Property Developer Podcast

Messy and costly legal issues in property development can often be avoided through good upfront advice and planning with an experienced property solicitor or lawyer. What are some common contractual issues and legal potholes that you should try and bypass? I speak to a property lawyer to find out.

My guest on this episode is Kristy Muhlhan from Burke & Associates Lawyers. Kristy is the head of their Property Law Division and she shares a wealth of tips and ideas about keeping the legal side of property development in good shape.

One of the traps that can catch people in property development is avoiding spending money to get good advice, particularly before you enter into a contract that is worth a large sum of money, be that a land purchase or a construction contract.

However, good upfront advice can avoid a lot of issues later, and usually later means more messy and more expensive to fix. In this chat we discuss where property developers often come unstuck from a legal perspective, common legal structures that are used by developers and some key tips to consider before entering into any joint venture agreements.

I am sure you will enjoy this conversation about key legal considerations in property development.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site.

So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Legal issues around Property Development

I did a past episode on the legal side of property development, so if legals are your thing then go back to episode 63 where I speak with solicitor Lewis O’Brien about some key considerations for developers before they sign contracts for large amounts of money. There’s plenty of other great advice from Lewis in that chat so be sure to re-listen to episode 63 of the Property Developer Podcast - https://propertydeveloperpodcast.com/2020/02/16/63-legal-tips-for-astute-property-developers/

Links

Burke Associates Lawyers - https://www.burkelawyers.com.au

Property Developer Training – https://www.propertydevelopertraining.com

Social Connection

Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcast

Property Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/

Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast

Anybody who has been through a few planning applications would know that strange things can happen along the way. Getting a permit is not always as easy as it sounds, particularly if there is some contentious element or interest groups start to mobilise against your application.

This is exactly what happened to well known former professional basketball player Andrew Bogut when he tried to get a permit for a redevelopment project he wanted to do on some land he owned.

Instead of being a straightforward application it turned into a massive fight that forced him to the courtroom, cost a lot of time and money, and tested his resolve.

In this conversation Andrew shares how he was blindsided by a local interest group, how the local councillor hung him out to dry, why he ended up at a planning tribunal and how it all finished up. It was a pretty crazy journey for a guy who just wanted to redevelop his land.

Many of the challenges that Andrew faced, I have been through myself with some planning applications, so it was interesting to get his take on the overall experience.

There’s lots of practical advice and insight in this conversation, and I am sure you will enjoy it.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site.

So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Links

Andrew Bogut - https://www.andrewbogut.com/

Property Developer Training – www.propertydevelopertraining.com

Social Connection

Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcast

Property Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/

Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast

The classic pathway into property development is to start with renovations and then move into smaller developments and then on to small scale multi unit projects. And that is the journey that Paul Wilding has taken.

I’ve known Paul for a few years and he’s been doing a number of small unit projects around Melbourne, some in similar areas to my own projects.

Paul shares his insight into what he has learnt along the way including the importance of understanding market dynamics, how to start and grow a developing business, and how to research and analyze a new area to ensure you are delivering a product that meets market expectations.

There’s lots of practical advice and insight in this conversation, and I am sure you will enjoy it.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site.

So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Archives

Remember to dig back into the archives and take a listen to some of the fantastic past guests on the show, including a great chat with developer Jonathan Hallinan back in episode 77. While Jonathan has done some amazing projects including high rise towers, he started off doing humble renovations and spent a lot of time and effort trying to maximize his returns. Jonathan shares so much gold in that chat so I encourage you to go back and take a listen to episode 77. It was certainly a highlight for me to speak with him.

Links

Raphael & Co. Property Group - http://www.raphaelgroup.com.au

Property Developer Training – www.propertydevelopertraining.com

Social Connection

Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcast

Property Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/

Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast

This month I wrapped up a 14 townhouse project that I have been working on for nearly five years. It has been a long, challenging and eventful project. There have been many many lessons and I will share some with you.

