Purpose built properties
We aim to pioneer and innovate when it comes to our property information and help. Matthew Cullum has discovered the untapped market of the south east of England, with the high speed link directly to London making it a first choice for many commuters.
With the continuing rising prices of London properties, Folkestone has fast become a hotspot for inner city workers looking for an affordable property.
However, this can often lead to potential losses in terms of profit margins, which in turn can scare the investor into being reluctant to purchase property in the future. What you will find with experienced property developers who have been in the business of buying/selling and constructing property over many years is the individual team members who are in charge of making the decisions.
You will often find that in order for a developer to be consistently successful with each development, each experienced team member will have a particular role to carry out. For example, they will have the director of the company who ultimately makes the final decision when moving forward. You will have somebody who is in charge of marketing and communications, a member who will be in charge of the finances, another member who will be acquisition manager to source the best locations along with the properties themselves.
You will then have a project manager and finally client communications and care. Each individual working in their specialist field, will result in the company as a whole coming together like one well-oiled machine, with nothing being left to chance. These are the factors that are often overlooked by private investors with no experience, they will rush into the purchase of a property believing that it will be an easy transformation, often leading to disastrous consequences. My advice to a novice investor looking to get into the property market would be to seek advice from specialist property experts, acquisition managers, project managers etc. I would also advise them to seek an opinion on potential costs on a development by contractors who would be doing the renovation work. This will allow one to weigh up the options in terms of potential profit margins before ever parting with any capital.
Matthew Cullum’s blog always makes its perfectly clear that when property development is done correctly, with the precision planning and the right team behind you, there are potentials for huge profit margins. The difference between a developer and a private investor is that, a developer usually has a team of professionals around them to aid decisions and plan things out. However, a private investor usually works in teams of 2-3, with decisions being made solely by themselves, relying on their own property savvy when making decisions.
The current climate for property some would say is at a low and should be avoided with all things considered at this time, however Matthew Cullum’s blog notes that this could be an optimum time to make moves into the property sector. The reason for this is that usually when property hits a low, there are bargains and steals to be found in some of the more affluent areas. If a developer can manage to bag a delipidated property in an expensive area of a city or town, at a much lower price, if renovated correctly with costings fully worked out, the profit margins could be huge as the area of the property is one of the most important factors for people buying property.
Many experienced developers will often wait until the market is heading towards a downturn before they then start looking to source properties they could restore, wait for the market to begin to climb then look to sell the property(s). Matthew Cullum blog writes that this is how many private investors initially are able to make entries into the property market, acquiring property a fraction of their retail price, renovate them using their own construction or building companies to bring it up to a high standard then sell them on. This gives them their foot in the door to build up the funds to be able to continue buying and selling. The hardest element for anybody starting out in the property sector, is not initially having the liquid capital to launch their first project. To summarize, Matthew Cullum’s blog notes that anybody looking to get their foot in the door and potentially start a property portfolio, approach it with caution and patience, have the right team around you and never rush or panic buy a property without property scoping out the surrounding area. One wants to maximise potential profits by factoring in every element you can, leaving no stone unturned.