Ep 257 – The 5-Day Property Development Audit That Stopped People Cold

Hilary Saxton (01:03.994)

Hello and welcome to Property Mastermind Podcast episode 257. Today we are talking five days, five skills. The property d start again. Hello and welcome to Property Mastermind Podcast episode 257. Today we are talking five days, five skills. They the property development audit that stopped people in their tracks.

257. Today we are talking five days, five skills. The property start again. Hello.

Mind Podcast episode 257. Today we are talking five days, five skills. They the property development audit that stopped people in their tracks. Bob and I ran recently a five-day property development challenge inside a Facebook group that we are specifically for that, and you can still get access if you would like to watch it. Anyway, these are the key takeaways and the things that you probably will get a lot of use out of. So let’s jump on into this episode. Number 257.

Bob and I ran recently a five-day property development challenge inside a Facebook group. That way I can specifically for that, and you can still get access if you’d like to watch it. Anyway, these are the key takeaways and the things that you probably will get a lot of use out of. So let’s jump on into this episode number two five seven. Hello and welcome to Property Mastermind Podcast, episode 257. Crikey Bob, what a name. What did I call it that? Five days. Five days, five skills. The property development audit that stopped everyone in their tracks.

Master My Podcast, episode 257. Crocky Boy, what a name is that five days, five days, five skills. The property development bought it, that stopped everyone in their tracks. How do you ever remember that? Well, I didn’t actually remember. I used to do I had to do three start papers. Well done. Congratulations. It’s actually it’s a mouthful and a half. It’s quite funny because we probably said it many times before, but I start the podcast and every week I do at least two starts. That’s pretty good. Yeah.

Hilary Saxton (01:56.24)

Well, I didn’t actually remember. I had to do th I had to do three start takes. Well done. Congratulations. It’s actually quite a mouthful and it’s quite funny because we probably said it many times before, but I start the podcast and every week I do at least two starts. That’s pretty good. Yeah. I I start and they say, hello, and then I bumble it. I don’t it’s just a habit I’m in, I think. but anyways, that’s just me and how I roll. Bob, episode two fifty seven, welcome to

I I start and they hello and then I bumble it. I don’t it’s just a habit I’m in, I think. anyways, that’s just me and how I roll. Well, episode two fifty seven, welcome to there’s like five years of solid podcasting. Yeah, it is. Be a bit over five probably now. Right. Or cl yeah, f yeah, it would be. Yeah, pretty well spot on five years. What troopers we are. We should actually find out what date we start. I can do that. We only ever missed two or three weeks in in like f two weeks in five years. Yeah.

That’s like five years of solid podcasting. Yeah, it is a big bit over five probably now. Crikey. Yeah, it would be yeah, pretty much spot on five years. Huh no group as we are. We should actually find out what date we started. I can do that. I will miss two or three weeks. Two like two weeks in five years. Yeah. For very good reason. So yeah, there you go. Amazing. I’m just gonna pause. You you are talking a little bit quieter and I’ll bet she’ll have to regulate the voice.

For very good reason. So yeah, there you go. Amazing. I’m just gonna pause. You it you are talking a little bit quieter and I’ll actually have to regulate the voice. Yeah. this is okay. Well, I I thought I was.

Just talk how you normally would talk. Yeah.

Hilary Saxton (02:58.48)

Okay, I’ll jump back in now. Anyway, before we kick off, Property t Property Millionaires Exposed, Sondra Ballot. Sondra, we had a chat yesterday and it was a great chat and I’ve emailed you everything I said I would this morning. How good am I? Anyway, here is a book coming out to you. I don’t think you’ve ever received it. If you have, well, you’ll have another and you’ll be able to give it away as a gift.

Anyway, before we kick off, Property Millionaires Exposed, Sondra Ballot. Sandra, we had a chat yesterday and it was a great chat and I’ve emailed you everything I said I would this morning. How good am I? Anyway, here is a book coming out to you. I don’t think you’ve ever received it. If you have, well, you’ll have another and you’ll be able to give it away as a gift.

I also have some shout outs today to some people that listen on a regular basis that I want to say hi to because we have so many listeners, which is really nice. Hit subscribe if you watch us on YouTube. That’ll be awesome. And you know what? I challenge you to leave a comment. I would love for you to write a comment. It is well known that in the finance industry and in the property industry or things where the places where there’s money discussed, people don’t make comments. I don’t know why. We’ve talked about it and talked about it. It’s just one of those things. But

I also have some shout outs today to some people that listen on a regular basis that I want to say hi to because we have so many listeners which is really nice. Hit subscribe if you watch us on YouTube, that’ll be awesome. And you know what? I challenge you to leave a comment. I would have loved for you to write a comment. It is well known that in the finance industry and in the property industry or things where places where there’s money discussed, people don’t make comments. I don’t know why.

We’ve talked about it and talked about it. It’s just one of those things. But give us a comment, we would love for you to say something. Start an interaction. That’d be awesome.

Hilary Saxton (03:52.708)

Give us a comment, we would love for you to say something. Start an interaction. That’d be awesome. anyway, my shout outs are to Peter C, who listens to us while he’s mowing his lawns. Hey gang, Peter. I’m in your ear. Hello. I hope you’re good. How the lawns? And then to Mark H, he also listens regularly. Mark, both of these people have been through our mentoring programme actually. And Mark’s building something pretty special at the moment, isn’t he, Bob? He is. Yeah, and he he often he’s also

Anyway, my shout out to Arthur Peter C, who listens to us while his mom is always me going, Peter. I’m in your ear. Hello, I hope you’re going hella little ones. And then to Mark H, he also listens regularly. Mark, both of these people have been through our mentoring programme actually. And Mark’s building something pretty special at the moment, isn’t he, Book? He is. Yeah, and he he often he’s also just involved with us in a few other ways, and he he’ll often find out things through the podcast, which is so quite funny. Sent me an email yesterday, I need to get back.

Just involved with us in a few other ways and he he’ll often find out things through the podcast, which is so quite funny. Sent me an email yesterday, I need to get back to you today, Mark. And then Megan Kutlarkis. That’s it’s a tough last name, Megan. I have met Megan. Megan was the first person to ever buy my book, Three Wines In. So and I know she listens, so hey Megan, how you doing? Can’t wait for you to join a bit more with property development. We need to have a chat one day soon, I think. Anyway.