We have finished with all the settlements in the complex. I have one remaining unit left unsold which is currently on the market and I'm looking to get that sold in the next month or so. I had always planned on keeping this unit till the end of the project because it is bigger and unattached to the rest of the dwellings on the site, and will appeal to a different range of buyers than the other ones. Anyway, I will talk more about the lessons from this project in a moment.

You can check out the video below of the finished product.

On my other project, I am expecting the Building Permit to be issued any day now and then have the builder on site within the next few weeks. Can't wait to get that project underway. Hopefully we have minimal delays on getting that delivered.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site.

So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Lessons Learned from my 14 townhouse property development project

So, on this podcast I thought I would share some of the key lessons I took out of my just finished project. For those who have been listening to the podcast for a while would know that I have been battling away on this project for a number of years, probably close to five years, which included a failed trip to the planning tribunal to try and get a planning refusal overturned. So it has been a long road.

Anyway, the project is basically done now and looks fantastic. Check some of the video posts I have made on the show's Insta and Facebook pages to see how it looks. I am very proud of the finished product and the buyers who have moved in are also delighted with their new homes.

So what are the lessons I have learnt from this project? Let's go through some of them. These are in no particular order just reflections I have looking back over the past few years...

1. The illusion of perfection can drive frustration

One of the challenges I continue to face is the expectation that things will go smoothly, even though I know and understand there will be challenges along the way. This can be a source of frustration when things go awry or problems pop up that annoy you. For example, I had to spend $6,000 getting a new electricity connection for one of the townhouses because the council wouldn’t allow the cables from the central meter to run across the front garden of one of the townhouses at the front of the site. This was frustrating and annoying, and shouldn’t have really happened if the services engineer had designed something that council would be happy with, but they didn’t and I had to sort it out. It was frustrating and shouldn’t have happened but it did.

So the lesson for me was a reminder that bumps and unexpected turns are par for the course when doing a development and you just have to roll with them.

2. Growth happens when you are challenged

So following on from the previous point about perfection, is also the benefit of challenges in terms of how they help you grow and adapt. The funny thing about challenges is that they force you to evolve and learn. Easy projects don’t really teach you much, you don't gain as much experience, so I think it is wise to embrace the pain when it happens so that you can evolve and expand as a developer. It is when things don’t go to plan that you can understand where things go wrong and what you can do in the future to try and make it sure it doesn’t happen again...

The lesson on this point is that without the pain can you really enjoy the pleasure.

3. Nobody cares more about the project than you

You can be sure that nobody wakes up in the morning more enthused to deliver your project than you. And that means you need to stay on top of the people who are working with you to make it happen to ensure things are getting done on time. You also need to provide a dose of inspiration to keep them interested and focused on the job. I do this through regular check ins and asking how things are going. It is also beneficial to remind people that you are grateful for the work they are doing on the project. So remember you are the conductor of the orchestra and you need to keep everyone in time and focused.

4. Confirmation bias can derail a property development project

A huge lesson I learnt through this project is to be very wary of confirmation bias. Confirmation bias is where you believe your own view of the world. This stems from my loss at VCAT where I held a view that we should get a permit, and this view was supported by my team, and I accepted their reassurance because it mirrored my own. But we were wrong. The lesson is to try and remain open minded and explore the worst case scenarios so you can try to mitigate them, and be alert to believing that your own worldview is the likely outcome of a situation.

5. Maintain a strong financial picture throughout the project

There are a lot of expenses involved with a property development project, and invoices fly in and money goes out all the time. Variations come up in building and numbers forecasted in feasibilities change regularly. The market moves, you might sell for more or less than you expected, and it is important to keep a good eye on how you are tracking so you know where you stand financially, as this has a big impact on your sales campaign and understanding what kind of sales results you need to get to achieve a certain financial outcome. It also forces you to maintain some financial accountability for how costs are tracking against forecasts. The lesson is to ensure you are regularly aware of how the project is tracking financially. That might mean a monthly report from your project accountant, or a consistent effort on tracking expenses and cashflow through your spreadsheet or however you plan on managing your project financials.

