Home' API Magazine : January 2014 Contents 60
API JANUARY 2014
JANUARY 2014 API
hard work and risk, Shane felt Richard
deserved a more substantial profit, and
actually offered to forgo his share of the
proceeds. In an example of how well
this partnership has proceeded, Richard
declined the offer.
“He said to me, ‘let’s get this one
unconditional and look for another’.”
Shane is now taking a more structured
approach to the construction process.
“What we apply now is a much tighter
control and focus on construction. “It’s
about seeing their (the builder’s) products
in the marketplace and the results that
Does Shane think all the hard yakka was
“I think it was worth it for a lot of
reasons, most of which are the lessons
learned on getting the build and the
pricing right, and being able to work
Finally, Shane’s tip for budding small
project moguls is simply to ensure you
enjoy what you do.
“For me I love it, so we keep doing it.
We’ve got nine on the go now and all the
lessons from this get applied to that and
it’s getting better and better. If that’s not
what you want to do, then you may jag it
on the first one or two, but I believe you
need a level of knowledge and skill to
make them work really well.”
There’s one more thing Shane is
“You don’t go broke making a profit.” API
API thanks both Shane and Richard for
generously opening up their project to
scrutiny so that others may learn some
lessons about small project development.
We wish them good fortune in their future
endeavours as the dollars and experience
from Everton Park set them up for their
next round of property profit.
KEY PROJECT DATES – TOTAL TIME 18 MONTHS
Contract on property exchanged for $498,000.
Before the contract is unconditional: Complete detailed due diligence including verifying costs
and profit margin, and gaining further detail on the bus stop relocation. After the contract is
unconditional: request power abolishment from vendor, request sewer and water design quotes, apply
for demolition permit, apply for permit to disconnect and cap off sewer and water services. Devise
marketing plan for selling one block, consider builders to list house-and-land packages.
Request separate titles from titles office, list both blocks for sale, list house-and-land packages with
two builders. Accept design quotes for sewer and water design.
Demolish house and clear site.
September 2012 Contract to sell one block – settlement occurred in September.
Survey, complete provision of new sewer and water connections.
Complete house design and pricing, carefully considering house features, façade, and fixtures
Select builder, sign a fixed price turnkey construction contract.
Construction industry on holiday for one month over December and January.
Building and plumbing approval, commence construction – frame starts.
Finalise colour selections, electrical plan layout. Frame and roofing.
Continue construction – lock-up stage.
Continue construction – fitout.
Final inspection, correct defaults, handover/completion. Property staging and photos, begin property
September 2013 Open houses.
Contract the property.
NEW! By reader request...
API C NNECT!
www.apimagazine.com.au | @apimagazine | youtube.com/apimagazine
LOOK for the red API
Connect icon with
a Bonus Content
QR code (like this
example) to let you
know that there is a
Connect with investors featured in API like never before!
Submit your questions directly to featured investors and read the discussions with other readers.
Subscribe to the questions and receive instant email notifications when a reply has been made.
Once you’re within the API Connect site you can search by keyword for names, subjects or even
API issue number to filter the information you want to read.
Simply scan the QR code on the right to send your question to an investor!
Of course you can continue as always to send in your questions by emailing
DEVELOPMENT SERIES // PART 14
Links Archive February 2014 Navigation Previous Page Next Page