You today, Matt. And then Megan Kodlarkis. It’s a tough last name, Megan. I have met Megan. Megan was the first person to ever buy my book Three Ones In. So and I know she listens, so hey Megan, how you doing? Can’t wait for you to join a bit more with property development. We need have a chat one day soon, I think. Anyway, before we carry on with the podcast that and the five-day challenge and how it happened, Rob do you have a tip for the day?

Before we carry on with the podcast th and the five day challenge and how it happened, Bob, do you have a tip for the day? Well, probably a bit of a strange one. You know how I like insecurity.

In-Person (04:58.084)

Well, probably a bit of a strange one. You know how I like insignificant things. Well, I like to know things. Trivia, you know, sometimes I like to have a look at trivia. Guess what? I found out the other day that honey, which is a you know, a great health thing if you get the gr the right sort of honey, it they found in Egypt in tombs, honey that’s over four thousand years old. And guess what? It was still it still tasted sweet. Can you believe that? Four thousand year old honey? Wow, I wonder if it tastes any bitter or it has any

That honey which is a yeah, a great help.

It they found in Egypt in tombs honey that’s over four thousand years old and guess what? It was still it still tasted sweet. Can you believe that? Four thousand year old honey. Wow, I wonder if it tastes any better or it has any more health benefits or I’ve got no idea. Could you look that up and get back to me? I’ll get back to you. But it got me thinking about you know, that’s a long time, four thousand years. Sweet deals. Honey sweet, sweet deals. You know, you have such a good sweet deal in property and guess what? It only takes one or two years.

I’ve got no idea. Okay, I’ll get back to you on that. But it got me thinking about you know, that’s a long time, four thousand years. Sweet deals. Honey sweet, sweet deals. You know, you have such a good sweet deal in property, and guess what? It only takes one or two years. A sweet deal, but it lasts a long, long time. A bit like honey. Bit like honey. Bit like honey. Well there you go. Yes, honey. So today we’re gonna talk about our five day challenge, which we held inside our

A sweet deal, but it lasts a long, long time. A bit like honey. A bit like honey. A bit like honey. Well there you go. So today we’re going to talk about our five-day challenge, which we held inside a pr a Facebook group. So you can that group’s still open. So if you wanted to do the challenge, you can actually just go and join the Facebook group and work your way through the five days. So day one will be at the bottom and it’ll work its way up. And we also created workbooks so you’ll be able to download those and work your way through.

In-Person (05:56.122)

So you can s that group still open. So if you wanted to do the challenge, you could actually just go and join the Facebook group and work your way through the five days. So day one will be at the bottom and it’ll work its way up. And we also created workbooks so you’ll be able to download those and work your way through. What we did was every morning at 10am for 30 minutes we jumped inside this Facebook group live and we had it structured and we worked through.

What we did was every morning at ten AM for thirty minutes we jumped inside this Facebook group live and we had it structured and we worked through a a a system to get people started. Really like a bit of inertia, wasn’t it, Bob? Yeah, it wasn’t so.

A system to get people started. Really like a bit of inertia, it, Bob? Yeah, it wasn’t so much obviously five days, five half half hour sessions over five days, you’re not gonna turn into a property developer instantly and it’s not meant to be a whole education thing on how to do property development. I it was more towards people who are thinking about it and maybe those first moves, those first actions that you could take. And although of course we had some of our regulars on there as well, developers, but

Instantly, and it’s not meant to be a whole education thing on how to do property development. It was more towards people who were thinking about it and

Maybe those first moves, those first actions that you could take. And although of course we had some of our regulars on there as well, developers, but yeah, it it was it was such good fun. I’ve never done one before, ever. And it was because it was like every day something different, thirty minutes, it was it was just charged, it was so much energy and we had a quite a bit to cover every day. It was just great, it was good fun. And today we’re gonna unpack what we did cover, so that’s cool. We’ll go through the bullet points on those, the big takeaways. But what I also found interesting

In-Person (06:50.552)

Yeah, it it was it was such good fun. I’ve never done one before, ever. And it was because it was like every day something different, thirty minutes it was it was just charged, it was so much energy and we had a l quite a bit to cover every day. It was just great, it was good fun.

Hilary Saxton (07:11.254)

For was the knowledge gaps that we plugged for people. Because when you come to maybe a three-day workshop or you’re involved in something else we do, whether you’re in our mastery program or our mentoring program, we always teach a lot of information. We try and keep it as simple as possible and make sure you understand. But when you’re learning something, it’s really difficult to retain information. And Janita said to me, I took this away from day whatever it was. I was like,

the knowledge gaps that we plugged for people. Because when

Or you’re involved in something else we do, whether you’re in our mastery program or our mentoring program. We always teach a lot of information. We try and keep it as simple as possible and make sure you understand. But when you are learning something, it’s really difficult to retain information. And Janita said to me, I took this away from day whatever it was. I was like,

You should you should know that already. I I you’ve already been to workshops. I how how did you miss that? And she goes, I don’t know. I just it just really clicked for me. I was like, Well, there you go. How good is that? So just plugging in for 30 minutes a day plugged a massive hole for her and opened up a better journey for her, which is awesome. So anyway, Bob, I thought would would work our way through what we did. Okay. lot fun. It is it is gonna be fun. But like I said, if you want to go and do the challenge, it’s just the Facebook page is called Five Day Property Development Challenge.

Should you should know that already? I’ve already been to workshops. Like, how did you miss that? She goes, I don’t know. I just it just really clicked for me. I was like, well, there you go. How good is that? So just plugging in for 30 minutes a day plugged a massive hole for her and opened up a better journey for her, which is awesome. So anyway, Bob, I thought would would work our way through what we did. Okay, sounds like fun. It is it is gonna be fun. But like I said, if you want to go and do the challenge, it’s just the Facebook page is called five.

Hilary Saxton (08:10.52)

Not the. We just went five-day property development challenge. I don’t know what was thinking there. And you can just join it and work your way through. So why not? It’s free. And you if you’re into property or into property development, you’ll probably get a lot out of it. Just 30-minute stints, which is awesome. And you can have your own five-day challenge. So Bob, we started off on day one. I’m going to give you that the bullet points and then we’ll work our way through them. So we started off with why? Your what is your why? Then we went to the skills that you already have. Then we went to your risk profile.

