Real Estate Development Club
Helping Beginners Get Started In Small Real Estate Development!  

Finally! A BETTER, FASTER, SAFER and EASIER Way For Beginners to Get Started in Small Real Estate Development.

 

Discover How You Can Increase Your Cash Flow, Build Your Own Equity and Acquire Property Wholesale in Any Market!

 

Adrian and Amber Zenere - www.RealEstateDevelopmentClub.comSmall Real Estate Development Book For Beginners

Adrian and Amber Zenere

Architects, Designers, Builders and Development Consultants

Authors of RED Armchair Entrepreneurs RED Hot Property Profit$

FREE WEBPAGE REPORT

Welcome!

We’ve put this FREE webpage report together to show you how we managed to fast track our wealth creation through small Real Estate Development. We’ll walk you through the real estate development process that we used to build a sustainable Real Estate Development (RED) business and we’ve included all the steps, resources, hints and tips that we learnt along the way.

 

Why Real Estate Development?

After Adrian completed his Architecture degree and prior to establishing our own architectural practice, Adrian worked for large architectural firms for nearly 20-years and was involved with hundreds of millions of dollars worth of Real Estate Development projects. During this time Adrian also became a Licensed Builder and learnt the ‘tricks of the trade’ as well as valuable insider trade secrets and shortcuts but more importantly he learnt the mindset of millionaire property developers and entrepreneurs – the things they didn’t teach at University!

However, it wasn’t until we’d been working in our own architectural practice Archizen Architects for sometime that we began comparing the long hours we had to work for our wages to the extraordinary profits that our property developer clients were making leveraging off other people's time, knowledge and skills.

So, we made a decision to work smarter and not harder by emulating our successful property developer clients.  But unlike many property developers, we didn’t want to just sell and make quick profits. Instead we realised that one of the biggest advantages of property development was the ability to acquire a property portfolio at wholesale costs rather than paying retail prices.

Therefore we took an holistic approach to our wealth creation. Our goal was to increase our net worth and create our own equity using Real Estate Development to build a sustainable business that would allow us to live off both the multiple streams of passive income and the expected capital growth.  This would also help us to ride out the typical boom and bust phases of property cycles.

To avoid costly mistakes in the beginning we started off our Property Development career with smaller projects in our spare time such as renovations and new home developments.  Starting with smaller projects such as these will give you confidence to move onto larger scale projects (think big but start small). Below are a few examples of our smaller projects we completed when we first started out.

Simple Renovation Project:

   
   
Purchase Costs: $208,000
Sale Price: $275,000
   

Home Renovation Project:

Home Renovation Project - www.RealEstateDevelopmentClub.com    
   
Purchase Costs: $360,000
Sale Price: $455,000
   
   

Sold with Architectural Plans:

   
   
Purchase Costs: $700,000
Sale Price: $775,000
   
   

New Home Development Project:

   
   
Purchase & Build Costs: $220,000
Sale Price: $504,000
   
   

New Home Development Project:

New Home Development Under Construction

   
   
Purchase & Build Costs: $257,500
Sale Price: $575,000
   
   

New Home Development Project:

   
   
Purchase & Build Costs: $600,000
Sale Price: $1,280,000
   
   

 

Our Current Real Estate Development Projects:

After completing a number of these smaller development projects we gained confidence and began to look for larger opportunities. We currently have a number of projects on the drawing board – so to speak including a corner site and by renovating the existing dwelling we still have 3 development options – land subdivision, a child-care facility, or triplex development (see below).

townhouse / childcare / land subdivision corner development site

Another project is a multi-unit development site in a rapidly appreciating seaside town. This site in particular has seen massive growth in a short period of time mainly because it has a blue backyard and all apartments will have ocean views that can never be built-out.

blue backyard development site zoned multi-unit development

Below are 3D renderings that Adrian has prepared to give you an idea of what the proposed boutique apartment complex will look like. With this DA approved development our aim with this project is to onsell the development approval permit to a local developer.

New Apartment Complex - www.RealEstateDevelopmentClub.com 2

3D renderings of our latest proposed boutique apartment complex

Architectural drawings by Adrian Zenere - Archizen Architects

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If you’d like some one-on-one hand-holding, why not become a RED Club member. You get access to us and our practical, easy to follow online Real Estate Development Home Education Learning Program. Plus access to the Member’s-only Website, RED Forum, and online eLessons, which contain step-by-step instructions, tools, templates and printable checklists to help you get started and avoid costly mistakes. To find out how we can help you get started click here...

Ever get frustrated that your property portfolio isn’t growing fast enough and would like to get started in small property development but worry you don’t have the right knowledge or skills? Become a RED Club member and get access to the online Real Estate Development Home Education Learning Program (RED HELP).  We’ve packed in as much detail as possible and you can rest easy knowing you’ll receive ongoing support from us and access to all the tools and resources we use.

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OUR REAL ESTATE DEVELOPMENT PROCESS

If you’re interested in how we managed to build a sustainable Real Estate Development (RED) Business we’ve simplified our process below.  If you’re looking for a specific part of the process, simply click on the appropriate step.  Otherwise continue reading after this list for more detail including links to some of the tools and resources we use.

