of eBooks and reports = www.PodcastBonus.com.au
Some of our favorite quotes from the show:
“Theoretically, if you do a structural renovation, you should add considerable value, but many people don't get that right.” – Michael Yardney
“A large part of the initial strategic planning is having the right finance plan, also having the right ownership structure plan, because that could make a difference and you can't change the ownership once you've signed a contract.” – Michael Yardney
“I know currently there are people saying build four townhouses, sell three, keep one at a significant discount. It doesn't work that way.” – Michael Yardney
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