And you can just join it and work your way through. So why not? It’s free and you if you’re into property or into property development

thirty minute stints, which is awesome. And you can have your own five day challenge. So Bob, we started off on day one. I’m going to give you the the the bullet points and then we’ll work our way through them. So we started off with

Why your what is your why? Then we went to the skills that you already have. Then we went to your risk profile, your financial situation and brokers and capital. So let’s just start with you know what we touched on with start with your why. Yeah, the why, that’s a big thing, not just in property development. It’s what drives you, it’s it’s where your energy and your drive and your determination comes from. And it can be lots of things. Not just, I want to drive a red Ferrari.

your financial situation and brokers and capital. So let’s just start with yeah and what we touched on with start with your why. Yeah the why that’s a

Hilary Saxton (08:54.732)

And it can be lots of things. Not just, I want to drive a red Ferrari. It it needs to be something more solid than that. And so look, property development’s often about money, isn’t it? We I mean why do we do it? We do it for lots of reasons, but we we do it to make good money and it’s more about what we would do with that. why it could be around a whole heap of things. It could be more it could be more time off because with property development you can make a lot more money.

It it needs to be something more solid than that. And so look, property development’s often about money, isn’t it? We I mean why do we do it? We do it for lots of reasons, but we w we do it to make good money and it’s more about what we would do with that. w could be around a whole heap of things. It could be more it could be more time off because with property development you can make a lot more money.

than your day job, but in a lot less time, a lot less work. So it could be, you know, reclaiming time, it could be getting out of the the day job that you don’t like. That’s set up your financial future. There’s a whole heap of reasons, isn’t there, of why. But I think you need to state the why, and probably don’t talk about that enough, is is to really understand what it is that’s going to drive you. Because it it’s not always simple and easy in a you know, a garden bed of roses. There there’s tough times. You’ve got to deal with stuff and

Than your day job, but in a lot less time, a lot less work. So it could be, you know, reclaiming time, it could be getting out of the day job that you don’t like. Set up your financial future. There’s a whole heap of reasons, isn’t there, of why. But I think you need to state the why, and probably don’t talk about that enough, is to really understand what it is that’s going to drive you, because it it’s not always simple and easy and a you know, a garden bed of roses. There’s tough times you’ve got to deal with stuff, and it’s when you re reflect back on why am I actually?

It’s when you re reflect back on why am I actually doing this? Yeah, no, that’s right, I’m determined, I’m gonna get through this that matters. Yeah, and i i it’s a great point that you just made there, Bob, that life’s not always easy, whether that’s in property development or anything, and you’re listening right now, you might be going through some sort of

Hilary Saxton (09:48.962)

Doing this, yeah, no, that’s right. I’m determined, gonna get through this. That matters. Yeah, and it’s a great point that you just made there, Bob, that life’s not always easy, whether that’s in property development or anything, and you listening right now, you might be going through some sort of tough patch, and I hope you’re not, but some it does happen. And I was seeing a counsellor a few years ago actually, and she said to me that human beings, it was a great relationship we ended up having. We became quite good friends.

Some it does happen. And I was seeing a counsellor a few years ago actually and she said to me that human beings it was a great relationship we ended up having. We became quite good friends. But she said people get sold a story in life that it’s going to be easy. And life isn’t going to be easy. You are going to be challenged at some point. And we have challenges every day with property development. They’re not huge, but there are things you’ve got to overcome. So that’s within developing themselves and we always have solutions. But then

But she said people get sold a story in life that it’s going to be easy. And life isn’t going to be easy. You are going to be challenged at some point. And we have challenges every day with property development. They’re not huge, but there are things you’ve got to overcome. So that’s within developing themselves. And we always have solutions. But then also the why was important because you will have things pop up and get in the way. And you need to see things as on the way and not in the way. And you need to carry on.

Also, the why was important because you will have things pop up and get in the way, and you need to see things as on the way and not in the way, and you need to carry on doing what you want to do alongside life’s oncoming obstacles because there will always be a lot of them, and sometimes it feels like you’re driving uphill, you’re going up a one-way street the wrong way, but then it turns a corner and it’s all plain sailing, and you’re gonna have that in life where

doing what you want to do alongside life’s oncoming obstacles because there will always be a lot of them. And sometimes it feels like you’re driving uphill, you’re going up a one way street the wrong way. But then it turns the cor corner and it’s all plain sailing and you’re gonna have that in life, whether that’s with anything. And so property development is included in that. So understanding your reason and attaching I remember you talking about this, attaching a feeling to that. Feeling an emotion to it. Yeah. It will help you drive forward and and

In-Person (11:00.854)

With anything and so property development is included in that. So understanding your reason and attaching, I remember you talking about that this attaching a feeling to that. Yeah, feeling an emotion to it. Yeah, will help you drive forward and and and and keep on the journey and feel excited about it because at the end the payday, when people give up, they they don’t get that feeling. The payday, my gosh, the payday is so good. You know, when the when you look in the bank and it’s like boom, yay! But

And and keep on the journey and feel excited about it because at the end the payday, when people give up, they they don’t get that feeling. The payday. my gosh, the payday is so good. You know, when the you look in the bank and it’s like boom, yay. But some people just don’t get there because they they just don’t follow through. So we talked about your why, then we talked about the skills you already have, Bob. Yeah, but a lot of people bring skills to the table and why not even realise. There’s a lot of skills out there. It could could be skills from your current job. Maybe

Some just don’t get there because they they just don’t follow through. So we talked about your why. Then we talked about the skills you already have, Bob. Yeah, well a lot of people bring skills to the table that might not even realise. There’s a lot of skills out there. It could it could be skills from your current job. Maybe you’ve got a job, it could be a management or submanagement job where you’re organizing people, where you’re meeting time frames. It could be look, it could be raising a family.

job it could be management or submanagement job where you’re organizing people, where you’re meeting time frames.

It could be look, it could be raising a family. Well I mean goodness, y you think of all the skills involved in that. You know, getting getting kids sorted out, getting to places on time, a lot of time management involved in that, a lot of communication, all all sorts of things, all sorts of backgrounds, project management, but not necessarily property project management, could be IT project management even. But even a PA, Bob. A PA organizes something, organises a person to r r it runs

In-Person (11:56.47)

my goodness. Y you think of all the skills involved in that. You know, getting getting kids sorted out, getting to places on time, a lot of time management involved in that, a lot of communication, all all sorts of things, all sorts of backgrounds, project management, but not necessarily property project management, could be IT project management even. There’s so many skills. A PA organizes something, organises a person to r it runs

A PA as a person runs somebody else who is often running something bigger. And that’s a lot like a property development. Yeah, so we ask people to think about the skills that you currently have and how they might be helpful property development. You can communicate well. You can organise well. What about tough tough conversations sometimes?