Here Are Our 8 Proven Steps We Use To Build A Sustainable RED Business:

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Would you like some help?  We have an online Real Estate Development Home Education Learning Program (RED HELP) where you’ll receive step-by-step instructions as well as ongoing support from us.  We also have a RED Forum where like-minded budding property developers share their experiences, network and explore joint venture opportunities. To find out more click here... 

 

Do you want to become a Property Developer but not sure where to begin or how to make a descent profit?  Let’s face it there are many fears and frustrations when it comes to Real Estate Development and first projects can be challenging however the profits can be very lucrative.  Why not get help and become a RED Club member where we guide you through our Real Estate Development process with easy to follow step-by-step instructions.

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STEP 0: GETTING STARTED

Why Step Zero you’re probably asking – because although we found it essential to our success, once we’d completed this step it wasn’t generally necessary for us to consider this step before every property development project. We do find it beneficial though to periodically revisit the following elements with our team of real estate experts, as our circumstances change.

We put together '4 Getting Started Guides' to help newbies build their real estate development career “on solid foundations” (Pardon the pun, but we are architects after all!). Unless you’re prepared to forfeit some of your profits and engage someone you trust to look after your project, you will need to understand the mechanics of property development fully so www.RealEstateDevelopmentClub.com you don’t end up in all sorts of trouble.

Having worked with many property developers, we noticed that the successful ones had a 'Millionaire Mindset’ - their achievements were not sabotaged by their previous mental conditioning. We've spent a lot of time researching the Rich and in our 'Rich Mindset Secrets' guide we discuss the common characteristics and habits we identified that collectively formed their mindset and contributed towards their success.  As soon as we adopted some of these ourselves we were able to accelerate our learning curve and we saw a marked improvement in our own ability to build our RED business much faster.

Internationally renowned Personal Development coach Paul Blackburn of Beyond Success also helped us with a lot of the emotional stuff and we made some of our biggest breakthroughs during Paul and Mary's ‘Mental Toolbox’ workshop where we learned how to identify and eliminate our emotional blockages to success. If we could only ever attend one workshop in our lifetime then 'The Mental Toolbox' would be it. It is especially helpful for those who are struggling to get started.

www.RealEstateDevelopmentClub.comLearning and implementing the mechanics of Real Estate Development may allow you some level of initial success, however newcomers who don’t alter their way of thinking and create the right mindset aren’t able to preserve when needed and a lot simply give up after their first attempt at Property Development.

We decided right from the start to build a sustainable RED Business and therefore planned accordingly. We had a clear vision and a huge desire to work smarter and not harder so we set ourselves attainable goals and worked out an achievable step-by-step plan using our 'Real Estate Development (RED) Business Plan Template'. This enabled us to reach our goals much quicker. 

We found a strategy that would be a good fit for us, looked at the big picture and began with the end in mind. In our 'Essential Goal Setting' guide we have heaps of tips to help with goal setting and to avoid "analysis paralysis". In our 'Essential Planning' guide we discuss how to plan and stay focused so your goals can be achieved much faster.

www.RealEstateDevelopmentClub.comWe sat ourselves realistic goals and one thing that made a huge impact on us achieving our goals faster was adopting the ‘Pareto Principle’ (more commonly known as the 80/20 rule).  This helped us to stay focused on the “20 percent of things that mattered” and saved us from wasting an enormous amount of time and energy on things that just weren’t necessary. In our 'Time Management Mastery' guide we discuss exactly how to take control of your time so you can use it much more effectively.

www.RealEstateDevelopmentClub.comWe also leveraged off other people’s knowledge (OPK) other people’s time (OPT) and other people’s money (OPM).  We built a great team of property experts who continually advise and support us – especially a ‘real estate development savvy’ lawyer, property accountant and finance broker. When we were forming our real estate team we ultimately wanted to work with the best we could afford and with people we liked.  They assisted us to establish the legal structures that would protect our best interests – especially when it came to asset protection and taxation implications.

To help us make sense of the different types of entities and how they work we used a fantastic resource written by Dale Gatherum Goss called ‘Trust Magic’.  This is written in simple terms making it easy for beginners to understand. 

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If it all seems a bit overwhelming, we’re here to help.  Why not join the RED Club and access the online Real Estate Development Home Education Learning Program (RED HELP) with one-on-one hand-holding and support?  RED Club members receive online eLessons with easy to follow step-by-step detailed instructions plus access to us and all our valuable real estate investing resources. To find out how we can help you get started click here...  

 

Real Estate Development is not an easy process especially for the inexperienced and there can be considerable risks involved however once you have gained the necessary knowledge and experience it can be a great way to fast track your wealth.  We’ve done all the legwork and thinking for you so why not take years off your learning curve and join others by becoming a RED Club member where you’ll receive all our tools, templates, calculators and checklists. 

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To find out more click here...