6. Property markets can change quickly

Property cycles can change quickly. In the cycle of this project we went from a market reaching a peak, to a softening period, and then a massive growth phase again. There is no way you could have predicted that type of change in a five year period. It just goes to show how quickly the market can change, for the better and for the worse… The lesson is that it is very hard to predict where property markets will head so be aware they can change quickly.

7. Liquidity and contingency are the lifeblood of a property development project

I think having sufficient cash to get you through a project is really important. It allows you to keep the project moving ahead, pay your team and other suppliers in a reasonable and fair timeframe, and reduces the overall stress level through the project. Having enough cash allows you to avoid delays while you scramble to raise capital, and to take care of some of those unexpected costs that pop up along the way. Having enough working capital makes a big difference to how you manage a project. It facilitates less volatility in your decision making, and allows you to keep things moving. For example, we had some water issues on site that required $11,000 of additional drainage works, while I was not happy about having to pay for it, and looked for alternatives and ways of not doing it, ultimately there was money in the contingency for that exact type of situation, the works got done and paid for. So the lesson here is a timely reminder to have enough cash ahead of each stage of a project so you can keep things moving along.

8. It is helpful to have investors/stakeholders who understand the risks

During a project when everything runs smoothly and exactly to plan you may not face many issues from people who have invested in your project, but when things don’t go exactly to plan that’s when it pays to have ensured your investors are educated about the risks of a project and what can happen along the way. The added stress of dealing with anxious investors would certainly add another level of complexity to a project. So the lesson here is to carefully vet who you accept money from and make sure you take the time to explain the potential risks involved with the project, and try to partner with people who have experience in investing.

9. There's a great sense of satisfaction from having happy customers

One of the great benefits of doing property development is the sense of satisfaction and gratification when you hand ov

There’s nothing like experience to provide some hard won lessons on what works and what doesn’t work when it comes to delivering a property development project. While every project is different, there are some fundamentals that can be applied across projects to help things go as smoothly as possible.

Matt Chamberlain from Chamberlain Property has delivered more than a dozen small scale development projects and shares with us some of the tips and ideas that have worked for him.

We cover the importance of research and understanding the market you are working in so that you can prepare a great feasibility, how resilience is something that has really helped Matt get through the many challenges he has faced, and how his business probably grew too quickly in the first few years.

Keep an ear out for how Matt likes to shape his feasibilities and the key metric he looks at to ensure his land cost is no too high.

Project Updates

MontVue - Titles issued, trying to wrap up practical completion and get Settlements booked in.

Cambridge - Finally got town planning endorsement of the plans and drawings, working on building permit documentation so construction can get started.

Property Development Training

If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site.

So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Archives

Don’t forget there is a rich archive of past episodes if you want to go back and take a listen to all my past guests, there’s some absolute crackers in the vault. I was thinking the other day of my chat with former Victorian Premier and trained architect, Ted Ballieu in episode 73 and how we talked about the decay and disappointment of the planning system, definitely worth a listen.

Links

Property Developer Training - www.propertydevelopertraining.com

Chamberlain Property - www.chamberlainproperty.com.au

Property Developer Podcast - www.propertydeveloperpodcast.com

Social Connection

Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcast

Property Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/

Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast

Many developers look to grow their business quickly, trying to scale and improve their returns. But scaling rapidly comes with risk, as you expose yourself to more debt and leverage. However, slow and steady might just win the race. My guest today has taken a measured approach to growing his development business, and we'll discuss his deliberate approach to scaling and growing a property company.

I am speaking with Peter Siassios from Inland Property Group. Peter is doing some awesome townhouse projects and slowly growing his development empire. We have a great conversation about how he has gone from tradie to developer and what he has learnt along the way. Peter has been working on controlling as many parts of the development process as he can including building his own projects.

