Are you interested in getting involved in property renovations or development?
In today’s show I’m sharing an interview where Justin Gehde and I talk about how I got started in property renovations and development.
This is part of the summer series of my show, where, while I’m on vacation, I pull out some of my favourite past podcasts not previously shared on this show.
So today there are some great hints for you because I discuss many of the lessons I learned and some of the things that I got wrong along the way.
How Michael Got Started With Property Development
- Michael bought his first investment property in the 1970s. He paid (a half share of) $18,000 for it and was got $12 a week rent.
- His second property needed a renovation. He got involved in development in the 1980s. He had good partners and mentors that helped him until the recession hit.
- Then he started helping others in the late 1990s helping people with property development management and doing development for clients.
- Michael is still very actively involved in property development. He enjoys creativity and finding solutions for problems.
- He takes pride in his large developments that have changed the face of some suburbs.
- Michael thinks property development is the best way to use money and buy assets cheaply. He doesn’t flip, instead he renovates and holds on for the long term.
- In the 1980s Michael was very brave and maybe a little stupid, but he took some big risks and the rising market got him through
- He has learned from mentors and he has seen partners go bankrupt and he is a much more careful investor.
- A common problem Michael encounters with clients is they have unrealistic expectations.
- His advice is to start small do the renovation and then move up.
- The importance of finding investment grade properties in suburbs that outperform the averages and where the jobs are and where people have more disposable income.
- How today Michael conducts the orchestra and still has fun at work and undertaking property development.
- Michael still enjoys the marketing, research, recording the podcast, dealing with the media, and strategic actions.
- Michael and his property development management business became experts in certain municipalities, so they know what does and doesn’t work.
- How experience makes a difference in property developments and creating the type of property that tenants want and what the end product should be.
- Location, owner occupier appeal, demand for a wide demographic of people who want to rent or buy there. Investment grade property.
- If starting over again, Michael would educate himself more and learn from people who have already done what he wants to do.
- Rather than flipping, property developers should be adding value, refinancing and keeping their properties. This way they are much more likely to become wealthy.
Links and resources:
- Michael Yardney
- Metropole’s property development services
- Rich Habits Poor Habits
- Property Update App
- Property Developer Podcast
Our favourite show quotes:
“Property investment and development is a game of finance and having the right cash flow.” Michael Yardney
“You have to have money set aside for a rainy day because the finance markets can turn very quickly.” Michael Yardney
“I’m actually having fun sitting back a bit and enjoying the results.” Michael Yardney
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