Roadmap to Your First 6-Figure Cheque in Property Development

The year is about to end. 

Just like last year, many people made a New Year's resolution in January 2024. Just like every year, most of them forgot about it by February.

But it is not too late now. If you start today, you can set yourself up for success in 2025. 

Instead of waiting for the new year to get motivated and make a plan to act, you can start building the right habits from today and keep the momentum going in 2025.

This way you are much more likely to succeed in property development and fulfill all your dreams.

Picture this: A year from now, you’ve leapt into property development, and your first project was a massive success.

The six-figure profit cheque you just deposited into your bank account means you can pay off lingering debts, provide your family with the financial security you always dreamed of, and even take a much-needed vacation.

Maybe you’ll finally get around to upgrading your home, or perhaps you’ll invest in your children’s education fund.

Every goal that once felt like a distant “someday” is now within reach.

That’s what’s possible with a smart property development plan. But, as with any big goal, you need a roadmap to guide you.

With careful planning, commitment, and the right strategy, you can set yourself up for success in property development and turn those dreams into reality.

In this blog, we will cover all the steps you need to take to go from zero knowledge and experience to your very first property deal just like many of my students.

Let’s dive into the steps to make it happen.

Step 1: Define Your Financial and Lifestyle Goals

The first step to any successful venture is knowing exactly what you aim for. Setting a clear intention helps you stay on track and ensures you’re moving toward your dreams, not someone else’s.

That means you have to define how much money you want from your first property deal. Are you aiming for six figures in profit from your first project? Would a $100K profit help clear your debts, or are you aiming even higher for future investments?

Now that you are clear on how much money you want, you need to decide the time frame. Usually, our projects take 12 to 18 months to complete. Some very small-scale properties can be finished in 6 to 12 months. 

Lastly, you need to be very clear on your why. You need to know how much money is enough, or you will end up in the rat race of property development. You will build more properties for the sake of building more properties. So make sure you decide an end goal for yourself. Whether it’s to gain financial independence, provide for your family, or have more time for what you love… it is up to you.

Remember, having an end goal does not mean you have to stop working after that. If you love the process, you can continue to do it for as long as you like. If not, you have already achieved your goals and can stop working. That is the whole point of property development: to get you to a point where you can choose when you want to work, where you want to work and if you want to work at all. 

Step 2: Educate Yourself

Property development is a powerful wealth-building tool requiring knowledge and expertise. Before diving in, learn the ropes and understand the industry’s key principles.

The road to property development is full of pitfalls if you don’t know what you are doing. There are problems like 

❌ Not doing the feasibility properly 

❌ Not navigating the zoning laws

❌ Hiring bad contractors who don't finish on time

❌ Running out of cash

❌ Not being able to sell the property at the price you want 

And many others. 

That is why you need to get a mentor who has been there and done that. A good education in property development can fast-track your journey and help you avoid costly mistakes. 

Once you have learnt the fundamentals of property development, you need to start doing your research. Look into which areas are growing, what types of properties are in demand, and how you can tap into those trends.

You need to look for locations where the population is growing rapidly, the government has land infrastructure, and new employment hubs are opening up and are close to amenities. These locations are called “Deal Belts”. Once you find a good location, start thinking about your future buyers. If you want to build a property for a family of 4, build the home with their requirements in mind. If you are building a retirement home for people with an empty nest, plan your home according to that.

Lastly, you need to learn how to get the funds for your project. You can do joint ventures. You can also raise money from private money partners. You can also take out the equity from your own home to get started.

Step 3: Choose the Right Strategy

There are multiple ways to approach property development; choosing the right one is key to maximising your profits and reducing risk.

Whether it’s renovations, subdivisions, or new builds, select a strategy that aligns with your goals and resources. As we said before, you need to know how much profit you want, how soon you want it and which projects will help you accomplish these goals.

Lastly, you need to prepare your exit strategy. Highly successful people start with an end in mind. Here are four exit strategies to consider:

1. Off-the-Plan Sales

Sell the property before construction even begins, with a deposit upfront. This locks in a sale price early, secures a buyer, and reduces exposure to future market fluctuations.

2. Sell Upon Completion

Wait to sell until the property is fully developed, which can often attract higher prices. This strategy leverages the completed look and feel of the property to fetch a premium price, though it does require holding the property until completion.

