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articles > A Small Step to Profit from Land!
A small step for you. A huge leap for your bank balance!
Article kindly provided by Lyndon Forshaw 
 

As we begin a new decade, many of you will be looking to maximise your income and broaden your approach to property. For many BTL and land investors, developing for profit is a natural progression. In fact, it was the path I took – and I’m sure glad I did. The potential profits can be truly staggering...


“How much experience do I need?”


I didn’t know anything about construction when I started out… and I still wouldn’t know how to place one brick on top of another! But if you have the right team around you, including a good architect and a quality single main contractor, you can leave all the hard work to them! If you use industry standard ‘fixed priced’ contracts, the contractor handles all the construction work within an up-front agreed price – so you won’t get any nasty surprises, therefore minimising risks.


“What about the finance?”


Restrictions in the finance market are easing, so developing is becoming viable once again. Lenders are returning to the market with new development finance products and loan-to-value ratios are increasing all the time. 65% loan-to-value is once again achievable for certain deals.
Of course, the most critical element of the deal is securing the land at the right price. If there's enough capital tied up in the land, then it's possible to fund the deal with little (or possibly no) money down…


“What about the state of the market?”


Recent news reports suggest that we may be slowly emerging from the recent property crash. For example, Barratt recently announced that forward sales are 43% ahead of a year ago. Plus, RICS figures show that house price rises are likely as demand for available property outstrips supply. That’s why I recently took my first steps back into developing. Although I’m only developing a very small site of two semi-detached houses, the project should return a healthy profit for very little “work”– no more than two or three hours per month from start to finish!

The return on my time from a small project like this is significant – hopefully around £70k. I anticipate that this development will take around six months. I’ll be keeping an online diary of the progress of this project.

If you’re interested to see how it’s coming along, keep an eye on my blog at www.ukpropertyexpert.com

If you’re interested in finding quality development land, a great place to start is www.LandLounge.com – a specialist online land agency run by my brothers Jonny and Glenn. There are many exciting opportunities listed, with and without planning, across the UK. And we’re at your disposal to help you to approach landowners and broker discounted or JV deals!

So will 2010 be the year you take the next logical step in your property career? Will it be the year you start to supplement your “slow burn” BTL income with comparatively quick, life changing profits from developing? It really isn’t as difficult as it sounds. If I can do it, anyone can!

Want to learn how to earn FIVE and SIX figure profits from a plot of land - without buying or owning an inch of it?!

www.ukpropertyexpert.com

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