EP 140: How To Understand Profit In Property Development

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Return on cost (ROC) is a crucial metric in property development that measures the profit of a project as a percentage of the total cost. It is essential for both investors and developers to understand and calculate ROC accurately to assess the financial viability of a property development venture. The importance of annualising return on investment (ROI) is a key factor that is often overlooked or misunderstood by stakeholders in the industry.

Annualising ROI is crucial for accurately evaluating the profit of a project over a specific time period, typically one year. This is important because it allows investors and developers to compare the return on their investment to other investment opportunities or benchmarks, such as the interest rate offered by banks. By annualising ROI, stakeholders can make more informed decisions about the potential returns and risks associated with a project.

In this week’s episode Hilary and Bob discuss how to understand profit in property development. They share insightful tips and insights on the topic, including a reminder not to judge a person by their car! So stay tuned to learn from the legendary Bob Anderson, gaining valuable knowledge about maximising profit in property development.

Episode Highlights:

Bob’s tip of the day [01:10]

How to understand profit in property development [03:38]

Clarifying the email offer [04:59]

Explaining return on cost (ROC) [08:02]

Return on equity vs. return on investment [09:44]

The significance of ROC in property development [13:07]

Differentiating between loan and equity partners [13:51]

The structure of equity partnerships in development [17:32]

Final thoughts and upcoming webinar [26:11]

Resources:

To learn more about our upcoming webinar; How To Develop Commercial Projects please click here: https://www.propertymastermind.com.au/how-to-develop-commercial-projects/

For more information about Hilarys book 3 Wines In, how to increase your self confidence today without the hangover tomorrow, please click here: https://hilarysaxton.com/3-wines-in/

To get inspired and to start taking action, listen to Hilarys podcast: Bounce Back Better. Available on Apple, Spotify or wherever you get your podcasts.

Ep. 171 – Property Development Workshop Takeaways

In this week's episode of the Property Mastermind Podcast, we dive into a recap of our recent three-day property development workshop. We had an amazing time with a fantastic group of people, and we're excited to share some of the key takeaways and golden nuggets from the event.

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Ep. 170 – How to Find a Property Development Site

In this week’s episode, Hilary and Bob discuss how to find a property development site. They discuss essential strategies and tips for identifying potential property development locations, emphasising that finding a site is the crucial first step in any development project.

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Ep. 169 – Liam’s Journey From The Army To Property Development

In this week’s episode, Hilary and Bob delve into an inspiring conversation with mentoring student Liam Nagel, who shares his incredible journey into property development. Liam discusses his background and the pivotal moments that led him to this field, offering advice based on his personal experiences. Tune in to discover Liam’s tips and gain inspiration for your own property development journey!

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Kind Words From Our Students

Matthew Leeworthy

"Through Bob’s teaching I have gained so much knowledge and I feel so much more confident in myself."

Bob’s course gave me the confidence in myself to ask investors for money. In the past I have only done projects myself with my own money and banks but now I have built my own investment base. Through Bob’s teaching I have gained so much knowledge and I feel so much more confident in myself.

Danny Mourani, NSW

"I loved the course."

I loved the course. It had all the info and more to put myself into a position to look at developing property full time.

Cameron Bloomfield

"It is highly detailed but logical and easy to follow."

Having now purchased and studied all that is available on the market, Property Mastermind was the most comprehensive. It is highly detailed but logical and easy to follow.

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