Becoming a property developer can be an exciting but scary prospect. How do I know? Because I regularly talk to people starting out, and they share their fears about taking the plunge.
So I know one thing - being scared is normal. The important thing is to deal with your fears and move forward anyway. Let's take a look at the steps you can take to stop being scared about becoming a property developer.
Let me start with a quote from the great investor Warren Buffett - "Risk comes from not knowing what you are doing". Personally, I think you could swap the word "risk" with "fear" and the quote would still be spot on.
Fear in the property development sphere can almost always be traced back to lack of knowledge. Okay, I know that's a bold statement, but think about it. One of the most common fears is losing all your money on a deal. Agreed?
But if you gain the knowledge to know what you're doing, that risk is massively reduced, right? Of course curve balls which can have a negative impact on your project happen, but with the right information you can hit most of those curly ones to the fence for a home run.
All baseball metaphors aside, let me walk you through the steps you need to take so you can move from scared to excited.
Identify Risks
It’s natural to feel anxious when embarking on a new venture. Acknowledging these feelings rather than suppressing them is a great way to move forward. So let's start by pinpointing what scares you about becoming a property developer.
Common fears include:
When you're on a journey, it's easy to think it's all about focussing on the destination and how to get there. But the reality is a journey has both a starting and an end point. You need to know where you are right now, before you can plan how to get where you're going.
Okay, stop laughing, I know I'm beginning to sound like a fridge magnet. But I've seen enough people starting out to know that none of them start from the same place. Which means all of them have a different path they need to take.
Identifying the risks that are personal to you and why they scare you will help you address them directly. And remember, fear can be a powerful motivator that drives you to be more prepared and cautious.
Put a Risk Management Plan in Place
Now you know the risks that are scariest to you, the next step is to find ways to mitigate those risks. Overall, knowledge is almost always the key to removing risk and fear for budding property developers. Start educating yourself so you gain a solid understanding of property development.
For example - financial risk can be managed by learning how to analyse a site, prepare a solid feasibility and understand market conditions for your product.
Or if the sheer scale of property development seems overwhelming, consider starting with smaller projects. You can gain experience and build confidence without taking on excessive risk.
Remember, becoming a successful property developer is all about raising your skill levels. The more you know, the better the outcomes. I don't own a magic wand that I wave to make my developments profitable! I've done the learning over many years so I know how to manage risk. It's that easy.
Manage the Plan!
Once you've drawn up all your risk management plans - take action! The battle between your fears and taking action can be epic, often resulting in a severe case of analysis paralysis.
So yes, do the learning and the research to identify risks and how to mitigate them. But all of that is a waste of time if you don't then put the plan into action. Have faith in yourself!
As a side note, this is one of the big reasons why my Property Development Formula program isn't just about providing you with property development mentors, but also mindset coaches. All the learning is a waste of time if you don't have the right mindset. My coaches are great at helping you identify the reasons for your fears and then overcoming them.
So back to overcoming your fear of getting started on the journey of becoming a successful property developer. By educating yourself, you become an expert at understanding potential issues. You do this through detailed site analysis and due diligence. This leads into a realistic feasibility for the project.
With all those pieces in place, knowledge can overcome fear and you'll feel excited to move forward, instead of staying frozen in place from fear.
I know I've already given a shameless plug for my PDF program, but there are plenty of other resources available through Property Developer Network to help you start the process.
One of the reasons we run meetups around Australia is because the power of networking is huge when it comes to reducing your fear. The more you see other people doing the things that make you scared, the more you start to realise you can do those things too.
Think a backyard subdivision is scary? Watch a Real Deal speaker talk about their backyard subdivision project and how it went, and you'll start to see it's not that scary. Join in the masterminding groups and ask questions. Build a network of like minded individuals you can reach out to when you're not sure about something.
As an Annual Member, you also get access to our back catalogue of meetups. That's more than 12 years of industry experts and real deals. Looking at turning 1 house into 3 units? There's sure to be a Real Deal speaker who's done exactly that.
And of course, I'd love to have you in the PDF program if you want to accelerate your learning and have access to both a mentor and a coach.
There's also a stack of helpful information through our Property Pulse blog, YouTube, Facebook page and more. Believe me, I've been doing this for a long time now, so there's plenty of content for you to learn from. And I'm not the only person in this space.
The bottom line, though, is make sure you learn from people who are doing what you want to do. While I definitely encourage newbies to pair up for support, a mentor needs to have runs on the board. They don't always have to be playing the same game as you, but experience is essential.
Still not sure if this is too scary for you? Then I highly recommend you check out my free online course, The 7 Step FORMULA to Financial Freedom. It's a great introduction to the process of being a successful property developer. And it's FREE!
Remember, feeling scared about becoming a property developer is a common and natural reaction. However, with thorough preparation, education, risk management and support, you can address your fears and build a successful career in property development.
So take a deep breath, then go ahead and knock that ball right out of the park!