As a person runs somebody else who is often running something bigger. And that’s a lot like a property divine. Yeah, so we ask people to think about the skills that you currently have and how they might be helpful or adaptable to property development. You can communicate well. Yep. You can organise well. What about tough c tough conversations sometimes?

Sometimes you have to have a tough conversation. Can you do it? Can you deal with that? How are you gonna deal with that? You know, those sorts of things. But you but people, you know, just just what you bring to the table. You already have more than you think in most cases. The next thing we talked about was risk profile. So some people are more or less risk adverse. And whether that is something you might want to change, if you’re like totally take on any risk, you might want to rein that back. But if you’re too risk adverse and it’s going to stop you moving forward, maybe you need to address that. And

Can you do it? Can you deal with that? How are you gonna deal with that? You know, those sorts of things. But you but people you know, just just what you bring to the table. You already have more than you think in most cases. The next thing we talked about was risk profile. So some people are more or less risk adverse and whether that

In-Person (13:00.802)

is something you might want to change. If you’re like totally take on any risk, you might want to bring that back. But if you’re too risk averse and it’s going to stop you moving forward, maybe you need to address that. And so we just looked at you having a look at yourself and how you deal with risk or whether it slowed you down in life or speed you up in life. Then we went on to financial situation, which was really where the property development stuff, the actual taking property development action, less of the inside journey, more of the outside journey.

So we just looked at you having a look at yourself and how you deal with risk or whether it slowed you down in life or speed you up in life. Then we went on to financial situation, which was really where the property development stuff, the actual taking property development action, less of the inside journey, more of the outside journey, kicks off. Bob, what what’s the importance of knowing your financial situation? Yeah, it is pretty important and like you said, it’s the first solid

Hex off, Bob, what what’s the of knowing your financial situation? Yeah, it is pretty important. And like you said, it’s the first solid bit of of property development. It’s a couple of things happen simultaneously, but how are you going to finance a property development? Now financiers don’t finance a hundred percent of the costs. They’ll finance most of them, seventy-five, eighty percent, even more, but you have to have some some equity yourself, what we call equity in property development, mostly cash, but it could be an unencumbered property. How are you gonna finance it?

Simultaneously, but how are you going to finance a property development? Now, financiers don’t finance 100% of the costs, they’ll finance most of them, 75-80%, even more. But you have to have some some equity yourself, what we call equity in property development, mostly cash, but it could be an unincumbent property. How are you gonna finance it? How much money do you have? And you know, people often don’t sit down unless they’ve done a loan recently, they mightn’t have done an asset liability.

How much money do you have? And you know, people often don’t sit down, unless they’ve done a loan recently. They mightn’t have done an asset and liability statement of their their position. What assets do they own? What are those assets worth? What liabilities and loans and so forth do they have? What’s your net assets? And start to think about well, okay, I’m gonna get have to get my hands on some money. How do I do that? You might have some investment money on on you know on call, you might have money

Hilary Saxton (14:07.532)

statement of their their position. What assets do they own? What are those assets worth? What liabilities and loans and so forth do they have? What’s your net assets? And start to think about, well, okay, I’m gonna get have to get my hands on some money. How do I do that? You might have some investment money on on you know on call, you might have money getting interest on, you might have some capital, you might have equity. A lot of people have equity wealth, it’s not actually cash, but the point is, you know, can you extract cash?

Getting interest on, you might have some capital, you might have equity. A lot of people have equity wealth. It’s not actually cash, but the point is, you know, can you extract cash? Can you do a refinance perhaps, or maybe you’ve got a redraw facility or a line of credit? How can you get your hands on some cash? Because that’s going to dictate a lot how you go forward from there. And it might be that you don’t have enough cash of your own at the moment. And then we we bring

Can you do a refinance perhaps or maybe you’ve got a redraw facility or a line of credit? How can you get your hands on some cash? Because that’s going to dictate a lot how you go forward from there. And it might be that you don’t have enough cash of your own at the moment. And then we we actually broached that topic we talked about doing joint ventures, which are very, very common in our community. we do them all the time and a lot of our students do them. I think you’ve got a conversation this morning, Bob, with somebody wanting to do one. So that was day one.

conversation this morning Bob with somebody wanting to do one. So that was day one. And remember there is a workbook so you can work through that and it it makes it quite easy. the next day we talked about on day two was finding a patch and we just covered off on the on the bullet points which were what a patch I’ll start that again.

And remember there is a workbook, so you can work through that and it makes it quite easy. the next day we talked about on day two was finding a patch. And we just covered off on the on the bullet points, which were what a patch I’ll start that again. And day two, Bob, we went to finding a patch. And we covered off on what a patch actually is, start where you live, councils and state resources, red flags to actively screen for, and the right structure.

In-Person (15:21.712)

And day two, Bob, we went to finding a patch and we covered off on what a patch actually is, start where you live, councils and state resources, red flags to actively screen for, and the right structure. So when where do you want to start with Well start at the patch? What is a patch? Yeah. So so a patch is a is an area or locality where you’re thinking about doing a property development.

So when w where do you wanna start with we’ll start at the patch. What is a patch? Yeah. So a patch is

Hilary Saxton (15:44.816)

You think

And it needs to be containable in in in size because what you gotta do you’ve got to become an expert. Remember, we’re just covering what we covered. Okay. Yeah, you’ve gone so we go back to well. So I’ll just I’ll just reintroduce the patch thing again. Start again from there. Yeah, because we’re just we covered this and we covered that. Yeah, yeah, yeah. And when we can go back to we want them to go to that Facebook page because then it gives us people to contact. So that’s the reason that is, yeah. Okay, okay, so start again. So day two Bob was finding a patch.

And it needs to be containable in in in size because what you’ve got to do, you’ve got to be Just pause, Bob. Remember we’re just covering what we covered. Okay. Yeah, you’ve gone. So we’ll just go back to I’ll go back to Bob. So I’ll just I’ll just reintroduce the patch thing again. Start again from there. Yeah, because we’re just and we covered this and we covered that. And remember you can go back to we want them to go to that Facebook page ’cause then it gives us people to contact. So that’s the reason for this, yeah. Okay okay, so I’ll start again. So day two, Bob, was finding your patch.