STEP 1: CHOOSING A GREAT DEVELOPMENT LOCATION

Choosing A Great Location - www.RealEstateDevelopmentClub.com
view from our latest multi-unit development site

When we’re looking for a location to purchase property development sites, we're after "a desirable location with consistently good growth".

In other words, we're after an area that historically has had a minimum annual average growth of at least 10%. 

The growth of an area is normally associated with supply and demand more commonly known as the “scarcity” factor. 

However there are other factors that can influence both the positive and negative growth of an area and we've identified over 30 'Factors That Can Influence Real Estate Capital Growth' - here are just some that we consider:

  consistent median house price increases
  positive population growth
  high socio-economic suburbs
  high percentage of homeowners
  low unemployment

Once we’ve identified an area we undertake a detailed market analysis of the neighbourhood using our 'RED Local Market Feasibility Checklist' then we identify what the town planning regulations allow. Here are just some of the things we assess:

  demographics: Who is our market and what do they want?
  facilities:  Are there schools, transport, shopping centres, hospitals, etc?
  gentrification: Is the suburb in transition, are people moving into the area, are people renovating, is there a café society, is it a beach suburb etc?
  infrastructure: Are there plans for new infrastructure like bypasses, new roads, new bridges, shopping centres or is council undertaking beautification?

We never overlook the importance of proper research because it helps us to determine what type of dwelling is in high demand in a particular area.  For example if we should be concentrating on luxury homes, duplexes or boutique apartment developments. 

Real Estate Investing market tools like census and property market reports generally give a snapshot of both the historical data and individual sales history data.  Depending on where you reside the following sites are a great place to start your research; DQNews in America, Mouseprice in the UK, Residex and RPdata in Australia and QV in New Zealand.   Local council websites are full of great information too.  While these are useful, we also consider real estate auction clearance rates and property cycles.

Once we’ve selected two or three locations we get familiar with the area by driving around the suburbs, checking out what other property developers are building, and then talking to a few Real Estate Agents and Property Managers. If possible we also attend property auctions. We want to get a feeling for what’s possible and the demand in the area.

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Would you like help getting started on your own small real estate development project? We have an online Real Estate Development Home Education Learning Program (RED HELP) with step-by-step instructions. You can now learn in the comfort of your own home and at a time that is convenient to you. To find out how we can help you get started on your real estate development project click here

 

Property Development can be risky especially for first-timers however there are great profits to be made but in order to tap into these profits you need to know what you’re doing.  For peace of mind why not become a member of the RED Club where we send you easy to follow step-by-step online eLessons of the entire real estate development process that we use to fast track our wealth creation.

Join Now - www.RealEstateDevelopmentClub.com

Click here and we'll show you how

STEP 2: CHOOSING A GREAT PROPERTY DEVELOPMENT SITE

Choosing A Great Development Site - www.RealEstateDevelopmentClub.com
A typical blue backyard development site that we look for

Finding the right location to invest in is only the first step.  Next we’re after a site that has great development potential.  We start off by looking at typically about 100 sites. 

This doesn’t mean we physically go out and inspect 100 properties, it means we search for them via the internet, newspapers, agents, word of mouth and ask people in the know.  We make further enquires on about 10 percent of these and probably only ever end up buying one. 

Depending on where you reside here are some great websites to start your search and help you compile a short-list: Realtor (in America), Property Finder (UK) Real Estate (in Australia) or Real Estate (in New Zealand).

We’re after sites with blue backyards or really big green backyards that allow for development from luxury homes to duplexes through to small boutique apartment complexes.  This can be a vacant site but is more commonly one that has an older dwelling that can be demolished. We're also after corner sites that have easy access and allow for multiple opportunities including land subdivision. To have a closer look at one of our corner sites click on the link below:

 

Adrian and Amber's Corner Development Site

We’re also looking for sites that we can purchase under market value from motivated sellers and that have more than one twist.  By twist we mean it should have a number of different development possibilities where we can add value.  We look for hidden gems and make friends with problems but not nightmares. 

It all depends on the zoning though - we need to determine what the local authority will allow on the site. We search the website of the local council where most allow you to download the DCP (Development Control Plan) and LEP (Local Environment Plan) and if we need to, we talk to their town planner directly.  Once we’ve identified council requirements this narrows down our search considerably so we don’t end up wasting valuable time looking at sites that just don’t allow for development. 

Once we’ve found a potential development site we quickly do some simple BOE (‘Back Of Envelope’) calculations using our 'Real Estate Development (RED) BOE Calculator' to check whether the site is within our ballpark of profitability and suitable for further investigations. 

If the BOE figures are successful we then visit sites for a full assessment and compile a short-list based upon our development criteria and the local town planning regulations.  When we assess a site we keep in mind who our market is, what type of people would want to live in the area and in what type of dwelling.

To help us quickly assess whether a site is suitable for development or not, we use our 'Real Estate Development (RED) Site Appraisal Checklist'. We're always looking for sites where we can add value and signs that may indicate development opportunities. We may even need to do further investigations before we can purchase with confidence.

