72 episodes

A show dedicated to inspiring property developers to bigger and better things, whether you are doing a 4-unit site or a boutique apartment block, there will be something for you to learn and use.

Property Developer Podcast Justin Gehde

    • Investing
    • 4.7, 60 Ratings

A show dedicated to inspiring property developers to bigger and better things, whether you are doing a 4-unit site or a boutique apartment block, there will be something for you to learn and use.

    72 – Lessons from large scale property development projects

    72 – Lessons from large scale property development projects

    Large property development projects have unique challenges, but some of them are familiar to what can happen on projects of any size. I'm talking with someone who has experience with projects that range in size and sector.



    As I record this episode, Melbourne has started stage 4 lockdowns to prevent the spread of COVID19, which means many businesses are closed and movement is severely restricted. So the kids are home from school and we don’t get to go out much. This certainly has been a strange year, and I hope you are managing to negotiate it as best you can.



    Fortunately, it looks like the residential construction sector will still be able to operate although at much lower levels which means work should continue on my site, but perhaps at a slower rate. I’m still waiting to find out exactly what it means from the builder. Otherwise, we had been making reasonable progress on site with earthworks underway to prepare the levels for the drains and foundations. I've posted a video update on Facebook and Insta if you want to check out how things are progressing. We have been having some issues with wet soil due to winter weather and that has slowed things down a little, but we will work through that. Not much to report on my other project as we continue to work through the construction documentation.

    "It doesn't matter what size the project is, each line item will have some risk associated with it."

    Don’t forget that if you are interested in learning how to develop, we have the mentoring program that is available to guide you through the development process and help you develop safely and profitably, email me, justin@propertydeveloperpodcast.com if you want to find out more.



    And thanks to the people that have sent me some amazing emails over the past few weeks thanking me for producing the show, I am very grateful for your support and I really appreciate you taking the time to let me know. And thank you for listening in. Without you there would be no point to the podcast. We’ve still got so much ground to cover with the show so keep listening as we learn the lessons from people across the industry.

    Today's guest - James Paver from Avenor

    Okay, on to today’s guest, James Paver from Avenor. Avenor is an Australian property development, investment and services firm with expertise in the initiation and delivery of commercial, residential and major mixed-use projects across the country. James and his team have worked on a range of deals, large and small, so he brings insight into what makes a successful project, along with the lessons learnt from getting projects started and completed.



    In this conversation we cover the importance of community engagement, what to do when things don't go to plan and what large and small projects have in common. Keep an ear out for what James thinks that smaller projects can learn from larger ones.



    I think you will enjoy this conversation and I started off by asking James what food he would eat until he was sick...

    Lessons for property developers

    I hope you enjoyed that chat with James. It just goes to show that it doesn't matter what size project you are working on, many of the challenges and issues are the same. Here's a couple of things I took away from my conversation

    1. Expect challenges no matter the size of the development project

    It seems that it doesn't matter what size project you work on, whether it is a 45 story tower or a 4 unit townhouse development, you can expect to face challenges getting a planning permit. Many issues seem to be universal like dealing with mercurial councils, local objectors and the shifting sands of property markets.

    2. Identify and manage your risk

    One comment that James made is that it doesn't matter whether it is...

    • 44 min
    71 – How fragmented investing can help property developers to grow

    71 – How fragmented investing can help property developers to grow

    How can fragmented property investing help property developers grow their business? It is a fledgling sector of the property industry that offers an interesting model to get people involved with property and an alternative funding model for getting projects completed.



    Before we get to discussing fragmented investing, here's a quick update on what I've been up to. I’m doing fine, just dealing with Melbourne going into lockdown for a second time due to corona virus which is a bit frustrating but at least the building industry is continuing to operate at this stage, so construction work can carry on, which is good as we are just starting construction on my townhouse project. In fact the builder is on site this week doing the initial set out work before they start doing the early site works. It’s exciting to see things happening on site after so many years of working on this project.



    On my other townhouse project, work continues on the documentation and I have been exploring options for who might be best to build it. I’ve also been in discussions with the local council about changing the cross over alignment from a long convoluted path to one that is much shorter and efficient. Hopefully that is fruitful.



    Otherwise, it is a strange time in the Melbourne property industry, with buyer activity subdued and a sense of apprehension in many sectors, but the market will bounce back it just depends on how long it takes.



    Don’t forget if you are interested in learning how to develop, drop me a line at justin@propertydeveloperpodcast.com to find out more about the mentoring program that is available to help you learn how to develop safely and profitably. Congrats to David who got started this month.



    And a reminder you can also catch me on Insta and Facebook for all my latest project pics and videos, industry news and other fun stuff. You can also post a comment on iTunes if you are enjoying the show, and of course all the past episodes of the show can be found at www.propertydeveloperpodcast.com



    Okay, on to today’s guest, Darren Younger from Bricklet. This is a discussion about fragmented property investing and how it can benefit property developers. What is fragmented investing you ask? Well listen in and find out.