And we covered we talked about what a patch is, do you start where you live, councils and state resources, red flags to screen for to screen for, why you gear, what gearing’s about, and getting the right structure. So w what what were the big takeaways do you think for finding your patch or what was important there?

And we covered we talked about what a patch is, do you start where you live, councils and state resources, red flags to screen for to screen for, why you gear, what gearing’s about and getting the right structure. So what what were the big takeaways do you think for finding a patch or what was important in the I just think the importance of a patch, you need to know where you’re likely to do a development. And that that’s important. It could be

Hilary Saxton (16:39.728)

You need to

In-Person (16:45.232)

Could be close to where you live, could be a bit further away. but but what you need to do is narrow down an area and become a real expert. That’s that’s what that’s about. Otherwise you can’t make really good decisions unless you you know an area really well. And you talked about which is something you

But

Hilary Saxton (16:52.572)

That’s what that’s about. Otherwise you can’t make really good decisions unless you you know an area well. And you talked about which is something you always talk about, we’re often going to do something nearer our home, but sometimes that just doesn’t work. And so choosing, you know, the next patch and and how to use resources around you to find out w what’s allowed and what you’re allowed to put, you know, in in that patch that you choose. so we went through sort of also the the types of development you may do too, didn’t we?

And so choosing, you know, the next patch and and how to use resources around you to find out what’s allowed and what you’re allowed put, you know, in in the patch that you choose. so we went through sort of also the the types of development you may do too, didn’t we? Yeah, we did. And look, our recommendation is always don’t start too big. but particular even if you might have a you know quite a wad of money, don’t start too big because just start smaller. There’s lots of smaller type developments where people start small subbies.

Yeah we did.

In-Person (17:35.072)

d you know, small townhouse developments, duplexes, those sorts of things. So yeah, don’t don’t start too big and we started to talk about that. So now we’ve sort of chosen our patch. Now we’re talking about well what sort of project might we like to do in that in that patch. And remember that that could reflect back to day one and what we can afford to do as well. So they they’re interrelated these things.

Duplexes, those sorts of things. So yeah, don’t don’t start too big and we started to talk about that. So now we’ve sort of chosen our patch. Now we’re talking about well, what sort of project might we like to do in that in that patch? Remember that that could reflect back today, one and what we can afford to do as well. They’re interrelated these things. Mm-hmm. And the whole actual actually the whole five days was really interrelated. We talked also about you know being comfortable and absolutely knowing everything about your patch. And I just have to have a bit of a shout out today to Sondra who’s

We talked also.

And absolutely know everything about your patch. And I just have to have a bit of a shout out today to Sondra who’s winning the book because she did the five day challenge and she was telling me yesterday that where she lives the patch doesn’t work, but she’s found somewhere that does. So that was I don’t know whether that was her takeaway from the five day challenge. But if it wasn’t, you know, it’s really good to hear that people do listen and take that important stuff on board. It is important. Every step’s important, but yeah, getting that patch down.

g winning the book because she did the five day challenge and she was telling me yesterday that where she lives the patch doesn’t work but she’s found somewhere that does. So that was I don’t know whether that was her takeaway from the five day challenge, but if it wasn’t, you know, it’s really good to hear that people do listen and take that important stuff on board. It is important every step.

In-Person (18:30.168)

That’s a big step. Day three, we covered feasibilities. And so that was numbers decide, the the big three numbers, what beginners miss, the margin benchmarks by product, time is money, when the margin doesn’t work, and build costs from real builders. Yeah. Well, back to numbers, hey, feasibility is just numbers, but how important is it? You know, when I’ve seen people get into trouble over the years, not people who’ve been teaching, thank goodness, but but you I’ve run into a lot of people. Very often, more often than

Day three we covered feasibilities and so that was numbers decide the the big three numbers, what beginners miss, the margin benchmarks by product, time is money, when the margin doesn’t work, and build costs from real builders. Yeah.

Hilary Saxton (18:54.288)

Thank goodness, but but you know I’ve run into a lot of people. Very often, more often than anything, it’s that they just get the numbers wrong. They they don’t know what they don’t know. And it it it it’s numbers. It’s not high-level mathematics this stuff.

Anything. It’s that they just get the numbers wrong. They they don’t know what they don’t know. And it it it it’s numbers. It’s not high level mathematics this stuff. You know, year four math is about as deep as it gets. but you gotta get it right. You’ve got to know all the elements, get the pricing right. And most importantly, I mean the whole point of the feasibility is to see that you’re making sufficient profit. We also covered margin scheme.

You know, year four math is about as deep as it gets. But you’ve got to get it right. You’ve got to know all the elements, get the pricing right. And most importantly, I mean the whole point of the feasibility is to see that you’re making sufficient profit. We also covered the margin scheme. So I think the good thing about property development and doing this as a five day challenge. We covered off on things that are quite important for people to know, like really high level the the begin th the important bits.

for people to know, like really high level like that the begin that the important bits, which is a really great way to get started before you start chunking it down and learning and the the nuts and and bolts of it all. But I believe that the big takeaway from the feasibilities was time.

Which is a really great way to get started before you start chunking it down and learning in the nuts and and bolts of it all. But I believe that the big takeaway from the feasibilities was time. Time is money because time’s gonna cost interest. And I think that that really shone out a lot at at a at a really basic level as something I don’t believe a lot of people realise. Would you agree? Yeah.

In-Person (19:47.726)

Time is money because time’s gonna cost interest and I think that that really shone out a lot at at a at a really basic level as something I don’t believe a lot of realise. Would you agree? Yeah, I would. And time in two respects. When you’re doing a feasibility, you have to get your timing right because as you said, the the big the thing that relates to time is interest. And that that can just mount up. So

said the the big the thing that relates to time is interest and that that can just mount up so get the timing right on your feasibility. The other side of time is you have to keep your project moving forward all the time. That’s why you need to know not just what you’re doing at the moment but future steps.

Get the timing right on your feasibility. The other side of time is you have to keep your project moving forward all the time. That’s why you need to know not just what you’re doing at the moment, but future steps and keep it moving. Keep it moving. Don’t let let it get bogged down. Every day is every day’s money, every day’s interest.

