Australia’s Billion Dollar Property Developer, Bob Andersen reveals the process of profitable property development.
PART 3 OF 6: OBTAINING APPROVALS FOR YOUR DEVELOPMENT
We’re now up to Part 6 of the PROFITable Property Process Series. Remember the key word: PROFIT. We’ve done the P and we’ve done the R. Now, we’re up to the letter O.
O FOR OBTAINING APPROVALS
What do we mean by approvals?
Well, there’s basically 2 levels of approvals that you’ll need to do in a property development.
The first one to do or to gain is what we call a ‘development approval or a ‘development permit.’ Now, your project might be something simple. It might be a little subdivision, therefore it might be a splitter, it might be cutting a block of land in half, or it might be, for some town houses, a 3-pack.
Whatever it is, you have to get a development permit or a planning permit.
How do we do that? Well, once again, we rely on the experts. In the case of a subdivision, it could just be a consulting surveyor who could subsequently help you get that permit. In the cases of town houses, there’s probably 2 key experts there. That’s your architect, and your town planner. The architect is responsible for the drawings, and the town planner will make sure that those drawings comply with the council’s planning scheme.
So we have to get those 2 approvals before we can build anything. Before we can subdivide the land or before we start to build our townhouses. And it’s very important to get those.
The Power Of Consultants
So in order to get those, we need to appoint our consultants. Now, remember, we’re leveraging these experts’ time and their expertise. So I’ll tell you something about consultants: you don’t need to know how to be like them. You don’t need to know about how to be an architect or a town planner.
You know, I’ve done over $1billion worth of developments but I never went to uni. In fact, I tried but I failed in year 1. So the beautiful thing about property development is that these experts that have gone into their fields, they’ve gone out there, they’ve gone to Uni, they’ve studied, they’ve gone into private enterprise, they’ve gained lots of experience, and as a result they’ll work for you. I think that’s brilliant!
And that’s what you’re doing. You’re leveraging their time and their expertise. So during this process of obtaining approvals, this is where the key consultants really come into their own. All you have to do is coordinate.
Next in this series: letter F for Financing.
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