Some key points we covered include:

1. The importance of knowing who your buyer is and the power of meeting with them

2. Sticking to what you are good at and knowing your area

3. Take your time to grow

Property Developer Training

I have been humbled by the number of people who have signed up to the Property Developer Training. Thank you to them all. If you would like to get started in property development and want an easy to consume course that takes you step by step through the development cycle then head over to www.propertydevelopertraining.com and check out what's included.

I've been getting great feedback from people, including Declan who says:

"I highly recommend the Property Developer Training to anyone wanting to take their developing to the next level. It takes much of what is discussed on the Property Developer Podcast and translates it into the practical process of development. Great training on feasibilities and construction costs."

Thank you Declan, glad you enjoyed the training. So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside...

Project Updates

MontVue

Exciting times at Mountain View Rd as we have held our first group of buyer inspections on the completed townhouses. It's the first time people have had a chance to wander around their new home so it is a big milestone in the project. I am very close to satisfying all the permit conditions for the subdivision permit which will allow council to issue a Statement of Compliance and enable the new titles to be issued and sent to the Titles Office. And that means that settlements are on the near horizon. Yeehaw! One other point of interest on that project is that I finalized an off market sale directly with one of the neighbors to the site. Was fun to work with them on the sale. Funny how some things happen during a project.

Cambridge

On my other project I am still waiting to get Town Planning endorsement from council, it's coming up to 3 months now, far out, it's so slow, anyway, we are finalizing our funding facility and getting the final pieces in place so that we can get our Building Permit and get going. I Can't wait to get that project underway and it's going to look awesome when it is finished

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Social Connection

Check out Facebook [https://www.facebook.com/propertydeveloperpodcast] and Insta [https://www.instagram.com/property_developer_podcast/] for my latest project updates and other development related news.

Links

Property Developer Training - www.propertydevelopertraining.com

Inland Property Group - www.inlandpg.com.au

Property developing is often a solo pursuit for many but partnering up can be a great way to accelerate your business and complete more projects, however there are some important boxes to tick before you join up with someone else.

There are many benefits to joint venturing and we will discuss what these are along with some pitfalls to avoid and mistakes to sidestep.

"If you are not at the next level and you want to be, there's a reason."

Zoltan Celedes - Arena Equity

Property Development Joint Ventures and Partnerships

Today’s guest is an old colleague of mine Zoltan Celedes. I met Zoltan many years ago as he was doing his first 3 unit development project and we have stayed in touch ever since, and he has gone on to do numerous projects of varying sizes. What is interesting about Zoltan’s story is how he partnered up with another developer that you know, John Marquez, who has featured a number of times on the show. So this is the story of why they decided to team up and what they have learnt from it. We also discuss how they attract investors to help fund their projects and what you can learn from their experience.

In this discussion we cover:

- Why Zoltan entered into a business partnership to accelerate his property developing

- the importance of formalizing agreements, and

- some tips on attracting investors to fund your projects.

Keep an ear out during this conversation for the reason why you shouldn’t enter a joint venture, as I think it is a great point that Zoltan makes, and one that maybe isn't considered enough.

This is a great discussion about how partnerships can help take you to the next level.

Current Project Updates

Here’s a quick update on my current projects. So practical completion is fast approaching on my project under construction, most of the townhouses are basically completed, it’s only the three at the front that are having internal fixings done, the next big task is getting the new driveway and crossovers done, which will be a pretty big job, as there’s about 70-80 meters of driveway to pour plus three crossovers.

On my other project, we are still waiting for council to endorse our town planning drawings, even though it's been more than six weeks since we submitted our application but they still haven’t finalized it, which is quite frustrating, anyway, we are busy with all the pre construction activities like getting the finance finalized and readying for construction to get underway. The big news on that project is that I have finally signed a contract with a builder to deliver the construction, which is great, as it has taken more than six months to finalize that, but not without a couple of shocking price rises along the way. Anyway, we are now speeding towards getting them on site and started.

Property Developer Training

I’ve got some big news to share. As you know I have been working for months on putting together an online program for people who are interested in learning about how to develop property and it is finally ready to open up.

