Everyone (well nearly everyone) wants to get into property. They all hear about the money side of it, how huge sums were made on deals, life-changing sums in many cases. Yet the reality is that most fail to appreciate that property is not simply a license to print money. Like anything you need to learn your craft, study the market, learn from those more experienced, take small steps, and hopefully, over many years you will make a success of it.
But nobody wants to hear that bit, they just want to get rich quick. Who can blame them.
For those that do want to get rich quick, I think property offers lots of potential. Yes you do need to master the craft, but if you throw yourself in the deep end you’ll learn pretty dam quick.
The easiest way to make it? Simply source land using options, where you control land for as little as £1, which you then increase in value through gaining planning permission, at which time you trade (sell) the option on for a potentially very large profit.
Land Sourcing is exactly what the name suggests, sourcing land, for the specific reason that it can be redeveloped into a use that offers much greater value than its existing use class.
It should be fairly obvious that residential property is one of the most highly valuable uses for land, forcing property prices to rise at ever increasing levels.
They key to all successful property development does not fall down to how well you build, as many believe, but is all about land and planning. These two factors have far greater significance to how any deal will turn out than how well you build. If you do poorly in the land and planning department, then regardless of how well you build out the scheme, the deal will likely be less than satisfactory. With this in mind, you want to focus your study on land and planning. All the other bits of development, such as raising finance and building can wait.
Those starting in property development for the first time, focus on the area that offers the highest returns and requires the least amount of financial resources to get started. Land and planning.
Land in most cases is not brought outright, its secured by way of an option agreement as noted above, whilst planning permission can be secured. This means for £1 you control the site. When you control the site you increase its value by way of planning permission, and then trade on the option agreement.
Do this well and its the fastest way to earn 6-figure returns.
We will look to share the skills needed to make this happen through these blog posts.
Until next time, goodluck.
The Landpreneur