    In this discussion you will discover how developers can fund their projects using the fragmented model, how you can save time and money using Bricklet and what it means for potential projects you may have.



    Keep an ear out for how you could use fragmenting as an alternative funding solution for your next project.

    Lessons for property developers

    Here’s a couple of things I took away from the discussion.

    1. Could a different funding model help you increase the velocity of your property development projects?

    Getting your project funded is an ongoing challenge for many developers, and as lending environments tighten it might be worthwhile looking around at what other models you have available to get your projects finished. Alternative models may also help you to complete projects quicker and increase the velocity at which you operate.

    2. Could keeping a share of your completed property development project help with your wealth accumulation strategy?

    Often developers sell up all their stock, realize the profit and then roll over into the next project, leaving behind the future capital growth of their finished product. But what if you could keep a portion of that stock and let it grow over time, how could that help you grow wealth over the longer term? It might be worth considering…



    Okay, if you enjoyed that chat about fragmentation, then you might want to go back to episode 65 and have a listen to my chat with Fabian Demarco ab...

    • 29 min
    70 – Working through a crisis to achieve property development success

    70 – Working through a crisis to achieve property development success

    Responding to the COVID19 pandemic is testing many property developers, with uncertainty sweeping across property markets. To help you figure out what you should be doing in this strange time to ensure continued success, I am continuing my discussions with past guests about how property developers can best respond to the COVID19 pandemic.



    In this episode I speak with Don O’Rorke from billion dollar property company Consolidated Properties Group. Don featured in a great double episode (52 How to build a billion dollar property developing company  and 53 The critical importance of risk mitigation) of the show where we discussed how you build a billion dollar property developing company. It was a great conversation and I highly recommend having a listen if you haven’t already. It was one of my favorite discussions.



    This time around we are covering:

    - what property developers can do during an unexpected slow down

    - what they should avoid

    - what Don thinks the next six to 12 months looks like

    - whether projects should be delayed

    - something Don has learnt in the past few weeks in response to what has been happening

    - something new that Don is doing now in response to the changes

    - if projects aren’t going to plan, what should you look to correct

    - if Don lost everything tomorrow but his knowledge, what would he focus on when making a comeback

    - a couple of books, movies and shows that Don has been enjoying

    Links

    Consolidated Properties Group – https://www.consolidatedproperties.com.au

    Don O’Rorke – https://www.consolidatedproperties.com.au/people/don-ororke

    • 27 min
    69 – Pursuing the build to rent property development model

    69 – Pursuing the build to rent property development model

    The build to rent model is getting a lot of attention across Australia as the cost of buying property keeps escalating. It seems to offer a lot of benefits but how does it work and what challenges does it present? Let's find out...



    Hello and welcome to episode 69 of the show, I've been enjoying a bit more social freedom as we slowly ease up the covid lockdown across Australia.



    I've also been very busy for the past few weeks, with lots going on with my projects. We've started demolition on one of them which is exciting, I posted a short video on the show's Insta and Facebook pages if you want to check out how it's going. After years of battling away it has been nice to see some action on site and start seeing the dream become a reality. Still a bit of work to do to get the builder on site for the initial site works so I've been busy sorting out some loose ends to ensure we don't have any delays.



    It will be interesting to see what happens with the property market over the next 6 to 12 months with lots of speculation around large stimulus measures for the industry, will be exciting if some of the initiatives get off the ground.



    If you have been using this time to ponder your future and reflect on what you'd love to be doing, and realized you want to get into property developing, don't forget we have the mentoring program to help you get started into a career of safe and profitable developing. If you would like to find out more then email me justin@propertydeveloperpodcast.com for further info.

    Build to rent model

    My guest on the show is Kris Daff. Kris is pursuing a large scale build to rent/sell model and he has an interesting story to share about how is going about it.



    There has been a lot of talk about build to rent in Australia, so I was very interested to hear how Kris was approaching the challenge.



    During this conversation we cover how Kris started out as an engineer and then morphed into a property developer. How he was looking for a different outcome with his projects and turned to helping people buy their homes through an alternative approach. We also talk about the different challenges that these types of projects present.



    Keep an ear out for how the financial feasibility and funding differs from a more traditional build to sell project.

    Lessons for real estate developers

    What an interesting journey Kris is on. I admire how Kris is trying to do something different and offering people an alternative path into home ownership. I like it. Here are a couple of other things I took out of my chat with Kris...

    1. Don't be afraid to pursue a different property developing path

    I enjoyed how Kris wasn't feeling fulfilled by the standard developing model and wanted to find a deeper connection with his projects and buyers, so he changed course and pursued a different option. So, are you feeling fulfilled with the model you are implementing, could you find a different developing challenge to excite you?