I get so many emails from listeners who say that they are really keen to get started in developing but don’t know where to start or how to go about it, so in response I have put this training together. It is like looking over my shoulder as I go through a development project.

We cover:

the importance of preparation and getting read

finding the right team members at the right time

researching the market to ensure you are developing something the market wants

finding a great develop site

running a great financial feasibility

project finance including construction funding

how to prepare a strong planning application

pre-construction mode including selling off the plan (if you need to)

finding and selecting a builder, and then moving into construction and completion

closing out and getting paid!

So I clearly cover each stage of the development cycle.

I've had a few test pilots going through the training and the feedback has been fantastic, so now I'm ready to let more people in. If you are interested in learning how to develop but have been holding off, well now you have a good excuse to jump in, as the course is designed for you to consume at your own pace and in your own time, with lots of checklists and guides to keep you on track.

Head over to www.propertydevelopertraining.com and check out the video I have put together explaining what include in the course. I am really happy with it and I would love to see you on the inside. And as a special launch offer, if you email me and let me know what your favorite episode of the show is, I will give you a discount code to knock off a substantial amount from the course fee. My email is [email protected]  I look forward to seeing you on the inside.

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Social Connection

Check out Facebook [https://www.facebook.com/propertydeveloperpodcast] and Insta [https://www.instagram.com/property_developer_podcast/] for my latest project updates and other development related news.

Links

Property Developer Training - www.propertydevelopertraining.com

Finding a great property development site only to discover it has a restriction on the title like a single dwelling covenant can be very frustrating and often leads to a potential project being ruled out. However, getting covenants lifted or modified is not an impossible task, but it can be tricky.

Fortunately, we are speaking with a previous guest who has lifted not only one, but two, restrictive covenants in two very different ways.

So let's find out what's involved with varying or removing a single dwelling covenant or other restriction on a property's title.

"Be inquisitive and you might learn something useful." John Marquez

 

Lifting Restrictive Land Covenants

What is a covenant

How do I know I have a restrictive covenant

Ways to remove a covenant

Who to use

Removing via Planning Process

Removing via Supreme Court

Determining which option to go with

Listen out for how John ended up at sitting in the Supreme Court thinking they may lose his case...

Property Developer Training 

If you are keen to get started today in learning about the property development process and what you need to do at each step, then jump into the Property Developer Training course (www.propertydevelopertraining.com). This is the program that Justin has put together to help you get quickly started in property developing. 

Complete the course at your own pace and in your own time, and learn the tips, trips and techniques that Justin has used in all his projects. Find out more at www.propertydevelopertraining.com

 

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at...

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Social Connection

Check out Facebook [https://www.facebook.com/propertydeveloperpodcast] and Insta [https://www.instagram.com/property_developer_podcast/] for my latest project updates and other development related news.

