Property developing - how to raise the cash to get started

Doozergirl

I was saying it's not easy dannyboycey, but that it isn't, or shouldn't be, a case of missing a boat, it's about starting your business based on the correct foundations. It is possible to make money without HPI and it's also possible to not interfere with properties that should go to FTBs.

And then I got on my high-horse and suggested that I might know a bit more about property developing than you do, LOL!

dannyboycey

Doozergirl wrote: »

I was saying it's easy dannyboycey, that's all. It isn't a case of missing a boat, it's about starting your business based on the correct foundations. It is possible to make money without HPI and it's also possible to not interfere with properties that should go to FTBs.

And then I got on my high-horse and suggested that I might know a bit more about property developing than you do, LOL!

lol - No worries - I'm probably not making much sense today anyway. It's one of 'those' days.

Doozergirl wrote: »

it's about starting your business based on the correct foundations.

That, I wholeheartedly agree with! And I think you need to be a certain type of person to do it - i.e. extremely motivated, business-minded, entreprenerial etc Not to mention having a pretty good skillset when it comes to doing up a house and project managing. You basically need to be a jack of all trades.

nobblyned

Doozergirl wrote: »

I have the same boots as the Beeny.

Boots? That's just one letter away from what many of her viewers consider her best feature....

Doozergirl

I just had a can of coke. I get a bit excited.

[Deleted User]

Your BF sounds like he has the right background to get started but house prices are so overpriced that you are unlikely to make enough profit from developing to give you a wage especially given the high gearing involved and risks.

My suggestion is your BF gets another job and you do it on the side while living in the house at the same time, then see how it goes and whether it pulls in a 40K+ income and then go from there. Youll prob find there aint much money in it because there are so many wannabe developers having a go that the prices of shoddy housing is not much less then decent places.

[Deleted User]

The real money would be in acting as a project manager for these wannabe developers that all lose money!!!

edit- start practising sucking through your teeth and saying "hmm be about 120-150K"

Vast majority of property developers at the mo are people that have quite accidentally bought property in the right places, believe that it wasnt an accident or a point in the boom bust cycle and it was actually great skill and intelligence even though they didnt know it at teh time of buying. They then randomly buy duff houses for too much money, and get sarah beeny in too watch them make a 40K loss for 2 years worth of expensive builders. Then every sensible person laughs at the TV, everyone else tells themselves that they have built up loads of equity in there london flat and thus should become property developers so that they can also enjoy a 40K loss.

Rimo2021

JennyP wrote: »

My boyfriend has just left his job for personal reasons - he was an engineer working in the building industry.
We're ideally placed to do property development - I've done a couple already as a kind of hobby and he's got lots of skills like plastering, plumbing, knowing building regs inside out, joinery. Our problem is how to get started. I'm self-employed and my mortgage company won't lend me any extra cash for a deposit on a new place. He is now unemployed. How do people fund the initial development? Is there a way of raising a business loan for this sort of thing? Or do we have to do something really scary like selling our home to release the equity?

How did you raise the funds to do the 2 you have already done yourself?

robbo1388

Doozer/Dannyboycey i bow to your obvious expertise. Please answer me a few questions?

I was very close to start flipping, if what i understand you mean lots of moves/development for profit aka housedoctor etc.. What are the pitfalls i need to consider?

My story is, i'm to buyout a 1/4 housingassoc. share in my house and could sell for £230k then would look to buy for £185k in my surrounding borough. (These would be real figs, what with my property + street location) thus making back the HA's paid share in that 1st move. I would then look to move regular into those bad 60's decors as mentioned (and there are a good number consistently coming up here) redoing decor/kitchen/bathrooms etc..

Looking to spend say £8k on the gaff + £7k fees for the next move, in ur experience is there £25k to be put on remodernised homes in this way? (Which i think there is + that a house is whatever someone's prepared to pay for it) (I have been seeing this in sold prices, which knowing my area well is not coming down to schools, etc..)
I'm only looking to make £10k plus on the moves, if that's what's possible.

I dont want to be a millionaire.

But 5 moves in say 2 years (a couple of results) and i could have negligible mortgage.

Your very much appreciated advice please (and no fighting!)
Many Thanks.

mr.broderick

Doozergirl wrote: »

I just had a can of coke. I get a bit excited.

Was it a can or a line? ..

annahavana

JennyP wrote: »

My boyfriend has just left his job for personal reasons - he was an engineer working in the building industry.
We're ideally placed to do property development - I've done a couple already as a kind of hobby and he's got lots of skills like plastering, plumbing, knowing building regs inside out, joinery. Our problem is how to get started. I'm self-employed and my mortgage company won't lend me any extra cash for a deposit on a new place. He is now unemployed. How do people fund the initial development? Is there a way of raising a business loan for this sort of thing? Or do we have to do something really scary like selling our home to release the equity?

HHmmmmmm, I just read Jenny's post after I had posted one kinda similar in this forum too. I'm not sure if everyone will hit me with the same tales of doom & gloom but my situation seems SLIGHTLY different (or am I being naive here??)

Anyway, if anyone fancies having a look at my post it's just slightly further up the front page than Jenny's.

BTW - good luck whatever happens Jenny!

Anna