    2. As a property developer, how can you make life better for your future buyers?

    Further to Kris' efforts to generate a deeper engagement with buyers, he has explored ways of helping people attain home ownership, looked at how to create communities within projects and make life a little better for the people who live in the buildings. Perhaps there are some additional ways you could improve your projects to make life a little better for the final residents...

    3. Can you develop a property developing business model that can scale?

    Kris is trying to create a model that will scale, so that he can create more places for people to live in and one day own. Scaling in the property development game always brings challen...

    • 1 hr 4 min
    68 – Property development finance during a crisis

    68 – Property development finance during a crisis

    I am continuing my special series of discussions during the COVID19 pandemic, this time we are talking with Dan Holden from Holden Capital about all things finance and capital in times of uncertainty.



    During dynamic, volatile periods it is common for fear to take hold and cloud our vision of the future. It is often made more challenging when people and organizations around you are withdrawing capital or pausing to take stock.



    However, it is important to work through the fear, tackle the issue and get yourself set for future success.



    In this conversation we cover:

    1. What property developers should they be doing to get their finance sorted.

    Use the down time to making themselves ready/bankable by having a business plan that:

     - sets out their historical credentials, skills and ability to deliver

    - financial capacity through their assets and liabilities, and cashflow

    - how they intend to manage their business over the coming months and years

    Don’t do it alone. Talk to your advisors, accountant can help if they are a good one, or us as finance broker can add lots of value beyond just getting a good price on debt pieces.

    2. Can you still get money to finance your property development project?

    Definitely but it’s a very different landscape with less players, lenders are holding their capital back and new ones filling the gap.

    3. How have the finance/lending markets reacted?

    We have 160 lenders on our panel, I would put them into 2 categories;

    1. many have temporarily closed, preferring to see how bad the economy is going to be hurt before lending more.

    2. some have decided to keep lending but at lower gearing and risk, and some have put in place higher pricing

    4. Should you delay applying for property development project funding?

    Not if you have a sound deal, understand your capabilities and accept that the cost of funding has shifted for now. Expand on risk return and impact of waiting or going ahead.

    5. Should you be buying development sites?

    Same as above, need to understand your market, likely timing of events, have the ability to sit and wait but then be ready to deliver on the financiers requirements per 1.

    6. What is something you have learnt in the past few weeks in response to what has been happening?

    - Not always the lenders that you expect to stand up when it gets tough

    - A lot of time waster financial offers emerging requiring careful due diligence to avoid disappointment

    - Developers are remaining positive and generally looking to be ready when the market re-opens

    7. Any books, movies, shows you are recommending to people

    - Holden Capital's Constructive Finance podcast - we recently did a series on different loan products and how to best use them in your business to repatriate an recycle capital

    - Book: Profit First by Mike Michalewiscz – getting your business cash flow, being the way your money flows in an out of your business. Cash is king, cash is oxygen, few people finding that out the hard way in tough economic times

    - Book: Barefoot Investor by Scott Pape.

    Links

    - Holden Capital - www.holdencapital.com.au

    • 45 min
    67 – How to make the most of an unexpected slow down

    67 – How to make the most of an unexpected slow down

    When there is an unexpected slow down it can cause fear and uncertainty but pausing to reassess is not a bad thing, it's what you do next that counts. To help you consider what steps you can take during an unexpected slow down here's the second in my series of discussions with thought leaders about how to respond to the COVID19 pandemic sweeping the world and what property developers can do in response.



    I speak with past guest Andrew Hoyne about his advice on what you can do right now. Andrew featured in episodes 47 and 48 where we talked about how you can get 100 people lining up wanting to buy in to your next property development project.



    In this discussions we cover:

    - 5 things you can do to keep your projects progressing

    - 5 things to avoid doing during a slow down

    - something new or different that Andy is doing at the moment

    - some books and other content for you to consume.

    Links

    Hoyne - www.hoyne.com.au

    • 42 min

Customer Reviews

4.7 out of 5
60 Ratings

60 Ratings

Alfi0123456789 ,

Great info for new comers in the market

Hi Justin,
It’s been a great journey listening to your insights in property development. You helped me clear up my mind and take the heroes journey into this new endeavour.
I learned a lot and I made up my mind in taking your course or at least explore the options.
Thank you for your service.
Octav

nice neville ,

Great podcast

Justin’s interviews and thoughtful questions, ignited my interest in Property Development. Useful and informative!

Dr Goldstein ,

Very informative

Great podcast. Justin’s interviews are in depth and if great value to aspiring and experienced developers and I love when he follows up to clarify a point which I was wandering myself instead of just letting things that are a little unclear pass by.

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