Transcription

JustinHello and welcome to episode 81 of the show. Thanks for joining me. Trust you well. I'm doing OK just sitting in another lock down in Melbourne, so it's been another couple of weeks of just sitting at home with the kids around and. Everyone getting a bit bored, but we're working our way through it and we're just about to come out the other side, so fingers crossed that we can continue being open. So fortunately, residential construction has remained open, which has been good for my project because workers continued things are looking good on site. All the scaffolding is come down now so it looks really nice on site without any of the scaffolding around and you can see the designs of the buildings shining through. The interiors are being worked on. Some of the interiors of the. Town houses are just about done is starting on the landscaping. They've poured some of the driveway and the finish line is insight, so it's been quite good. Although there's been the usual issues that have popped up that require some solutions to problems, but that's part of developing so things are moving along there, which is really exciting on my other project. The site has been cleared. It's looking really good. We've submitted our town planning package into council for endorsement, so we're just waiting for them to hopefully stamp that. We've managed to achieve our pre sales which is good and we're just getting ready to start construction. So going through all the financial documentation and getting all the conditions sorted out so everything happening there as well. So it's been a very busy couple of months for me now. One good part about the lock down in Melbourne is that I had a little bit of time to wrap up my training program which has been good and I now have some people in there testing it out. And I'll be opening it up soon to other people. So if you are interested in learning how to develop property then please email me [email protected] and I can send you some more information about the program. I'm sure it's going to be something that people really enjoy now. Speaking of my project updates, be sure to check out my social channels on Insta and Facebook under the handle of property developer podcasts and you can see all my latest project updates. I do video updates about how the sites are looking, so if you want to check out how they're progressing, that's where you can find them. And I also post other property development related news, so go check him out. OK, onto today's guest. A friend of mine, John Marquez, will be familiar to people who listen to the show. John was my very first guest on the show way back in Episode 2 and we also talked to him in episode 12. John is a very active developer, done a number of projects, couple of four units sites a couple of 10 unit sites. He's got quite a few projects happening and we're going to talk about John's experience getting restrictive covenants lifted off property. So this is a conversation we haven't had before on the show. It's quite interesting about how you can get a covenant lifted off a potential development site. So in this conversation with John, we're going to talk about what is a restrictive covenant and how do you know if the land you're looking at has one? Who do you need help from to remove a covenant? And how do you actually go about getting them lifted? So keep an ear out in this conversation for how John ended up sitting in the Supreme Court of Victoria, wondering whether or not he may be losing his case. So this discussion between John and I is just that, a conversation. It's not legal advice about how to get a covenant removed. You need to talk to a good lawyer about getting that done. If it's something that you're thinking of doing anyway, I really enjoyed this chat about restrictive covenants. It's a good one. I'm sure you'll get something out of it, so let's head over to Jaune. John Marquez from Arena equity. John - 0:04:25Welcome back to the Property Developer Podcast. Thanks again Justin. Good to be back for those who joined the podcast a bit late in the piece. Justin - 0:04:37John was actually my very first guest on the show in episode #2 and then you came back and joined us for episode #12. So if you want to find out a bit more about John go back and have a listen to those two episodes. But you've had a pretty interesting property development career so far. You've decided to tackle a couple of interesting projects which we might touch on a couple of them today, but you did a small. For you to project is your first project and then you partnered up with someone and took on some bigger projects. And one of them involved removing a covenant which we're going to talk about today. Removing covenants, but maybe just give us a quick snapshot of what you've been up to since we last spoke. You've definitely had a few more projects under the belt. Well, one of them that I forgot to mention was a trip to the Planning Tribunal, which you weren't successful at. John - 0:05:40So yeah, you've had a pretty colorful developing career. Yeah, that's correct. I mean, it's it's funny, isn't it that when we first start developing and for those of us that have had mentors in the past where sort of told this is what you should look for in relation to a site has let your agents know these dimensions this size. This and that? And then we just find that the properties that we actually come across and end up buying completely curveballs an. In tough markets, sometimes you just have to accept the fact that. You will come across sites with problems and challenges and we've just found that that's been the best learning for us. Yes, I think we last spoke. Justin - 0:06:28You tackling an 8 unit site that's definitely been wrapped up. Or maybe it was a 10 units. I think he did another 10 units site. So then you've got a. I think you're just finishing a four unit site. You've just acquired another 4 unit site, so you've been pretty active. John - 0:06:49Yeah, so as soon as I joined forces with my other business partner we. We just spent the time we both, uh, sorry, tell that an auction where the prices blue beyond anything we thought it would, and so we sort of both had the idea. At the same time that we need to step up to the next level because there's just too many people like this three to four unit sites. Just too much competition, so it's finally as soon as we make that decision. We started finding larger sites quite easily. Things have changed now, but. Yeah, it's quite surprising how quickly we found them. Justin - 0:07:33So I think your first project as a partnership was this. Is that a 10 unit site anyway? Was the site that had a single dwelling covenant. So let's talk about we're going to focus on covenants and removal of them. So let's give you've got two projects that you've done now, so perhaps you could talk us through that first sight, and then we'll move on to the other side. That has had a covenant in, and how they were slightly different. John - 0:08:01OK so the it's funny the first sight. But we actually came across the header covenants with the one dwelling covenant....