So I know one thing - being scared is normal. The important thing is to deal with your fears and move forward anyway. Let's take a look at the steps you can take to stop being scared about becoming a property developer.
Let me start with a quote from the great investor Warren Buffett - "Risk comes from not knowing what you are doing". Personally, I think you could swap the word "risk" with "fear" and the quote would still be spot on.
Fear in the property development sphere can almost always be traced back to lack of knowledge. Okay, I know that's a bold statement, but think about it. One of the most common fears is losing all your money on a deal. Agreed?
But if you gain the knowledge to know what you're doing, that risk is massively reduced, right? Of course curve balls which can have a negative impact on your project happen, but with the right information you can hit most of those curly ones to the fence for a home run.
All baseball metaphors aside, let me walk you through the steps you need to take so you can move from scared to excited.
Identify RisksIt’s natural to feel anxious when embarking on a new venture. Acknowledging these feelings rather than suppressing them is a great way to move forward. So let's start by pinpointing what scares you about becoming a property developer.
Common fears include:
- financial risk
- market fluctuations
- lack of experience
- the complexity of planning laws
When you're on a journey, it's easy to think it's all about focussing on the destination and how to get there. But the reality is a journey has both a starting and an end point. You need to know where you are right now, before you can plan how to get where you're going.
Okay, stop laughing, I know I'm beginning to sound like a fridge magnet. But I've seen enough people starting out to know that none of them start from the same place. Which means all of them have a different path they need to take.
Identifying the risks that are personal to you and why they scare you will help you address them directly. And remember, fear can be a powerful motivator that drives you to be more prepared and cautious.
Put a Risk Management Plan in Place
Now you know the risks that are scariest to you, the next step is to find ways to mitigate those risks. Overall, knowledge is almost always the key to removing risk and fear for budding property developers. Start educating yourself so you gain a solid understanding of property development.
For example - financial risk can be managed by learning how to analyse a site, prepare a solid feasibility and understand market conditions for your product.
Or if the sheer scale of property development seems overwhelming, consider starting with smaller projects. You can gain experience and build confidence without taking on excessive risk.
Remember, becoming a successful property developer is all about raising your skill levels. The more you know, the better the outcomes. I don't own a magic wand that I wave to make my developments profitable! I've done the learning over many years so I know how to manage risk. It's that easy.
Manage the Plan!Once you've drawn up all your risk management plans - take action! The battle between your fears and taking action can be epic, often resulting in a severe case of analysis paralysis.
So yes, do the learning and the research to identify risks and how to mitigate them. But all of that is a waste of time if you don't then put the plan into action. Have faith in yourself!
As a side note, this is one of the big reasons why my Property Development Formula program isn't just about providing you with property development mentors, but also mindset coaches. All the learning is a waste of time if you don't have the right mindset. My coaches are great at helping you identify the reasons for your fears and then overcoming them.
So back to overcoming your fear of getting started on the journey of becoming a successful property developer. By educating yourself, you become an expert at understanding potential issues. You do this through detailed site analysis and due diligence. This leads into a realistic feasibility for the project.
With all those pieces in place, knowledge can overcome fear and you'll feel excited to move forward, instead of staying frozen in place from fear.
I know I've already given a shameless plug for my PDF program, but there are plenty of other resources available through Property Developer Network to help you start the process.
One of the reasons we run meetups around Australia is because the power of networking is huge when it comes to reducing your fear. The more you see other people doing the things that make you scared, the more you start to realise you can do those things too.
Think a backyard subdivision is scary? Watch a Real Deal speaker talk about their backyard subdivision project and how it went, and you'll start to see it's not that scary. Join in the masterminding groups and ask questions. Build a network of like minded individuals you can reach out to when you're not sure about something.
As an Annual Member, you also get access to our back catalogue of meetups. That's more than 12 years of industry experts and real deals. Looking at turning 1 house into 3 units? There's sure to be a Real Deal speaker who's done exactly that.
And of course, I'd love to have you in the PDF program if you want to accelerate your learning and have access to both a mentor and a coach.
There's also a stack of helpful information through our Property Pulse blog, YouTube, Facebook page and more. Believe me, I've been doing this for a long time now, so there's plenty of content for you to learn from. And I'm not the only person in this space.
The bottom line, though, is make sure you learn from people who are doing what you want to do. While I definitely encourage newbies to pair up for support, a mentor needs to have runs on the board. They don't always have to be playing the same game as you, but experience is essential.
Still not sure if this is too scary for you? Then I highly recommend you check out my free online course, The 7 Step FORMULA to Financial Freedom. It's a great introduction to the process of being a successful property developer. And it's FREE!
Remember, feeling scared about becoming a property developer is a common and natural reaction. However, with thorough preparation, education, risk management and support, you can address your fears and build a successful career in property development.
So take a deep breath, then go ahead and knock that ball right out of the park!
