64 – How to generate regular property development deal flow

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By Justin Gehde. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
Discover how property developer Rob Flux lost his property portfolio then rebuilt his wealth through developing property. He leveraged all the lessons he had learned from investing in property to come back bigger, faster and better. In this conversation we talk about the importance of mindset and tackling problems, return vs risk and time, and how he runs his business to ensure regular deal flow and project completions. Rob has enjoyed two parts to his property journey, his first part was as a property investor, buying and holding properties. Then he pretty much lost it all and had to start again. In part 2 of his career, he used development as a way to quickly regain his lost wealth. Not only has Rob completed a number of development projects along the way, but he has grown one of Australia’s largest networks of people interested in property development. In this conversation we talk about the importance of mindset and tackling problems, return vs risk and time, and how he runs his business to ensure regular deal flow and project completions. To succeed as a property developer you need a growth mindset Keep an ear out for Rob’s view on profit sharing. I’ve been getting lots of enquiries about the mentoring program so obviously plenty of people have decided this is the year they are going to get started on becoming a developer. If you’d like to find out more about how to develop safely and profitably then email me justin@propertydeveloperpodcast.com and I can send you some information. Lessons for property developers I trust you enjoyed that chat with Rob Flux. I think we covered some good ground, and there was plenty of gold for you to consider. Here’s three things I took away from our conversation: 1. To succeed as a property developer you need a growth mindset One thing is for certain on any development project, there will always be problems to solve. Some big, some small. The people who succeed in life are ready to tackle the problems and not let them become a barrier. They see things as on the way, not in the way. I like to try and embrace the challenges and see them as opportunities to learn and grow. The size of the problems you are prepared to tackle will be an indication of what you can achieve in life. So are you ready to tackle little problems or big problems? 2. Reconsider how you view profit sharing It is very common to see the bottom line in a feasibility and want to keep it all, but as the saying goes 50% of something is better than a 100% of nothing. By not being prepared to share the profit and the risk, you may not get to do a project at all. Or you may be limited by the number of projects you can tackle. So maybe a reasonable profit sharing structure might help you and other people get further ahead in life. 3. What sort of return do you really want from property development projects? I really enjoyed Rob’s insight about being prepared to accept a lower return, in exchange for less risk and shorter timeframes. Maybe doing two projects that net 7% in one year with little risk is better than doing one project that gets 20% return in 2.5 years with a lot more risk? Maybe a combination of short, low risk, low return projects mixed in with higher return, higher risk projects might be a way of smoothing out the returns while balancing the risk. It all depends on your risk appetite. Alright, I hope you enjoyed that conversation with Rob Flux, if you did, then you might want to go back and take a listen to my discussion with property developer Davina Wong in episode 59 Davina has used some creative ways to get deals across the line including getting streets rezoned. She’s had to deal with plenty of challenges along the way and shared how she approaches problems. There’s plenty of great insights in that chat with Davina so be sure to head back to episode 59 and take a listen. Okay, don’t forget if you are interested in learning how to develop property then ema...

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