So I speak with an experienced developer who sheds some light on what he focuses on to achieve success.
Danny Ciarma from Urban DC has more than 15 years of developing experience, and has an impressive record of completing a range of projects including some beautiful apartment buildings in Melbourne. He is also doing some projects in Sydney, which he will talk about during our discussion.
I think you will enjoy hearing about Danny’s approach to developing and some of the aspects of the process that he really focuses on.
In this conversation we talk about the number one factor that Danny chooses sites on, his thoughts on debt, the importance of design and how you can stay ahead of the market.
I thoroughly enjoyed sitting down with him and talking about developing. Danny has delivered some beautiful buildings so I would encourage you to check out the Urban DC website and see what he has been up to.
Tips for real estate developers
1. Buy in AAA locations if you expect the highest returns
We all know the importance of location, and Danny made a great point around not expecting to achieve high prices if your location won’t support it. Don’t buy in a B-grade location and expect A grade results, just to make your numbers work, as you are setting yourself up for failure. What’s that saying Warren Buffet has ‘better to buy a great company at a fair price, than a fair company at a great price’, same applies to real estate.
2. Consider how much debt you take on
Danny offered some prescient advice on debt. Are you giving away too much of the deal for your own good? Is a little of something bigger, better than more of something smaller? It can be hard to pass up a deal, but remember you are going to be working on this for a couple of years so you want to get rewarded appropriately for all the effort that is going to be required.
3. Focus on staying ahead of the market
Danny suggested some good ways of staying ahead of market trends, such as keeping in touch with agents, and possibly speaking with other developers so you can remain aware of what buyers are looking for. This can help ensure you remain relevant in the marketplace, and bring something to market that is desirable.