Partnering up with somebody to do a property development project is not uncommon but would you do it with your sibling and take on some big towers? But before we get to that, here’s a quick update on my townhouse projects.

Construction is moving along nicely with project 1, most of the site is at lock up stage, which is good. Actually had a meeting with a council enforcement officer last week to discuss noise complaints from a neighbor but fortunately we were compliant with our obligations so no action will be taken against us. Been spending this week working through the usual build ability issues that pop up on site.

On my other project, we are trying to finalize all the documentation and supporting materials to go back into council for endorsement and the building permit. It seems we are getting approval for the shorter crossover alignment, which has taken nearly 12 months to resolve. I’ve also booked in the demolition of the existing house. Still a lot to do on this project with getting funding finalized and construction started.

Episode Guests

Today’s guests are brothers Fayad and Remon Fayad from Ellerson Property in Sydney. Based in Parramatta, in Sydney’s west, Fayad and Remon have between them 40 years of experience in property. Having grown up in a family of builders, the boys have joined forces to deliver a range of project in the residential, retail and commercial sectors.

In this chat, we discuss why they decided to team up, their focus on understanding the customer journey and what they learnt from the pullback of bank funding. Keep an ear out for the discussion around running design competitions.

Property Developer Training

If you are keen to get started today in learning about the property development process and what you need to do at each step, then jump into the Property Developer Training course (www.propertydevelopertraining.com). This is the program that Justin has put together to help you get quickly started in property developing.

Complete the course at your own pace and in your own time, and learn the tips, trips and techniques that Justin has used in all his projects. Find out more at www.propertydevelopertraining.com

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at...

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Socials

If you would like to see how my projects are progressing, check out the video updates on the show’s Facebook [https://www.facebook.com/propertydeveloperpodcast] and Instagram feeds [https://www.instagram.com/property_developer_podcast/], they are both under the handle of Property Developer Podcast, so take a look at how things are going.

If you are interested in getting into property development, head over to www.propertydevelopertraining.com and take the quick quiz to see how ready you might be to get started, or if you would like to get some mentoring, email me [email protected] and I will send you some info on the program that is available to guide you through the property development process.