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Are you looking for a practical, easy to follow online Real Estate Development Home Education Learning Program? Do you want to learn more about small real estate development and learn in the comfort of your own home and at a time that is convenient to you? Why not join the RED Club and receive ongoing support and step-by-step instructions to help you fast track your wealth creation. To find out more about how you can get started in small real estate development click here...

 

Are you a real estate investor who would like to get started in Real Estate Development and create your own capital growth without having to wait for any upswing in the property market? Take your real estate investing to the next level and join other like-minded budding property developers by becoming a member of the RED Club where you receive easy to follow step-by-step instructions and access to us, our RED Forum plus all the tools and resources we use.

Join Now - www.RealEstateDevelopmentClub.com

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STEP 3: TESTING DESIGN CONCEPTS AND INITIAL FEASIBILITIES

Testing Concepts and Feasibilities - www.RealEstateDevelopmentClub.com
Adrian preparing freehand schematic concept sketches

When we’re satisfied we’re able to develop the site and we’re happy with our initial ‘back of envelope’ calculations we come up with a design brief using our 'Architectural Design Brief Template' plus an initial concept using our 'Concept Design Checklist'.  This is where we put pencil to paper and do some rough sketch layouts (we may even come up with a number of different options), using the Local Authority Planning Codes and Policies.

New developers usually use a guide such as our 'Architectural Design Process Guide' to get familar with the entire design process. Archizen Architects uses a simple 6 step design process but generally, the land remaining after allowing for required boundary setbacks, car parking and manoeuvring and open garden landscaped space will determine the area available for the proposed building. This together with the preferred unit size (determined through our Marketing Research) will indicate the number of units that can be accommodated on the site. To get the maximum benefit out of a site a competent architect is generally engaged to create these initial schematic concept sketches.   

As soon as we’ve finished our concept sketches we fine-tune our ‘number crunching’ by undertaking a proper financial feasibility study.  The purpose of a real estate development feasibility study is to establish whether a project is a viable proposition or not.  We use property development feasibility software that allows us to work backwards to evaluate what the land is worth to us with development approval – this is called the Residual Land Value.

Using Worst Case scenarios (being conservative in the values that we input) we include anticipated time scales, all costs including consultants and construction costs as well as likely end sale values and our minimum profit margin of 20% plus a contingency allowance of about 5-10% (depending on circumstances especially site conditions). IT IS CRITICAL THAT THIS STEP IS PERFORMED CORRECTLY.

For our real estate development financial feasibilities we use 'FeaStudy' as it is, in our opinion, the most user-friendly property development software for real estate and investment proposals that we've used and the most appropriate for our use in smaller-scale residential development. In considering the time it saves us in preparing a Real Estate Development Feasibility Report, in our opinion, Feastudy 6.0 Professional is a comparably inexpensive tool compared to the important job it performs.

The feasibility study is also invaluable when putting together a JV or Loan Application Proposal as mortgage lenders or other investors can instantly see whether our real estate development project will be successful and the level of risk involved.

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If you would like some extra help - you can register for our practical, easy to follow online Real Estate Development Home Education Learning Program.  RED Club members receive easy to follow step-by-step instructions and access to our Member’s-only Website which is packed with heaps of real estate investing goodies. To find out what other benefits RED Club members get click here...

 

Do you want to learn how to become a successful Property Developer but are inexperienced and don’t know where to begin?  Perhaps you're looking for extra support and the opportunity to find a RED buddy to learn with and bounce ideas off. Become a member of the RED Club and we’ll send you eLessons with all our real estate insider trade secrets and shortcuts and to make it even easier you’ll get to use all our tools, templates, calculators and checklists.

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STEP 4: SITE CONTROL AND ACQUISITION

Site Control and Acquisition - www.RealEstateDevelopmentClub.com
Another typical blue backyard development site

Once we’ve determined that there aren’t potential restrictions on the land that could prevent the project from proceeding and we’re confident that it will be a viable property development (after testing our concepts and conducting a proper feasibility) we try to tie-up or control the property as soon as we can.

After we’ve let the agent know we’re interested in the property we prefer the seller to start the negotiations.  Wherever possible we like to purchase from motivated sellers. There are simply too many opportunities and it’s unnecessary to waste valuable time trying to negotiate with unmotivated vendors.

One of the most important skills of a property developer is being able to negotiate great deals so initially, if you’re not good at negotiating you may want to consider a Buyer’s Advocate.

We usually start our offers below the residual land value that we calculated in our real estate development feasibility study.  While the final price is important we also look for value, which may mean having our savvy property solicitor come up with favourable terms and conditions. Our offers are typically in writing using our 'Offer To Purchase Real Esate Template'.

Like most real estate investors and developers we love to grab a bargain however if it’s the right site and the numbers prove we’ll turn a descent profit we’re always prepared to pay a fair price, based on our residual land value… which is what the land is worth to us.  Though the best scenario is always a win/win situation for both parties.

We usually also have our property savvy solicitors come up with 'favourable terms and conditions' in our 'contract of sale'.

