{"id":22429,"date":"2018-09-21T01:00:06","date_gmt":"2018-09-20T15:00:06","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=22429"},"modified":"2018-09-21T01:00:06","modified_gmt":"2018-09-20T15:00:06","slug":"1-2-3-property-profit","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/1-2-3-property-profit\/","title":{"rendered":"1-2-3 Property Profit"},"content":{"rendered":"Bob Andersen is a passionate pioneer in the world of property development education. A self-made property developer with three decades of experience, Andersen has seen firsthand how property development projects generate the fastest and most rewarding profits in \u00a0real estate.
\nAnd he knows even brand-new investors can be property developers. The idea that development projects are only for the bigwigs in property is just a myth, Andersen says.<\/p>\n
\u201cMost people wouldn\u2019t baulk at the idea of doing\u00a0a renovation, but the term \u2018property development\u2019 really spooks them,\u201d he says.<\/p>\n
\u201cThey think it\u2019s big-time, that you\u2019ve got to have a lot of money and that the risk is too high. I\u2019m showing people that the average person can do a development and do it well, because it\u2019s all about following a system rather than having big money and lots of knowledge and experience, because you really don\u2019t need any of those things.<\/p>\n
\u201cThere is risk in any kind of property venture, because wherever there is a big return, there is risk, but I show people how to mitigate it. It\u2019s really no different to any kind of property purchase. The biggest risk in property development is simply not investing in your own education first.\u201d<\/p>\n
Having been involved in more than $1bn worth of development projects in his career, Andersen knows full well that developments are a powerful vehicle for quick portfolio-building and speedy cash income. The biggest advantage for investors, he says, is purchasing at raw cost rather than paying full retail price for properties.<\/p>\n
\u201cYou\u2019re creating properties 20% below market value, and that essentially means your profit is your deposit that you leave in there if you choose to keep your assets,\u201d he explains.<\/p>\n
\u201cYou don\u2019t have to wait for the market to keep rising to harvest equity over a long period of time \u2013 you can get straight into your next project. The end result is that you can either build a large portfolio very quickly, or replace your full-time job with a part-time job as a developer that\u2019s making you several times more than you used to make. That\u2019s why people are doing it.\u201d<\/p>\n
Andersen adds that development projects can be started with little or no money, and he offers a variety of strategies to help those with very little in the bank.<\/p>\n
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Small, medium and large developments are so accessible that Andersen has taught students as young as 17 and as young-at-heart as 70. Savvy parents are including their high-school children in their education in the same way Andersen himself teamed up with his 23-year-old son, Luke, in 2006; together, they wrote their \ufb01rst book on property development, Residential Real Estate Development: A Practical Guide for Beginners to Experts. The bestselling book became a serious tool for investors at a time when credible education on development strategies didn\u2019t exist.<\/p>\n
And there is no question that Andersen knows what he\u2019s talking about. Reconsidering his future as a young man after a car accident, he jumped into real estate, quickly moved to property development and then founded his own property development consultancy firm, Positive Property Strategies. With more than three decades of industry experience under his belt, Andersen\u2019s mission is to teach the system he has used successfully for decades.<\/p>\n
\u201cAt the end of the day, property development is about two skills: coordinating a process and coordinating people,\u201d he says.
\n\u201cYou don\u2019t need to have skills or prior experience. Rely on other people to have the skills \u2013 your architect, your builder, your real estate agents; they have the years of experience that you don\u2019t need to have. All you need to do is follow the system and utilise the skills of those people in your team.\u201d<\/p>\n
The system is composed of six steps; in its simplest form, it involves looking for a site, doing your due diligence, arranging finance, getting development approval, finding a builder and completing construction, and then using a marketing team to sell or rent the properties.
\n\u201cYou don\u2019t need a university degree \u2013 in fact, I\u2019ve had students who never even completed high school, and it\u2019s all irrelevant. None of that holds you back,\u201d he says.<\/p>\n
While Andersen used to tour Australia to share his knowledge, his Property Mastermind program is now online, making it even more accessible. The program gives aspiring developers options from basic fundamental teaching all the way through to three-day workshops and one-on-one mentoring.<\/p>\n
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\nBob sharing his strategies at the Property Mastermind bootcamp.<\/em><\/p>\n