Links

Ellerson Property - https://ellersonproperty.com.au

Transcription

Well we're here today to talk about property developing and the two of you have been involved in property development and you've partnered up and set up your own developing company but give us a bit of a background of yourselves and how you got into developing and what you're up to. I've been in property for 20 years now straight out of school I was lucky enough to be involved in a family business at the outset predominantly construction, so construction background, getting buildings up more of the hands on and then more recently involved in property development side of the business acquisition funding and project marketing. And then up until recently found that that's probably my cup of tea and teamed up with Remon to start this new venture and Ellerson. So yeah. And what about you remind me? I guess it's it's in our blood. So we're we're in development since we're since we're born. Great grandfather was in construction back in Lebanon. Grandfather started the original business here when he moved over early, early mid sixties. And then yeah just I mean our whole life it's been property so go on family barbecues going a family is just always property of the uncles and cousins, everyone involved in it. So there was really not as no escape but it's always in use genius naturally it's involved and you're like fade straight from school, went into the construction side and and started from there and then how did you get into doing projects again? Yeah. Just from starting from starting for construction on site, seeing how it all unfolded. Obviously learning from our father who was has been, who guided us and was our role model just just learning from him and yeah, Ellerson now gives us an opportunity to start our official first development together. There was developments that we were doing under the family umbrella together. But this is our real coming alive, we're coming out now doing our first one together. It's one in Parramatta which is our Heartland. So it's an exciting ones built to run win. So one that we will always keep, so I'll always have better sentimental value to build to rent. Products are first one and one that will always keep within the business and fired. What sort of projects were you doing along the way with a Townhouse projects? Apartment projects, what we're cutting your teeth on straight out of school? I was laboring on apartment projects. My first foray as a site foreman was actually 14 town houses in carling furred. So my first project under my my I guess guidance or leadership were town houses after that. More multi density, so multi dwelling sort of apartments, townhouses, duplexes, villas, so that that sort of space more recently focused on apartments, medi density, high density. that's where we are at the moment. Yeah. And what about you Remon? What sort of projects were you cutting your teeth on? I've got a bit more of an interesting background. When I started construction straight out of school, I went to the construction site, obviously just thinking it was going to be a part of me and following in fade footsteps following my dad's footsteps. Probably about a month after, after HSC went on site about a month into it. I was on a Townhouse site as well, probably about 25, 25 townhouses and during the course in Taft during the, the building costs and just came home one day and pulled them aside and said, I don't know how to tell you this, but I don't like construction. So I always went to mom first. She was always a soft loan you can talk to, always be worried about what dad's gonna think. So. And she said, what are you worried for? So then I had to go through it all and mentioned it to dad and dad was like, yeah, it's no big deal is like, oh, it's a bit easier than I thought. So he said, yeah, go out and do whatever you want. I think in the back of his mind, he always knew I would eventually come back and it's what I did. So yeah I left the company for a bit and what often got into sports management. So managing football players and managing sports players. Which yeah I was always into sport, growing up rugby league, soccer, swimming, basketball the whole lot. So I always had that idea in my mind. But again dad was right after about and about a year yeah I came back to him and said ok yeah can you find me another job? So then he put me in the office and so it wasn't so much the construction side of it, it was more the development side so acquisition planning sales of that kind of which has been a good balance for fate and the fate of myself, it was always a construction I and I was a bit more development. So it worked out well in the end now we're seeing all of it together but he's always got that extra I'll construction and from the development of planning side it's that's probably my stronger point and fired. How come you decided that you would team up? We worked together hand in hand in the business, predominantly roman looked after the functions of, as you just mentioned, acquisition planning and where's my strengths were in construction and delivery. We were prepared previously and we just decided to continue. I guess it was it was a natural, was a natural connection just an extension or a new chapter of of what we were and what we were doing best previously. So yeah, I think taking nothing away from what the old generation did. It was just, it was just about the experience with the knowledge, we had the support of family to do it. And I think it was, it was just the right time. It was just we were doing our own thing, was starting to do a bit by bit, but now we wanted to officially make it our own company and start our own, start our own thing. So to be fair to say that the projects that you're working on previously within the your dad's business was around delivering projects for other clients, will be doing a mix of your own stuff plus for clients. Yeah, but in the last 10 years, 10-15 years was a lot of our stuff....

Building to sell is the classic model that property developers often follow. They create value, realise the gain and then recycle their capital and do it all again. But when market conditions change this may dramatically impact the bottom line and render this model unviable. So what do you do if you are starting a project or half way through?

Well, one option may be to repurpose your project and exit that way, or you could choose to hold on to the stock and ride out the change.

Adapting your stock to longer stay accommodation might be a model that suits your needs. It enables stock to be held longer without huge changeover costs, and can create an appreciating asset base with good cash flow.

I am speaking with David Whelan from Urban Rest Apartments about how they are working with developers to convert their projects from build to sell and turn them into higher yielding assets.

Property Developer Training

If you are keen to get started today in learning about the property development process and what you need to do at each step, then jump into the Property Developer Training course (www.propertydevelopertraining.com). This is the program that Justin has put together to help you get quickly started in property developing.

Complete the course at your own pace and in your own time, and learn the tips, trips and techniques that Justin has used in all his projects. Find out more at www.propertydevelopertraining.com

 

Property Developer Quiz

Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at…

Become a Million Dollar Property Developer

Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.

In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.

Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.

This book has the answers for how you can make the leap into property development. Grab your copy now.

Links

Urban Rest Apartments - https://www.urbanrest.com.au