12 min
Story of Chris & Fred - why so many new Real Estate Developers lose money The Game for Real Estate Investors and Developers
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- Investing
Link to my Linkedin: https://www.linkedin.com/in/shanemelanson/
In this episode, Shane shares the story of experienced developer Chris and inexperienced developer Fred, highlighting the differences in their approaches to budgeting for a project. Chris offers invaluable advice on due diligence, engaging consultants, and identifying potential risks when interviewing contractors. They stress the importance of working with experienced developers to avoid costly delays and make informed decisions. Tune in to learn how to create a budget for due diligence and avoid losing money on development projects.
[00:01 - 05:00] What to Consider When Budgeting for a Project
Differences between experienced (Chris) and inexperienced (Fred) developers Importance of engaging consultants and submitting plans to the city Focusing on price alone can lead to costly mistakes Reviewing drawings in advance can save time and money in the long run [05:01 - 08:43] Questions to Ask Before Starting Your Project
Importance of asking about contractor experience, project team, trades access, and price per square foot Testing contractors on their knowledge and ability to execute the project Walking away from a project that doesn't make financial sense is often the better option Identifying and mitigating project risks during contractor interviews can save time and money in the long run
[08:44 - 12:46] Tips to Avoid Costly Delays and Risks in Development Projects
Obtain accurate information upfront to prevent delays and negative outcomes Avoid incorrect information that can cause delays and damage reputation Understand legal and civil issues related to the project beforehand Develop a budget for due diligence upfront and engage team members early to avoid costly mistakes
You can follow me on Linkedin and Twitter. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money.
LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.
Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.
Tweetable Quote:
“t's almost better to just cut your losses and walk away than to try to force a bad deal.” - Shane Melanson
Link to my Linkedin: https://www.linkedin.com/in/shanemelanson/
In this episode, Shane shares the story of experienced developer Chris and inexperienced developer Fred, highlighting the differences in their approaches to budgeting for a project. Chris offers invaluable advice on due diligence, engaging consultants, and identifying potential risks when interviewing contractors. They stress the importance of working with experienced developers to avoid costly delays and make informed decisions. Tune in to learn how to create a budget for due diligence and avoid losing money on development projects.
[00:01 - 05:00] What to Consider When Budgeting for a Project
Differences between experienced (Chris) and inexperienced (Fred) developers Importance of engaging consultants and submitting plans to the city Focusing on price alone can lead to costly mistakes Reviewing drawings in advance can save time and money in the long run [05:01 - 08:43] Questions to Ask Before Starting Your Project
Importance of asking about contractor experience, project team, trades access, and price per square foot Testing contractors on their knowledge and ability to execute the project Walking away from a project that doesn't make financial sense is often the better option Identifying and mitigating project risks during contractor interviews can save time and money in the long run
[08:44 - 12:46] Tips to Avoid Costly Delays and Risks in Development Projects
Obtain accurate information upfront to prevent delays and negative outcomes Avoid incorrect information that can cause delays and damage reputation Understand legal and civil issues related to the project beforehand Develop a budget for due diligence upfront and engage team members early to avoid costly mistakes
You can follow me on Linkedin and Twitter. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money.
LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.
Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.
Tweetable Quote:
“t's almost better to just cut your losses and walk away than to try to force a bad deal.” - Shane Melanson
12 min