WE NEVER GET EMOTIONAL AND ONLY PROCEED IF THE NUMBERS WORK.

There are several ways to control a property development site. Here are a few that we consider:
Delayed settlement. This is probably the most common way of controlling a site.  Normally, but not always, a higher purchase price is paid in exchange for a delayed settlement.  It is our aim to have our development approved during this time which gives us the ability to on sell the property at a higher price with the development approval in place or start our development soon after settlement saving on interest payments and other holding costs.

Joint Ventures with the Land Owner. Typically, the Owner may agree to exchange his land for housing unit(s).  An independent Valuer/Appraiser is normally engaged to determine both the land value and the new housing unit value and if necessary monetary funds are exchanged if they are not of equal value.  We find Joint Ventures are a great way for newcomers to get started as it allows you to share part of the profits while sharing the risk.

Property Options. An option is an agreement with the Owner where, for a relatively small non-refundable fee, a property developer has the right, but not an obligation, to purchase the property by a pre-determined date, by which time it is hoped that a Development Permit has been approved.  Options allow property developers to “lay by” a property and buy it at a later time if they wish to do so. 

If we decide an Option is the best way to proceed to enable us to control a site we would send the Vendor our Letter of Intent To Purchase Under Option before we went to the expense of having our solicitor prepare a Formal Option Agreement. This outlines the basic terms upon which we would be prepared to purchase the property. The terms are not complex and we mention in this that we expect additional terms to be incorporated into the Formal Option Agreement.

Vendor Finance. Vendor finance is an agreement where the owner of a property offers finance to the purchaser. In short the person that owns the property you which to buy is known as the “vendor” and the vendor lends you the deposit so that you can buy their property from them. As distinct from conventional mortgage finance, here the purchaser never legally owns the property until all the money owing to the vendor has been paid. 

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Do you want to get started in small real estate development but don't have the time to attend workshops and seminars? Then why not register to become a member of the RED Club where you get access to our online Real Estate Development Home Eduation Learning Program. To find out how you can receive one-on-one hand-holding and support from us along the way click here...

 

Do you have some experience in Real Estate Development and want to learn how to improve your performance?  We understand the fears and frustrations that even experienced property developers can face so why not consider becoming a member of the RED Club and find out, in detail, how we’re able to minimise our risk and maximise our profits so you're able to keep more money in your pocket.  

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STEP 5: DEVELOPMENT PERMIT APPLICATION

Development Permit Application - www.RealEstateDevelopmentClub.com
Building relationships with RED consultants

Having secured control of the site it’s now time to assemble the project team that will design and document the proposed property development in accordance with the requirements of the Local Authority, the design brief and development mix.

We use our 'Development Permit Application Checklist' for this step because it helps us to save both time and money. Depending on the complexity of the project, and besides our property accountant and lawyer our RED consultant team usually consists of:

 

Architect (to prepare drawings for council submission - obviously because Adrian is a Registered Architect we use our own architectural firm (Archizen Architects) for this. A great design can not only save you money but can add massive value to a development project and we use an easy-to-follow 6 step design process. For our latest Media Articles, Editorials, Portfolio, Featured Projects and Testimonials.

Town/Land Planner (who reports on the compliance of the proposed design with council’s planning regulations and guidelines and can answer their queries)
Civil/Hydraulics/Structural Engineer (to document all engineering works)
Land Surveyor (to prepare a land contour survey)
Landscape Architect (many Local Authorities are now requesting details of the proposed site landscape)
Quantity Surveyor (to estimate the building costs and prepare building depreciation schedules)
Finance Broker (who understands and can source construction finance)

Other possible team members, such as acoustic and traffic specialists, may also be required by the Local Authority to submit a detailed report with the Development Permit Application. We recommend keeping all your experts details handy using a Real Estate Development (RED) Rolodex.

Having a written agreement with each of our consultants is the simplest method we know of minimizing disputes. The agreement we typically use describes, among other things, the basis on which fees are calculated, the fee structure and services to be provided at each stage and the method by which we agree for the consultant to proceed to the next stage.

An architect will then draw up plans for submission to council (these aren’t the detailed plans required for construction) that fit in with the planning regulations and the local authorities development guidelines, using a contour survey prepared by the land surveyor. The town/land planner is often involved at this initial stage, providing advice on the overall planning policies of the Local Authority.

Today most architects use sophisticated 3-D CAD software to compile drawings as it allows for ‘virtual’ buildings to be created. This system has the added benefit of creating fly-throughs and 3D images (also useful for the sales process and submission to Council) as well as documentation of the building for the Development Permit Application and for Construction by the Building Contractor.

We normally tailor our designs and standard of finishes slightly above the requirements of our target market, so they stand out from other property developments on the market. This way our projects have the potential to attract a premium rental and sale price plus it makes it a lot easier to sell, if we need to.