3. Rent-to-Hold Strategy

Hold onto the developed property and rent it out to generate a steady cash flow. This creates long-term income and allows you to build equity, with the option to sell later if market conditions are favourable.

4. Joint Ventures or Partnerships

Selling part of the development to partners or investors. This allows you to reduce upfront financial risk and share profits while maintaining a stake in the project’s potential upside. It’s a flexible approach, particularly if you want to limit exposure or bring in additional capital.

Each strategy offers different benefits depending on your goals, cash flow needs, and risk tolerance. Using one or a mix of these strategies allows you to optimize returns and minimize risk across different market conditions.

Step 4: Conduct Feasibility Checks

This is a crucial step that can save you from unexpected expenses and setbacks down the line. Feasibility checks are all about assessing the potential of the project. It means calculating how much it will cost to develop a property in that area, how much the property will sell for and which problems can arise down the line that can increase your spending. 

Let us look at them one by one.

Here’s a breakdown of these topics in a way that’s simple and easy to understand:

1. Assess Site Potential

Before starting any property project, you need to check if the land or site has the potential to make money. 

For example, you need to look at zoning. Zoning rules decide what you’re allowed to build on a property. Some places are zoned for houses, while others might only allow apartments, shops, or factories. 

You also need to look at the infrastructure. This means things like roads, water, electricity, and internet access. Good infrastructure makes a property more valuable because it’s easier to live or work there.

Lastly, you need to look at the growth potential. When an area is growing, more people will want to live or work there, which drives up property values. 

2. Calculate Costs and Profits

Before diving in, figure out all the costs involved in the project. Here’s a break down of some of the costs:

• Acquisition: This is the cost of buying the property. This first cost can be huge, so it’s important to know exactly what you’re paying.

• Development: This includes the price of building on the property. Think about materials, labour, and any equipment needed to get the job done.

• Permits: Most building projects require permits or approvals from the city or council. These can come with fees and can take time, so it’s good to add them to your budget.

• Marketing: If you’re planning to sell or rent out the property, you’ll need to let people know it’s available. Marketing costs could include ads, photos, or paying an agent to find buyers.

Subtract the total cost from what you expect to make (your sales or capital value). If the result isn’t what you’re hoping for or doesn’t meet your profit goals, it might be best to walk away. This way, you avoid getting stuck in a project that won’t pay off in the end.

3. Plan for the Unexpected

In property development, things don’t always go as planned. Prices can change, and unexpected problems can come up. 

That's why you need to create a buffer, which is extra money set aside for emergencies. This could cover unexpected costs like a rise in material prices, repairs you didn’t see coming, or paying for extra help if the project takes longer than expected.

Prices for building materials like wood, steel, and concrete can change due to shortages or other factors. Your buffer helps cover any extra costs if prices go up. Not to mention, construction projects don’t always finish on time. Bad weather, equipment problems, or waiting for permits can cause delays. 

Feasibility checks help you avoid bad deals and save you headaches down the road. 

Step 4: Build Your A-Team

Now that you have all the research data and feasibility checks that make sure your property will be profitable, it is time to get on the ground and start the work. 

Don't worry. The great thing about property development is that you just have to build a team that can do the hard work. It is all about having reliable experts on your side who can finish the project in a given time. 

You need architects who can design a great plan for your project. You need consultants who can advise you on things like zoning, property laws, permits and land checks. You need builders who can build the project. Lastly, you need marketing experts who can help you sell the project and cash your cheque. 

You can find these people by reaching out to your network. Once you build the team, you can monitor the progress from your home. Now, you can go to your job and spend the rest of the time with your kids while the experts take care of everything for you.

Step 5: Create Your 12-Month Plan

Once you’ve laid the groundwork, it’s time to map out a 12-month plan with specific milestones. This step will keep you focused, help you track progress, and ensure you’re working toward your goal.

Break down your big goals into smaller, manageable steps that you can tackle each month. This milestone will help you keep your contractors in check, monitor the progress and take necessary steps if and when required. It will make sure that you finish the project on time and sell the property at the time wanted.

Make sure you celebrate each milestone to keep yourself motivated and maintain the momentum.

By following these steps, you’re setting yourself up for income from property development, potentially in less than a year. Imagine the life that could await you: mortgage-free, financially free, and finally able to spend your time doing what matters most.

Let our Success Coach help you work out if this strategy is right for you. Click here to book your first FREE Action Takers Success Call with us!

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