This article gives an overview of How To Fulfill the 5 Step System to Triple Your Property Development Profits in 24 Months. Well, what are these 5 steps?

These are the 5 steps that you need to take to triple your property development profits in 24 months:

1. 1. Identify a Suitable Property Development Site And Carry out a Concept and Preliminary Design and Development Appraisal.

1. 2. Arrange Funding and Finance for your planned project.

1. 3. Secure Planning Permission For Your Proposed Development.

1. 4. Initiate Sales And Marketing.

1. 5. Carry Out Detailed Design And Construction.

In the following chapters, I will explain what you need to do to successfully implement the 5 step system to triple your property development profits in 24 months.

Step 1: Identify a Suitable Property Development Site And Carry out a Concept and Preliminary Design and Development Appraisal.

In this, the most important step Study Hyde Park Residence, you need to scour the market to identify a building or property development site, that will be able to legally fulfill your vision for a profitable development Study Hyde Park Residence.

How do you do this?

Firstly you need to have a vision of what you want to achieve from your property development in your mind Study Hyde Park Residence.

To be successful, you will need to have carried out market research so as to prove that there is demand for the product that you plan to produce.

To help with this Vision, we will give you an example of a Vision that has already been successfully fulfilled. The purpose of this is so as to give you ideas about how you could achieve the same sort of outcomes from a suitable property development site of Study Hyde Park Residence your own choice.

The Successful property development that we will show you is located at Study Hyde Park Residence Gate in London, adjacent to London´s Study Hyde Park Residence, not far from the Albert Hall.

Why was this particular development successful?

The property developers, Cheval Properties, had identified a niche in the market for which there was an unfulfilled demand.

This particular niche was to provide first class premium serviced accommodation to visitors to London, often business people and their families, who needed to stay for periods of up to 3 months and sometimes more.

This serviced accommodation provided similar facilities to that of a 5 star hotel, but at a fraction of the price of a family staying at such a hotel like the Dorchester Hotel or the Lanesboro Hotel or Rosewood or Kempinski.

In this case the primary advantage of this particular site is its location, it is prime London property, and it would not be possible to successfully carry out such a development in a secondary location.

Customers for this type of serviced Accommodation would not wish to be located in any secondary location. They wish to be right in the center of London, and just a cab ride from any of the key business locations or shopping or possibly tourist venues that they may wish to visit for recreation purposes.

So how do you locate such premises, either building sites or suitable buildings for property development?

You need to have knowledge of the marketplace and what is available, or possibly what could become available for development.

In some cases, you may need to contact the property owner and ask them if they are interested to sell their land or property.

Sometimes the process of identifying the best development sites, and securing them can take many months and even years to achieve.

If you would like help in identifying and securing a suitable site for your vision, then drop a line to alan@alpusgroup.com or telephone Alan on +44 (0)7539 141257.

Step 2: Arrange Funding and Finance for your planned project.

In case you have such a vision yourself, then it is best to think through what your funding and finance requirements will be so that there are no hiccoughs along the way that make the plan unable to be fulfilled. Get all your ducks in a row first and then push the button on your planned property development and vision.

In some cases, you may need to assemble a site. What this means is that some property developers may wish to acquire several individual sites, so as to assemble them into one large property development site which they plan to develop to maximize their return on investment.

So as to get started on any property development you will need a certain amount of seed capital. This is the funding needed to initiate the development, and a good guide to what you may need would be around 20% of the finance required to fulfil the development.

You will need money to pay for the architect´s and other consultant´s fees such as a Town Planning Expert consultant, Environmental and Geotechnical consultants.

In the case of the example project that we quoted, that of No1. Study Hyde Park Residence Gate, the clients themselves, Cheval Properties, had sufficient liquid assets to purchase the site. This is because the company´s owners are the wealthy Arab Maktoum family from Abu Dhabi whose immense wealth means that acquiring a single property in Central London presents no obstacle whatsoever. In fact they have acquired numerous such properties, and you will see from their website that they have a portfolio of more than 35 central London properties, all of their high value and very profitable.

In your own case, you need to consider how you propose to find the necessary funds to purchase the property you have in mind for your vision to become a reality Study Hyde Park Residence.

If you intend to hold the property for the future, then as part of your exit strategy you need to talk to your funders about re-financing after completion of the project, such as was done at No. 1 Study Hyde Park Residence Gate, where the business was run as serviced apartments after completion of all construction, fitting out and interior design works were completed.

We can tell you in our free training where you can find suitable sources of funding and finance to enable your vision to become a reality.

If you would like help in identifying and securing funding for your vision, then drop a line to alan@alpusgroup.com or telephone Alan on +44 (0)7539 141257.

Step 3: Secure Planning Permission For Your Proposed Development.

Until now, we have not yet talked about acquiring the site to enable your vision to become a reality.

If you are still unsure whether you will be able to secure Planning Permission to vary out your vision, then you may wish to secure an Option to purchase the subject site. What securing an option means is that you secure the right to buy the site, but there is no obligation to buy the site.

So looking at the possible options here, you may commission your Architect to submit a Planning Application for your proposed development to the local Planning Authority, and wait the requisite period of 56 days for the local Planning Authority to respond with their approval or approval with comments, or alternatively rejection of the proposed development.

Overall, this process could take several months, so by securing an option to purchase the site, you have gained control over the site.

If the worst happens and your property development proposals are rejected, then you may re-consider whether a modified Planning Application could succeed, and decide to resubmit a revised planning application for the local Planning Authority to consider.

Sometimes, it may take several planning applications before a successful outcome is achieved.