The Local Authority will assess the submitted Development Permit Application for its impact on the neighbours, local community and the environment, typically including:

adverse impacts on air, water, and noise levels
amount and type of waste the project will generate
other areas of concern include historic districts, parks, open space, trees, and wildlife habitats
privacy on neighbours
traffic generation
overshadowing of neighbours
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Help is at hand! Become a member of the RED Club and you’ll receive access to our easy to follow step-by-step online Real Estate Development Home Education Learning Program (RED HELP) plus get access to us and all our resources, tools, templates, calculators and checklists. To find out how we can help you get started in small real estate development click here...  

 

If you’re relatively inexperienced or new to Real Estate Development, there can be many pitfalls and traps along the way.  Newcomers can get themselves in all sorts of trouble if they don’t know what they’re doing.  Become a member of the RED Club and receive one-on-one hand-holding as well as receive all the latest Real Estate Development offers, discounts and bonuses on our Member’s-only Website.

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STEP 6: PRE-CONSTRUCTION & FINANCE

Pre-Construction - www.RealEstateDevelopmentClub.com
Adrian preparing drawings for council approval

We prepare and submit a professional-looking ‘Construction Finance Application’. Our finance application would typically include our current financial and market feasibility studies. 

What we’re aiming for is, to have the Development Approval increase the value of our land so we end up with more options and what we call a “Development In A Box” or "Ready To Go Development".  So if we choose to, we can on sell the land and Development Approval, all ready to go, with a property developer’s profit margin built in. 

Should things not go as planned or market conditions change, obtaining the Development Approval also forms part of our exit strategy.  When we receive our Lenders ‘Letter of Offer’ our legal and financial advisers look it over to ensure that the conditions and loan type suits our circumstances.

While the application for finance is being assessed by the Lending Institutions, the architect and the engineer(s) can complete the detailed construction drawings, specifications, schedules and finishes to comply with the local building code. This is where your architect will use the drawings that were submitted to council and begin to add more detail for construction like bathroom and kitchen layouts.

Even though Adrian is a Licensed Builder and has built several of our own projects we sometimes prefer to outsource the construction stage and would typically invite 4 or 5 Building contractors to submit a written quote. We provide them with the detailed architectural and engineering documentation, including the drawings, specifications, schedules and finishes. We request that their written quotes include a fixed price quote and a completion date.  Building Contractors are engaged to deliver a final building to an agreed price, specification and hand-over date.

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Would you like access to our practical, easy to follow step-by-step online Real Estate Development Home Education Learning Program?  To register to become a RED Club member and join our group of like-minded budding Property Developers click here...

 

Do you already own properties but are frustrated with the rate at which your portfolio is growing? Become a member of the RED Club and get a bird's eye view of how we're able to significantly increase the value of our property portfolio through small Real Estate Development.

Join Now - www.RealEstateDevelopmentClub.com

To find out more click here...

STEP 7: CONSTRUCTION

Construction - www.RealEstateDevelopmentClub.com
New luxury home development on a single lot

Finally! The building contractor is on site and the project is underway. It really is an amazing feeling when you see your project start coming up out of the ground.

The construction phase is usually the most expensive stage therefore we continue to carefully manage the project during this stage.  We use our 'Building Cost Chart' to help us stay on track of the building costs and we schedule regular site meetings with our Building Contractor, typically every week or two, to discuss any queries or potential problems and we make sure our Building Contractor has fulfilled their Occupational Health and Safety (OHS) obligations fully.

We pay our Building Contractor progressively, either monthly or at the completion of each scheduled construction stage, using draw-downs from the construction loan. It’s not unusual for the Building Contractor’s claim for completed works to vary from their schedule so it’s important not to make payments in advance of the value of the completed work.

Some property developers appoint an independent building inspector to review the quality and amount of work at each progress payment stage as this sends a message to the Building Contractor to be on the ball. This could be your Architect or you can find a good Building Inspector from the Master Builders Association in your area.

We try not to make changes after construction has started, as they usually end up being costly and delay the completion date. If changes are necessary to the original contract scope of works or finishes, we request the Building Contractor advise us in writing what the variation to the original contract sum and the delay time will be so we can approve it BEFORE he makes any changes.

Remember that it’s the Building Contractor (not the Owner or the Architect) who represent themselves as the expert on erecting buildings. Therefore it’s never a good idea to tell the Building Contractor how to build the building instead we instruct the builder as to the desired result to be achieved, not how to achieve it.

Before the handover at final completion, we have a joint inspection of the project with our Building Contractor with the architect or building inspector present. A list is made of all the defects and problems that need to be fixed by the builder before the building is officially handed over.

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Would you like one-on-one hand-holding support? For peace of mind, why not become a member of the RED Club where you can access our practical, easy to follow step-by-step online Real Estate Development Home Education Learning Program (RED HELP). To find out all the great benefits the RED Club members get click here...

 

Are you a real estate investor who would like to take the next step and discover how to acquire property at wholesale prices so you can build wealth faster? Become member of our RED Club mentoring program and you’ll get to look over our shoulders while we show you step-by-step how we’re able to create successful property developments and build a sustainable RED business.