And keep it moving, keep it moving, don’t let let it get bogged down. Every day’s every day’s money. Every day’s interest. Mm-hmm. And that’s a p a good point, what what you put just pointed out there, Bob, is knowing the next step because you can often have that underway and sometimes you’re two steps ahead doing things that will be coming up, but you’re actually doing them earlier. Okay, day four was funding, and this was as usual, the big BFO for many people, the blinding flash of the obvious. We cover the two stages of finance the two stages of finance.

Because you can often have that underway, and sometimes you’re two steps ahead doing things that will be coming up, but you’re actually doing them earlier. Okay, day four was funding, and this was as usual the big BFO for many people, the blinding flash of the obvious. We covered the two stages of finance, the two stages of finance, who actually lends money to developments, the two LVR limits, how much

Hilary Saxton (20:53.518)

Who actually lends money to developments, the two L VR limits, how much your thumb rule for equity requirement in any development is. We covered the servicey or the no serviceability test, what financiers want to see, and we covered JV partners and how that they are very mainstream. So we did like rip through all that, and as I said, jump onto the Facebook page five-day property development challenge.

your thumb rule for equity requirement and any development is. We covered the service or the no serviceability test, what financiers want to see and we covered JV partners and how that they are very mainstream. So we did like rip through all that and as I said, jump onto the Facebook page five-day property development challenge and you can download the workbook and re-watch these as well if you want to go through these. But Bob, what do you think the big takeaway on day four?

And you can download the workbook and rewatch these as well if you want to go through these. But Bob, what do you think the big takeaway on day four was?

I think people st are starting to understand development finance as opposed to what they probably understand and what we call retail finance. So a lot of people on are familiar with what we typically call retail finance. They bought a house, they might have bought investment properties. And we start to explain in more depth about the type of finance that you use when you do development. And it’s quite different. there’s some very specific differences in there that that actually make it make it easier.

Mm.

Hilary Saxton (21:37.872)

So a lot of people on are familiar with what we typically call retail finance. They bought a house and I bought investment properties. And we start to explain in more depth about the type of finance that you use when you do development. And it’s quite different. there’s some very specific differences in there that that actually make it make it easier. It is actually easier, in my opinion, to get finance to do a property development than finance to do a house. Really? What makes you say that?

It is actually easier, in my opinion, to get finance to do a property development than finance to do a house to buy a house.

Well, it’s it’s around that serviceability factor. Of course. Because with property development you don’t need serviceability.

Well, it’s it’s around that serviceability factor. Of course. Because with property development you don’t need serviceability because it is commercial finance, so they loan you the interest. Let that be your takeaway. This is the one that blows people away. And you always think that we’ve said it so many times, but people don’t realise. And that’s why very often people that have been investing in property as a property investor

it is commercial finance so they loan you the interest. Let that be your takeaway. This is the one that blows people away and you always think that we’ve said it so many times but people don’t realise. And that’s why very often people that have been investing in property as a property investor will switch to development because they can’t borrow any money because as an impro as a property investor you need to have that serviceability.

Hilary Saxton (22:33.326)

will switch to development because they can’t borrow any money because as an impro as a property investor, you need to have that service ability to able to service the loan. But with development you don’t, and that’s why they go from investing to development. th they still usually will keep some or all of or most of, depending on how much equity they have available to get started in development, but they don’t need to service it. So there you go. Big takeaway there. one of the big takeaways. Yeah. Yeah, for most people. For some people. Yeah.

To able to service the loan, but with development you don’t, and that’s why they go from investing to development. they still usually will keep some or all of or most of, depending on how much equity they have available to get started in development, but they don’t need to service it. So there you go. Big takeaway there. It’s one of the big takeaways with finance, I’ve found. Yeah, for my It can be quite a shock for some people. Yeah. And then we talked about our JV partners and how mainstream that is. Like just how mainstream. I’m a JV partner.

And then we talked about our J V partners and how mainstream that is. Like just how mainstream. I’m I’m a J V partner in multiple projects and you know, we run projects where w where other people are J V partners with us.

projects and you know, we run projects where we other people are JB partners with us. Well that’s what we do, yeah, in in our in our own life. We we do a lot of it. But we’ve always encouraged it at at at Property Mastermind. But particularly I I’ve done so much in the past myself personally, so it was only natural that I’d want to teach people and encourage them to do it. And that’s why it’s just sort of second nature within the Property Mastermind community to do that. And we we see so many examples of that.

Particularly I’ve I’ve done so much in the past myself personally, so it was only natural that I’d want to teach people and encourage them to do it. Mm. And that’s why it’s just sort of second nature within the probably mastermind community to do that. And we we see so many examples of that with people we’re mentoring. We we see deals done. Can I say consummated? Joint ventures consummated. I think you can use that word actually, it’s not just what you’re thinking.

In-Person (23:38.788)

With people we’re mentoring, we we see deals done. Can I say consummated? Joint ventures consummated. I think you can use that word actually, it’s not just what you’re thinking about. It’s not nothing to do with the honeymoon or anything else. joint ventures let let’s say formed then at things like workshops. Or yeah, all the time. It’s it’s just like you said, second nature. It is. It it’s happening all the time.

Say formed then at things like workshops. Or yeah, all the time. It’s just like you said, second nature. It It’s well, I saw and you all the time. I saw in your diary today you’ve got a call booked for later this afternoon, which we do have our live QA tonight, so make sure you’re off the phone for that. But it is with someone in the mentoring program who is looking was looking for a joint venture partner, and I had a random phone call from somebody who said, I’m I’m looking for investors.

But it is with

Looking looking for a joint venture partner and I had a random phone call from somebody who said, I’m I’m looking for investors, two things. If you’re looking for investors, you don’t come to me for that because unless you’re part of our community, I’m not gonna go, Yeah, sure. but I I ended up having a great conversation with her and and then I said thought to myself, she had money but needed more. I’ve got a mentor, or we have a mentoring student that has money.