If you do not want to go through such a protracted process, which of course can take a lot of time and money to prepare and resubmit several modified planning applications, then you could decide to let your option expire and not purchase the subject site.

Based on the feedback from the Local Planning Authority, you may become aware of reasons that the planned development would not be acceptable to them. You may decide that an alternative development site would be preferable.

On the other hand, the Local Planning Authority may grant you permission to carry out your planned development, subject to certain conditions known as Reserved Matters, but fundamentally you have the Planners approval to proceed subject to these conditions.

This is usually the key step to securing the necessary funding to carry out your proposed development and once the approval is in hand this can be shared with the funding provider who will allow draw down of the necessary funds to be able to proceed with the development.

If you would like help in securing planning permission for your site or for your vision, then drop a line to alan@alpusgroup.com or telephone Alan on +44 (0)7539 141257.

Step 4: Initiate Sales And Marketing.

Once you have secured Planning approval for your proposed development, you can start to consider your marketing campaign to achieve sales of the products that will have available for purchase or sale.

If you are developing flats for sale then you may have leasehold tenancies, usually for 100 years at least.

You can consider what your finished product will look like and commission your architect to prepare visuals of plans sections and elevations , and even 3D fly through´s of the proposed development Study Hyde Park Residence.

You will make certain options available to purchasers of what finishes you can offer.

In some cases, you can offer the leasehold demise for sale, which is provided with access and services to the perimeter of the demise which the leaseholder themselves will fit out to their own specification and drawings.

As part of your marketing, you can offer purchasers a bespoke service to design and fit out their demise to precisely their requirements. Such a service can be very profitable for you as a developer, particularly if you offer numerous clients the same bespoke service.

In the case of the development that we used as an example, No.1 Hyde Park Gate, then the purpose of the development was to provide luxury serviced accommodation. In this case visuals and interior designs were prepared so that prospective users of the serviced accommodation could see what they would be renting.

As with hotel accommodation, there is usually a soft opening period during which guests are accommodated, sometimes at reduced rates, so that any problems with the accommodation are worked out. It may take several months for all the small snags to be cleared, and the building is fully commissioned and reliable.

If you would like help in identifying and implementing a suitable Sales and Marketing Strategy for your vision, then drop a line to alan@alpusgroup.com
or telephone Alan on +44 (0)7539 141257.

Step 5: Carry Out Detailed Design And Construction.

There is a lot of work in the final stage of detailed design and construction of any development.

A smooth process of completion of the designs, procurement and construction is essential because this is the final step to making your new assets operational and saleable.

You need to consider what is the most efficient way to achieve the realization of your vision.

This usually involves deciding on a procurement strategy for the development as a whole, ie which contracts are you going to enter into Study Hyde Park Residence, with whom and how will these contracts all inter-relate and interface so as to produce the outcome that you require in the shortest possible time, and at the most economic cost.

Consideration of which consultants and contractors to use is worth carefully considering and each of these companies needs to be pre-qualified so that you choose the right horse for the right race.

Modern construction methods give you a lot of options, and it may be that what you want to produce can be largely manufactured in the factory and transported to the site and erected on prepared foundations.

Such a process can considerably reduce the time period needed for design and construction, because the work can be quickly done to a high quality in a factory environment.

Some sites may not be possible to carry out completely off-site construction.

If the project involves the refurbishment of an existing building then you may be constrained to traditional construction methods and materials that are more labour-intensive to carry out. This means that you will need highly skilled craftsmen to carry out the work.

Traditional “wet trades” such as masonry, plasterwork and floor screeds, and outside rendering involve the use of large quantities of water, and this, therefore, requires drying out of the construction, which can take months to achieve (depending on the weather conditions – winter months are humid and therefore do not promote quick drying out of the structure and finishes). Dehumidifiers can be employed to accelerate the drying out process. Essentially decorations cannot commence until the finished are suitably dried out.

If you have English Heritage requirements to fulfill, this can also complicate and extend the process needed to complete finishes within and sometimes outside the building.

If you would like help in arranging detailed design and construction contracts for your site and to achieve your vision, then drop a line to alan@alpusgroup.com or telephone Alan at +44 (0)7539 141257.

Conclusion:

You will see from the above 5-step strategy that you can maximize your profit potential for your development within 24 months.

In the example project that we quoted, No. 1 Hyde Park Gate, the profits were more than tripled by taking the next step which was to re-finance the project, so that the assets (18 luxury serviced apartments) were redployed as a business generating many thousands of pounds per annum for each apartment.

At the start, these apartments were generating 3000 pounds per week, so more than 150,000 pounds potential rentable value from each apartment of which there are 18, so a potential of 2.7 million pounds per annum!

Since then there has been appreciation on the property asset values over 30 years and the rents have also increased considerably in accordance with the luxury market rates.

So the key to maximizing profits from property is to re-finance so that you retain ownership of the assets, so you get the benefit of long term property inflation.

In the United Kingdom there is a critical shortage of residential accommodation that is actually not improving at the moment, and is likely to remain for many years to come. As a result of this critical residential property shortage Study Hyde Park Residence, there is a massive potential to create personal wealth from investment in the UK property market, especially the residential sector.

If you would like to receive our free training about property development and how you could triple your property development profits within 24 months, then go to this link and sign up here.

The other thing to note is that you do not need to be a UK resident or citizen to take advantage of the opportunities to prosper from the new Planning Law Change of Use legislation that is coming into effect from September 2020.

How By Spending More Money Can Make You More Money A Case Study Hyde Park Residence

If you would like to learn more, drop an email to alan@alpusgroup.com
or telephone Alan on (+44) (0)7539 14257.