How property development helped create my wealth

Are you interested in getting involved in property renovations or development?

In today's show I'm sharing an interview where Justin Gehde and I talk about how I got started in property renovations and development.

This is part of the summer series of my show, where, while I'm on vacation, I pull out some of my favourite past podcasts not previously shared on this show.

So today there are some great hints for you because I discuss many of the lessons I learned and some of the things that I got wrong along the way.

How Michael Got Started With Property Development

• Michael bought his first investment property in the 1970s. He paid (a half share of) $18,000 for it and was got $12 a week rent.
• His second property needed a renovation. He got involved in development in the 1980s. He had good partners and mentors that helped him until the recession hit.
• Then he started helping others in the late 1990s helping people with property development management and doing development for clients.
• Michael is still very actively involved in property development. He enjoys creativity and finding solutions for problems.
• He takes pride in his large developments that have changed the face of some suburbs.
• Michael thinks property development is the best way to use money and buy assets cheaply. He doesn't flip, instead he renovates and holds on for the long term.
• In the 1980s Michael was very brave and maybe a little stupid, but he took some big risks and the rising market got him through
• He has learned from mentors and he has seen partners go bankrupt and he is a much more careful investor.
• A common problem Michael encounters with clients is they have unrealistic expectations.
• His advice is to start small do the renovation and then move up.
• The importance of finding investment grade properties in suburbs that outperform the averages and where the jobs are and where people have more disposable income.
• How today Michael conducts the orchestra and still has fun at work and undertaking property development.
• Michael still enjoys the marketing, research, recording the podcast, dealing with the media, and strategic actions.
• Michael and his property development management business became experts in certain municipalities, so they know what does and doesn't work.
• How experience makes a difference in property developments and creating the type of property that tenants want and what the end product should be.
• Location, owner occupier appeal, demand for a wide demographic of people who want to rent or buy there. Investment grade property.
• If starting over again, Michael would educate himself more and learn from people who have already done what he wants to do.
• Rather than flipping, property developers should be adding value, refinancing and keeping their properties. This way they are much more likely to become wealthy.

Links and resources:

• Michael Yardney
• Metropole
• Metropole's property development services
• Rich Habits Poor Habits
• Property Update App
• Property Developer Podcast

Our favourite show quotes:

"Property investment and development is a game of finance and having the right cash flow." Michael Yardney

"You have to have money set aside for a rainy day because the finance markets can turn very quickly." Michael Yardney

"I'm actually having fun sitting back a bit and enjoying the results." Michael Yardney

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