Two things. If you’re looking for investors, you don’t come to me for that because unless you’re part of our community, I’m not going to go, Yeah, sure. but I I ended up having a great conversation with her and sh and then I said thought to myself, she had money but needed more. I’ve got a mentoring. Well, we have a mentoring student that has money but needs more. So together, so I introduced them and I think that your phone call this afternoon will be about that joint venture agreement, which would be awesome. And that often

In-Person (24:38.134)

more so together so I introduced them and I think that your phone call this afternoon will be about that to a better agreement which would be awesome and that often you you’ve got to think about it united you stand divided you four and that doesn’t always have to be with someone you know as long as you you know the rules are in place and you’ve got a a a system on how it works you’re just gonna spend sort of eighteen months with somebody and then at the end you split a profit. How good? Yeah and it gets so many people started in property development.

you’ve got to think about it, united you stand, divided you fall. And that doesn’t always have to be with someone you know. As long as you you know, the rules are in place and you’ve got a a a system on how it works, you’re just gonna spend sort of eighteen months with somebody and then at the end you split a profit. How good? Yeah. And it gets so many people started in property development. Yeah. If you’re thinking starting

If you’re thinking of starting property development and you think, I’ll have to save up a certain amount of money, you’ll you’ll never you’ll never do it, you’ll never catch up. so that’s why it’s a great way of kicking off. My first two projects were done with this sort of thing. Yeah, it’s a great way to get started, I would agree. Yeah. Yeah. Last day, day five, we talked about approval. So DA’s and BAs or C C’s wherever you are, we broke that down.

Save up a certain amount of money, you’ll you’ll never you’ll never do it, you’ll never catch up. so that’s why it’s a great way of kicking off. My first two projects were done with this sort of thing. Yeah, it’s a great way to get started, I would agree. Yeah, yeah. Last day, day five, we talked about approval. So DA’s and BAs or C C’s, wherever you are, we broke that down and just explained the timing of them, what they take, what you need to do to get them. Then we talked about

just explain the timing of them, what they take, what you need to do to get them. Then we talked about the teams involved with those, we talked about delays, what to do when they happen, we talked about fast track pathways, choosing consultants, choosing builders, and first project risks and the antidote. That was quite a lot a game for day five Bob. What was your do you think the big takeaway would have been there? Or what do you think is a mistake that people often make under any one of those?

Hilary Saxton (25:33.826)

the teams involved with those. We talked about delays, what to do when they happen. We talked about fast track pathways, choosing consultants, choosing builders, and first project risks and the antidote. That was quite a lot again for day five, Bob. what was your do you think the big takeaway would have been there? Or what do you think is a mistake that people often make under any one of those?

Well, we’re talking about approvals, it’s about getting the right team together. And that’s that’s important to get to get those those teams for both getting your development permit and your building permit C C. It it’s about team forming. We do a lot of a lot of that in our in our teachings. Getting that getting that right. But also d I think we went on to talk about builders, did we? Yes. Yep. choosing the builder. Choosing the builder choosing the right builder. And

see it it’s about team forming we do a lot of a lot of that now in our teachings getting that getting that right but also d I think we went on to talk about builders did we yes yeah choosing the builder choosing the builder choosing the right

Talk about like don’t get spooked because everything you see on TV is always about the naughty builders. You hardly ever see a good builder on television, hey. And even that project even that programme I watch sometimes with the certifier, the Greek certifying guy from it’s on YouTube from Victoria goes around and finds all the faults in buildings like it. You’d think all builders were bad if you watched that. You were watching it this morning and yesterday morning. I go in phases. my god. But it it is a I I haven’t watched him for like nearly a year. my god

Spook because everything you see on TV is always about the naughty builders. You hardly ever see a good builder on television. That’s a clickbait. Even that program I watch sometimes with the certifier, the Greek certifying guy from it’s on YouTube from Victoria goes around and finds all the faults in buildings like it. You’d think all builders were if you’d like to Can we just backtrack here because it it is a slight obsession you have, Bob. He was watching it this morning and yesterday morning. I know in phases. my god, but it it is a little bit catchy.

Hilary Saxton (26:50.89)

my gosh, he’s so funny. Hey guys, guys, check this out. And he just walks through dodgy builders. So but there are great builders and we’ve got great builders and we’ve had many mentoring students who have great builders. So don’t be spooked by that. That’s what that’s where you were heading. Or Bob’s obsession.

Check this out. But there are great and we’ve got builders and we’ve had many mentoring students who have great by that. That’s what that’s where you’ll No, no, there’s a there’s a lot of obsession. There’s a lot of things you could do to choose the correct builder process wise. So yeah, that was that was good. That that sort of tidied up that part of it with the building construction. I think we talked a little bit about building contracts as well, but without getting too heavy on the on the contract side of things.

So yeah.

Hilary Saxton (27:19.194)

trap side of things. Yeah, and that was kind of before that we then went to the wind up and we actually gave away one of our mastery programmes, which was awesome. I just didn’t even know where you’re going to do it. I got an English just before. So we ran a sort of a little session afterward because we had to go and create a drawer, which means we had to get everyone’s name and put them on a piece paper and put them in a hat and draw one out. But before we did that the wind up was action creates clarity and you have to take steps. Action

I wasn’t even aware you’re gonna do it. Well I got I got an inkling just before.

In-Person (27:42.307)

Action.

Steps action causes traction which will give you momentum and that’ll make it happen. And too many people live their life. I’m actually doing a podcast about this today in the Bounce Back Better Podcast. Around we’re living life now. We don’t we just can’t wait until. it’s just one of those things we get in the habit of putting things off and doing the same thing over and over, and before

causes traction, which will give you momentum and that’ll make it happen. And too many people live their life. I’m actually doing a podcast about this today in the Bounce Back Better podcast. Around we’re living life now. We don’t we just can’t wait until. it’s just one of those things. We get in the habit of putting things off and doing the same thing over and over and before we realise we’re just living in a cycle of momentum and b and you settle for mediocre and mediocre is where dreams go to die. And that’s that parking

we’re just living in a cycle of momentum and b and you settle for mediocre and mediocre is where dreams go to die and that’s that parking the parking

the parking lot of life, you’re heading toward a journey and then you pull into the parking lot because something happens is minimal but it’s a wee distraction and then you never get back on the journey and you wake up and you fail the rock and chair test. So it’s really about if this is something you want to do, then do it. Stop thinking, waiting until like just Lemon do it. Yeah. And I I had to pick up something off your desk yesterday and I saw a little stick.

