How to double or even TRIPLE your property renovation profits (& keep your nerves intact too!)
Property Development is easy - just buy a run down property - do it up and sell it on for a profit! BINGO!
True or False?
What do you reckon?
Well, if you've never tried property development before, then you might think it is as easy as anything.
There again, if you know property, you'll know it is false - it just isn't that easy!
Of course, the professional guys make it look easy, but there is blood, sweat, tears (and years of experience) behind that calm exterior. "Just wanted you to know how invaluable the property secrets website and Renovation Secrets have been to us since we entered the property development arena. We are now onto our 7th property and are looking forward to expand further..." Ruth Johnson, Property Developer
In my experience, here's where the smaller guys get caught out:
spend money on the wrong improvement your property doesn't achieve the expected growth in value overlook problems that prevent the property selling quickly and easily overpay workmen lose good workmen due to underpaying choose bad workmen who do a bad job and end up costing you money and running over on time suffer unnecessary delays and cost over-runs fail to plan the project and manage the critical path
Oh yes, there are more. How about that stomach in the mouth experience of:
ripping up the old carpets before sanding the floor boards to discover that part of your floor has been replaced with MDF? pulling down the plaster and lath only to discover more problems underneath a simple electrical fix blows the whole circuit
Well, you can imagine can't you (in fact you may already know!), what this would do to your nerves, your motivation and - well, yes, your wallet too!
How you implement, manage and run your development project will be the biggest determinant of your final profit!
Get your project right, and you can add ££££ to the value of your property - get it wrong and all your project profits will disappear in a haze of delays, mistakes and heated emotions!
But am I too late to make money from property renovation?
No you are not! In fact, here are some excellent reasons why Property development will continue to give you great returns:
UK Population is expected to increase 10% by 2027. There is no way current house building can keep up!
Demand for attractive properties in prime locations is greater than every before. Look beneath the 'property boom/ bust' headlines and you'll always find that everyone wants newly refurbished property in great locations - only most of us are not willing to do the refurbishment ourselves! And that's your opportunity...!
Most part time 'developers' specialise in adding a quick lick of paint and new carpets. If you are willing to go further and take on bigger projects (yes, including subsidence) you'll be dealing in property that is sold at a far greater discount because nobody else knows how to manage it...
...and that means you'll be able to choose property that offers you far greater returns. (Yes, I'll show you how to manage a subsidence project!)
Property Renovation - can you succeed?
Yes you can! In fact, nearly every one who starts out, begins knowing very little - it just a question of whether you prefer to learn by making lots of (very expensive) mistakes yourself or follow the advice of the professionals and take the fast track to success?
PS. You do NOT have to be a DIY expert to benefit from Renovation Secrets - you simply need to be able and willing to manage your project!
And that's why the insider advice in this manual and software spreadsheets is worth it's weight in gold. It really doesn't matter - 'beginner' or 'expert' in next to no time, you'll be adding value, saving costs and, I believe, doubling or even trebling your returns.
You see, in the property renovation business you can be sure of three things...death, taxes and cost over runs!
In a recent report, the government reported that its own projects over ran costs by an average of 13% - some ran over by much more!
If this happened to you on an average property development project then this would be the effect:
Scenario 1 - costs on budget and property developed to full potential
Property cost £100k Renovation budget £20k Over run costs £5k (25% over run) Buying and selling costs £5k Selling price £150k Profit £20k = 15% (£20k) return on investment (£130k)
Scenario 3 - costs over run and fail to develop property to full potential
Property cost £100k Renovation budget £20k Over run costs £5k (25% over run) Buying and selling costs £5k Selling price £135k (developed the 'wrong' parts of the property) Profit £5k = 4% (£5k) return on investment (£130k)
So, with the same property, in the same location, in the same market conditions, the return can swing between 24% to 4%! Or between Success and Failure!
The professional renovators of residential property are looking for a 20% return. Returns of less than 20% are considered less attractive and more risky.
Hence, given that moderate cost over runs can reduce the return to 15% and combined with developing the property well (but inappropriately) could bring your return down to as low as 4%!
Essentially, at a return of 4% you are not making any money! If you costs over run and you fail to develop the property to full potential you won't make money!
That is why, once you've found your property or bought your home, your success at making money from the property is dependent on two factors and two factors alone, namely;
Your ability to accurately forecast, control and manage your costs
Your ability to identify which improvements in each part of the property will give you the greatest increase in value when you come to sell!
That's it! Just these two key factors:
maximise return on your improvements
...determine the difference between great success and healthy profit or failure and disappointment.
Sounds simple doesn't it?
Well, like most things in life, it is simple once you know how and have got years of experience behind you!
So, now you know the answer on how to double or triple your property renovation profits.
But of course, it requires a few special skills:
An ability to assess opportunity and cost for a whole variety of improvements that you could make to a particular property.
An ability to leverage your skills and the skills of others (tradesmen and professionals) into meaningful and cost effective change. This requires that YOU are good at managing yourself, at managing others and at selecting the right type of others! An ability to minimise material costs.
This is how profitable property renovation business works. It adds value beyond its costs.
And here are the four fundamental ways to add value to a property:
You can add "curb appeal". i.e. change perceptions about the property. You can add functionality. You can remove disincentives. You can change spatial quality.
Great, so now you know! Only problem is, you know the tips, but how do you actually put that into practice?
Well that is exactly what Renovation Secrets is going to show you...