How To Keep Your Property Development Pipeline Flowing
Last updated 18/08/2019
So you’ve made a start in property development, beginning your journey from amateur to expert.
Now it’s time to look at how to keep your property pipeline flowing and meet your goals in record time.
That’s where our handy guide can help!
Money will always be one of the most important tools in your arsenal as a property developer.
To make sure you can invest in the property development opportunities that will keep your property development pipeline flowing, you’ll need to:
- Check you can afford what you’re paying - you can’t sink funds you don’t have into a big project and expect to walk off scot free.
- Make sure the risks you take are calculated ones, and build up your portfolio as your money allows. You could start with flipping or even buying off plan or off market property if you need a potentially cheaper strategy to begin with.
- That leads onto the next point - always re-invest enough into your business that you can finance any unforeseen offers that are just too good to pass up.
- Determine the form of property development finance you are most likely to secure.
Make sure you use your money wisely.
Don’t waste it on unnecessary things like design frills, but be willing to spend money that will save you money in the long term - like employing an excellent property savvy accountant to take the stress out of balancing those books.
Once you’ve developed your first property it’s all too easy to get caught up in the rush and want to start creating multiple new developments at once.
But you might be tied with a lot of capital in your first property development, so best make sure you’ve sold it or begin to rent it out before you dive into your next project.
Once you’ve secured some profits, having multiple property development projects on the go is actually a great idea to keep your property development pipeline flowing.
Having multiple property developments will help you diversify your property portfolio, spread the risk and give you greater financial security.
Keep your eyes peeled
Even if you’re satisfied with the returns your property portfolio currently brings in, you've gotta keep your eyes peeled for new property development opportunities. They're vital if you want to keep that property development pipeline flowing.
- Scan auction brochures
- Research the latest market trends and legislation
- Register with estate agents or property sourcers
- Read our guides on sourcing property development opportunities
Doing your research will increase your chances of snapping up a property you wouldn’t have noticed before.
Maybe even for a bargain price!
Networking can help you in numerous ways.
Whether you manage to build a relationship with someone who has ‘been there and done that’ and can teach you all the tricks of the trade or find someone to keep an eye out for good deals.
Network with everyone from solicitors, councillors, architects and builders, to accountants, estate agents and lettings agents.
They’ll probably have great knowledge of upcoming developments and may even point you to newcomers on the market.
Just taking the time to reach out and share your details over coffee or drinks and nibbles could land you the tip off you need to keep your property development pipeline flowing.
Read more of our blogs to stay informed on all things property!
Please note, this blog post is not to be considered as investment advice. We recommend you seek independent financial advice and conduct your own due diligence before making any investment.