In-Person (28:18.4)

Heading toward a journey and then you pull into the parking lot because something happens minimal but it’s a wee distraction and then you never get back on the journey and you wake up and you fail the rock and cheer test. So it’s really about if this is something you want to do, you do it. Stop thinking, waiting until like just them and do it. Yeah. And I I had to pick up something off your desk yesterday and I saw a little sticket note on your on your monitor. What did it say? It says life is happening now.

Yes. What did it say? It says Life is happening now. And I actually just wrote that yesterday and it was from I Go to Toastmasters. So the week before someone did a speech and that’s what they did it on, which inspired this week’s podcast really, because we’re not too bad at it at remembering to to live life now. And that’s the little things. It’s going to the movies during the week. It’s just you know, like last night it was Tuesday and I was like, I’m gonna go and buy us a bottle of wine and celebrate and I didn’t

And I actually just wrote that yesterday and it was from I Go to Toastmasters, so the week before someone did a speech and that’s what they did it on, which inspired this week’s podcast really, because we’re not too bad at it at remembering to to live life now. And that’s the little things, it’s going to the movies during the week. It’s just you know, like last night it was Tuesday and I was like, I’m gonna go buy us a bottle of wine and celebrate. That was great. And I text my sisters last night.

Yes. Because Bob had been given some really nice crystal glasses that were his mum’s and he was gonna put them in storage and I was like, No way, we need to use these. And it was to have a drink out of those and then he started telling me some stories about his mum and dad. And that’s kind of living life, like having a a little bit of a chat, doing something different, like, ooh, naughty house having a drink on a Tuesday. It’s not a normal thing, but it’s living life and remember that life is happening now. So

That were his mum’s and he was gonna put them in storage and I was like, No way, we need to use these and it was to have a drink out of those and then he started telling me some stories about his mum and dad. And that’s kind of living life, like having a a little bit of a chat, doing something different, like ooh

In-Person (29:36.484)

living life and remember that life is happening now. So if you’re thinking about property development life’s happening now and we can’t call it a water shiva there’s a water or petrol or whatever there’s always gonna be something. we’re doing it. If you want to do it you should do it. If you want to do it number one go and do the five day challenge inside five day if you can’t find it send me an email Hillary at property mastermind dot com dot

if you’re thinking about property development, life’s happening now. And we can’t cut a water shudder. There’s a water or petrol out, whatever. There’s always gonna be something. we’re doing it. If you wanna do it, you should do it. If you wanna do it, n number one, go and do the five day challenge inside five day if you can’t find it, send me an email, Hilary at property mastermind.com dot com dot AU and I will send you a link. Hillary has one L. So but yeah, jump on there and have a go at at the five day challenge.

dot com dot au and I will send you a link. Hilary has one L. So but yeah jump on there and have a go at the five day challenge. Five 30 minute slots download the workbooks work your way through it and think yeah I’m doing it and you’ll get to see how Bob and I work if you haven’t already. I’m sure many of you have been on our master classes and wherever all the stuff that we do the podcast and whatever goes on. But jump on have a have a go and if you decide property developments for you reach out to the team you can book a call you can email me Hilary

five thirty minute slots, download the workbooks, work your way through it and think, Yeah, I’m doing it. And you’ll get to see how Bob and I work if you haven’t already. I’m I’m sure many of you have been on our master classes and wear of all the stuff that we do, the podcast and whatever goes on. But jump on, have a have a go. And if you decide property developments for you, reach out to the team. You can book a call, you can email me, HelloRept Property Mastermind. But just get on the track and go for it. that was kind of the summary. And then of course we gave away

Just get on the track and go for it. that was kind of the summary. And then of course we gave away the ten thousand dollar prize. We did, ten thousand dollars, less three dollars, nine thousand nine hundred and ninety seven dollars. Giveaway. Just how excited that that’s life changing. It was. I mean you could give somebody a a second hand car worth that, right? Mm-hmm. And it’ll just get older and worth less money. Or you can give them something like that, totally change their financial future.

Hilary Saxton (30:38.436)

The ten thousand dollar prize.

Yeah, $997 giveaway. That’s life changing. It was. I mean you could give somebody a a second hand car worth that, right? And they’ll just get older and worth less money. Or you can give them something like that, totally change their financial and and intergenerational. I never thought of it. I just thought of that. You did. You know what though? You’re right. Because when you invest in yourself, that stays with you. It doesn’t devalue.

An intergenerational. I never thought of it. I just thought of that. You did. And you know what though? You’re right. Because when you invest in yourself, that stays with you. It doesn’t devalue. And then the money you make from that just goes forward to propel you. And I th that’s why it is th it’s goal. You get all the mastery sessions and the you know, just hanging out with us on a regular basis. How good’s that?

And then the money you make from that just goes forward to propel you. And I th that’s why it is th it’s gold. You get all the mastery sessions and the you know, ha just hanging out with us on a regular basis. How good’s that? f for those that like it. There’ll be some they’d be thinking, no, no thanks. But I suppose in summary, the five day challenge was great. We did enjoy it. You can still access it access it if you like. We’ve gone through what we covered, a few takeaways. Bob’s thumb rule, definitely worth knowing that one.

some may be thinking, no, no things. But I suppose in summary, the five day challenge was great. We did enjoy it. You can still access it access it if you like. We’ve gone through what we covered, a few takeaways. Bob’s thumb rule, definitely worth knowing that one. Or the finance thumb rule. Yeah, the finance rule you gotta watch it for that. Yeah.

Hilary Saxton (31:41.1)

Yeah, the finance. Yeah. Well there’s yeah, so it’s telling you how much equity you need to get started and what where that might come from. That was gold. But other than that, Bob, I think I think that’s it for the week. Next week we’ve got a we’ve got a couple of interviews coming up with successful students and deals they’ve done. Everyone loves those. Everyone yeah everyone’s a voice.

Yeah.

In-Person (31:52.232)

Next week we’ve got a we’ve got a couple of interviews coming up with successful students and done. Everyone loves those. Everyone everyone’s a voyeur. They to see what other people are doing and how they’re doing it and how well they’re going. And th they’re always very popular when we interview some of our s our well, our managing students are d out there doing stuff. Okay, well I think that’s it for us this week. I hope you got something from this. Go ahead and jump on that five day challenge or book a call or send me an email and we’ll catch up with you next week. Bye for now. Bye Yang.

Yeah. Okay. Well I think that’s it for us this week. I hope you got something from this. Go ahead and jump on that five day challenge or book a call or send me an email and we’ll catch up with you next week. Bye for now.