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STEP 8: POST-CONSTRUCTION

Post-Construction - www.RealEstateDevelopmentClub.com
New boutique housing development

Hurray! Construction is finally complete and its now time to celebrate and enjoy the benefits that Small Real Estate Development has to offer. Once construction is complete there are usually three options available to property developers:

  • sell all their properties
  • hold all their properties
  • hold some and sell some of their properties

Many property developers decide to sell for quick profits and often engage a surveyor to prepare a Subdivision Plan if the properties are to be sold off individually.  If they decide to sell they usually have a well-organized marketing strategy. They prepare marketing materials such as brochures, floor plans, artist impressions, Body Corp projections and rental appraisals.

Whereas our strategy is to hold as many properties as we can for the long-term – taking full advantage of any tax depreciation benefits and the expected capital growth because we’ve developed in well located areas.

Designing a little above the market means we’re generally able to attract tenants more easily and achieve above market rates and yields. We engage good property managers to look after our real estate investments who are willing to do more than just collect the rents because, as much as we enjoy Small Real Estate Development, we’d rather not be woken up in the middle of the night to fix things like broken taps.

But above all, the principal reason we hold onto our properties is that we’re able to tap into the increased equity by refinancing so we can repeat the whole process over again.  It means as wholesale property developers we’re able to increase our net worth faster whereas the retail real estate investor generally has to wait for the typical growth cycles to occur before they’re able to realise a profit.

Below is a simple graph to demonstrate the equity we could typically expect from each new townhouse in a small complex when we’re developing (with a minimum projected 20% profit margin).

 
WHOLESALE
DEVELOPER
RETAIL
INVESTOR
Market Value
$500,000
$500,000
Less Typical 20%
Development Profit
$100,000
$0
Less Typical Marketing Costs
$20,000
$0
Purchase Price
$380,000
$500,000
Typical Purchasing Costs
$0
$20,000
Total Cost of Property
$380,000
$520,000
Total Net Equity
$120,000
-$20,000

The last thing we make sure we do is take out all the necessary property insurances and ensure we have good record keeping.  We use ‘POSH’ to track the performances of our property portfolio and ‘MYOB’ for all our bookkeeping.

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Why not receive ongoing one-on-one coaching and support from us?  Join our RED Club community and access our practical, easy to follow online property development course with step-by-step instructions and support. To find out how to become a member and how we can help you get started click here...

 

Are you passionate about real estate investing and development and want to accelerate your learning curve so you can get started on your very own small property development project or build a sustainable RED business?  Be careful Real Estate Development can be so exciting and rewarding it can become addictive. Why not become a member of our RED Club mentoring program where we’ll help you along the way so you can feel confident you’re on the right track?

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Click here and we'll show you how

 

THE EASY WAY TO DO ITwww.RealEstateDevelopmentClub.com

We genuinely like to see others do well and our hope is that, by sharing our story with others, this may motivate you to get started on building your own Real Estate Development (RED) business. And you don’t have to be a Registered Architect or Licensed Builder to become a successful Property Developer or build huge sky-scrappers to make multi-million dollar profits but you do need to learn the proper process, obtain professional advice and TAKE ACTION.

As business owners and proud parents our most important asset is time and as much as we wanted to be actively involved in real estate development we knew we didn't want to be traditional real estate developers who worked long hours trading their time for money. 

Instead we looked at the big picture and applied the same entrepreneurial skills we had developed in our architectural practice (Archizen Architects) to small property development.  Real estate development had to contribute to our ultimate goal of achieving financial freedom and giving back to others. 

We knew that when we achieved our ultimate goal it would give us more choices so we could start to live our dream lifestyle according to our core values and with passion and purpose.

We wanted to reach financal freedom much faster doing something we enjoyed.  One of the smartest things we ever did was to have the courage to TAKE ACTION and write our own destiny. We first learnt how to do it, created an easy to follow step-by-step plan and finally we just did it.

If all of the above seems just too hard, there is an easier way. You can join our RED Club community designed for budding real estate entrepreneurs and get access to our online Real Estate Development Home Education Learning Program (RED HELP) where we guide you along the way and expand on each step in the real estate development process that we use. You'll get to download the tools and templates we use plus you get access to us where we can help answer your questions, make suggestions, and point you in the right direction. And you’ll receive everything in easy to understand ‘Layman’s Terms’ - Plain English, not all that technical jargon. 

Authors Adrian and Amber Zenere with Publisher Darren Stephens at their May 2009 Book Launch held at the Q1 Building Gold Coast!

How can I purchase your new book 'RED Armchair Entrepreneurs - RED Hot Property Profits'?

ACF

To get a signed copy simply visit www.REDarmchairEntrepreneurs.com or you can visit the RED Club headquarters located at: Studio 848 King Georges Rd, South Hurstville NSW 2221. For more information and directions click here... We'll also donate 10% of the profits from your sale to the Australian Conservation Foundation (ACF).

I already have a development project or one in mind, can I become a Joint Venture partner with you?

