Your pipeline of property deals and projects will become the lifeblood of your business. When you are getting started in property development, there is a lot to learn and you can benefit massively by following a tried-and-tested method. Here’s how to build your pipeline fast.
Prequalify your deals before spending your time, energy and money. Follow these steps and once the vender accepts or expresses an interest in your offer then start further site due diligence.
Click here to download the Process image below. And keep reading down for a transcript.
With this simple and effective process, you will be well on your way to professional property developer status in no time.
Follow this simple process to get started with building your property development pipeline.
Identify site and create a project
As you identify new development sites, create projects in MyPDA and store documents and data in one simple, easy place.
Quick Deal Analysis (QDA)
Appraise deals quickly, qualify deals that stack, appraise multiple schemes. See what you can pay that gets you the profit you need!
Full profit and cost breakdown
Review and clarify the numbers. View each QDA in your project history and clarify the costs included for every deal. See the costs and get clarification on the profit calculation. This data is at your fingertips and will give you that leading edge when you move onto the next stage of negotiating the price.
Start the conversation – data for professional developers
Share the data with agents and vendors, educate them on what the deal is worth to you and why. Ask how they evaluated. Is it overpriced? Discuss with tangible data. Build your credibility and confidence when negotiating.
Make your offer. Only offer what the site is worth to YOU!
Share the data that gives the agent/vendor confidence in your assessment and professionalism. If it feels right, leave them with your offer.
Prior to making your offer, we recommend spending a few more minutes running the numbers through the level 2 appraisal – The Detailed Financial Appraisal.
And remember, always ‘offer subject to…’. For example, offer is subject to full site and financial due diligence, and securing planning permission for the proposed scheme.