All our Gold members have the opportunity to Joint Venture with us. This is a great way to get started in property development. To find out more about becoming a GOLD member and Joint Venture partners with us click here... To view RED Club GOLD members' Kathy and Stuart's townhouse project click here...

I would like to engage Archizen Architects for one of my projects however my project is not located in Sydney, can I still do this?

Yes! We can provide members and non members with architectural services all over Australia. To view the concept drawings and elevations Archizen provided for Kathy and Stuart's townhouse project located in Mackay Queensland click here...

What resources do you use that you find are helpful?

There are a lot of real estate investing products on the market that can help you get started. We've listed below some of the resources that we've used and found to be helpful:

  • We attend regular personal development workshops such as The Mental ToolBox because they continually help us to identify and eliminate our emotional blockages to success and help us to keep going to new levels we never thought were possible. RED Club GOLD Members and a friend get to attend The Mental ToolBox three-day workshop (valued at $1,900) absolutley FREE as our guests because we know the importance of getting your mindset right first.
  • Finance strategist and Property Investor Bill Zheng helped us enormously. Bill runs a multi-million dollar investment advisory service and during his workshops we learnt by simply changing our thoughts we could attract an abundance of wealth. RED Club GOLD members receive Bill's twin pack workshop DVD's (valued at $198) FREE.
  • To help us make sense of the different types of entities and how they work we used a fantastic resource written by Dale Gatherum Goss called ‘Trust Magic’.  It's written in simple terms so even a beginner can understand it.
  • For our financial feasibilities we use 'FeaStudy' as it is, in our opinion, the most user-friendly financial feasibility software for real estate development and investment proposals that we've used and the most appropriate for our use in smaller-scale residential development. In considering the time it saves us in preparing a Development Feasibility Report, in our opinion, Feastudy Professional is a comparably inexpensive tool compared to the important job it performs. RED Club GOLD members receive Feastudy Free (valued at $770).
  • We use ‘POSH’ software to track the performances of our property portfolio. Our RED Club community receives a 10% discount.
  • It is important in real estate development to have good record keeping. So for all our bookeeping needs we use MYOB software - they have a FREE 90 Day Trial
  • For additional architectural and building resource links click here...

 

We've also put together literally dozens of "cheat sheets", sample agreements, letters and checklists." This makes it super easy for our RED Club members because all they have to do is customise them to suit their particular circumstances which can literally save them hundreds of hours.

If you would like to know more about our Sydney architectural design practice 'Archizen Architects', located at Studio 848 King Georges Rd South Hurstville NSW 2221 click here...

Click on the following link to find out more about Adrian Zenere

Click on the following link to find out more about Amber Zenere

If you do decide to embark on building a sustainable RED business we encourage you to respect our environment using holistic architecture and responsible environmental design principles so future generations can continue to enjoy our wonderful planet!

To view some of our media articles click on the images below:

Home At Yellow Home Magazine Home Magazine Australian Property Investor Australian Property Investor Luxury Home Design Lifestyle Adding Value Adding Value Adding Value

To view more media articles click here...

 

How can I get more information?

We suggest that beginners start with our book 'RED Armchair Entrepreneurs RED Hot Property Profit$'. To get you copy simply visit www.REDarmchairEntrepreneurs.com or you can visit the RED Club headquarters located at: Studio 848 King Georges Rd, South Hurstville NSW 2221. For more information and directions click here...

If you would like to join the RED Club and access our easy to follow online Real Estate Development Home Education Learning Program (RED HELP) simply click here...

 

View our REDDreport Archives

To Download the PDF's below click here...

The Benefits of Real Estate Development How To Minimise Real Estate Development Risk 8 Top Tips For Getting Started In Real Estate Development

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ACF

Adrian and Amber support the Australian Conservation Foundation (ACF)

Our hope is that you’ll take all this information here, in our FREE WEBPAGE REPORT and encourage others to explore the amazing opportunities that Small Real Estate Development has to offer because it wasn’t until we shared what we’d learnt with others, that we personally found true wealth.

While there are no guarantees to make money in small Real Estate Development if one uses a proven system, a great team of advisors and takes knowledgeable and calculated risks there certainly is the OPPORTUNITY.  Don’t forget to enjoy the journey and celebrate your success along the way!

Good luck!

While we’re happy to receive email queries, we don't guarantee that we will get back to you immediately as we now dedicate most of our time to our RED Club members.  Please check our FAQ’s page first as this has the answers to the most commonly asked questions.

Wishing you much success!

Adrian and Amber Zenere

P.S. If you would like us to help you get started in small real estate development and access our practical, easy to follow step-by-step online Real Estate Development Home Education Learning Program (RED HELP) simply click on the link below to find out more.

Join Now - www.RealEstateDevelopmentClub.com

To find out more click here...

Adrian Architect, Builder and Project Manager Adrian Architect, Builder and Project Manager Adrian Architect, Builder and Project Manager
Adrian Supervising Excavations Adrian Overseeing Pool Construction Adrian as Builder & Project Manager
Real Estate Investing For Beginners Through Small Property Development

 

 

                                          
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