Property Development with No Money is something that every property developer dreams about but very few achieve this feat. Doing a No Money Down Deal, is what attracts most wannabes in the property development industry. There are property development seminars dedicated to exploiting this ever elusive property development without money.
Why? because most of us want something for nothing. We wish the best of houses, best of cars, best all material things without ever doing much for it. So the wannabe property developers get lured into such seminars & fast forward 12 months, they've achieved nothing. I know many people reading this article have been to such workshops, and the only reason they went to these seminars was that they figured that their property guru would put in his/her money and let them take a profit. To these people, I ask this, How is Property Development with no money going? Did you learn any real skills, did you option a deal?
Stand in front of the mirror, and ask yourself honestly, knowing what you know about yourself, your experience, your skills set & your drive.
If your answer is an honest Yes, then you should continue reading the rest of the article as I discuss different strategies on how you can do property development without using your own money.
In order to become a property developer with no money you need to make sure that your investors know, trust and like you. Now I know that most of us will have no problems with either of the three. We all have friends and family, who know us, like and trust us. However, when it comes to someone trusting you with their life's savings and hard earned money, it becomes a becomes a business decision. TRUST splits into further two parts. Trust is made of two things, character and competence. Most people will tick the character part. Their family knows them and trusts that they will not misuse or squander their money an will protect it just like their own. However, do your friends and family also believe that you have the competence to execute the development? Do they think that you have the necessary skills, experience & tools to source, stack, structure and execute a property development project?
Property development without money requires many skills and a complete understanding of all moving parts of property development. From market research, site sourcing and acquisition, financial feasibilities, financial structuring and managing your development. If you think you are good at construction, I can tell you right now; it's not enough. Why do you think most builders go under? If the knowledge of construction alone was the key, why aren't all the builders doing well in development? To become a no money down dealmaker, you MUST understand the in's and out's of property development. If you are interested, you can read the Ultimate Guide to Getting Started in Property Development.
Property development with no money is excellent, as it doesn't require any money from you. However, it comes with a moral burden and a ton of responsibility and fear. Not fear of losing your money, but if you are a developer with integrity, you should feel personally responsible for other people's money & also fear for their money. Because if things go wrong, although you won't lose any of your own money, you will lose your credibility forever. Personally, I would rather lose money than lose my name, even if it's just once.
If you want to become a property developer without money, you have to be ethically & have a higher than average standard of integrity for yourself. Your number one goal is to look after your investors; you have to put them before your interest, they, i.e. your investors come first. Understand, that your investors are your clients. If they are happy and they're making money, you will always make money. So make sure that you go out of the way to help them, you bend over backwards to make sure that your investors are making money. They always come before you, and it's all about them. Give them more value, have their best interest at heart and make sure that they win.
There are four ingredients of a no money down deal, and it's the only way you will be able to make that deal happen.
The only way you can make a no money down deal is if you have in your hand, The Deal of a Lifetime. Think about it; if you have a really good, lucrative property development project in your possessions, you will be able to find investors reasonably quickly. When I say a deal of a lifetime, it's in the sense that the deal is a no-brainer, it ticks all the boxes. Even your drunk friend knows that this deal has much profit in it. The downside is that the deal of a lifetime is a thing that happens very seldom & only to those who are actively looking for such opportunities.
Almost every deal that makes a 20% developer margin is a good project, other variables being constant. However, the success of that project also depends upon how you present it to them. In other words, your project is such, or their circumstances are such that what you present or propose to them has the best possible outcome for them as compared to their current situation. While presenting, you should compare and contrast with what they've got on hand with the opportunity that you have for them. You also have to contrast the risk and rewards situation so that they understand what's involved in it. This is where you need to uphold your integrity. Do not make any fake promises, make sure that you look out for them and always understand that they will only come to you if they can see that your opportunity is much better than their current situation.
Everyone is inherently driven by fear, so the only way your investors can overcome that fear is if he or she knows more. You've got to educate them on the process which takes time. Besides, you have to deal with their mindset. Your investors will not necessarily be on the same page as you in terms of their intrinsic beliefs & their mindset. They might have access to money, but they do not have that mindset to be able to go out and do the development. But a lot of time it's because they don't know as much as you do, they don't know what's around the corner, they don't know what to expect next, and they don't know how it's going to pan out. So you need to take the lead and educate them about the property development process. Get them to verify the process from their trusted sources or their trusted advisors, lawyers or accountants or friends & family. Your job is to show them what the development process is, what is your project's timeline, what is a property development feasibility study? What do the numbers mean? Show them development case studies and present your business case. Then let them go out and get it verified from their trusted sources.
Potential property investors go through their awareness stage. This is the stage where you as a property developer need to spend the most time educating them because they don't even know what it is like to be part of a project. Unless you find someone who is already familiar with property development, which in the case of your friends and family may not always be true.
After you make them aware of the possibilities in a project with you, the second stage would be the consideration stage. While they are considering the project, in their minds they are already contemplating the pros and cons of your project. They are also considering how their finances are going to pan out? They are unsure so they're talking with their friends, they're discussing the project with their other family members and are trying to get as much advice from other people as possible. At this stage, they are listening to stories from anyone and everyone they are in touch with about property development. Mostly, they are listening to horror stories. Horror stories about how a deal went belly up and how a developer didn't give them their uncle the money and how he got ripped off? The only defence that you have at to tackle these horror stories is to make sure that the property development business case you present to them is logical, coherent and thorough. It has been carefully researched, and your financial feasibilities are spot-on.
The third stage is the preference stage & is the deciding stage where they either prefer your project or someone else's. So far, they've been made aware of how a property development project unfolds, and they've considered your deal. However, now it's all about preference, now they have to choose between your property development business plan and someone else's, and the way you can set yourself apart is by presenting them with a business case or your project report. Your project report should include your research, your due diligence, our feasibility as well as your assumptions. The more professional you are with your research and your business case, where every assumption is backed by facts and figures, the more trust you will generate and even for your yourself, this kind of thorough business case will give you the confidence to be able to address questions from your investors.
The fourth stage is action as to whether or not they want to go ahead with your project. Basically, at this time they're consulting their lawyer & accountant. They are reading the unit holder's agreement; they're reading your development management agreement, they are going over all legal paperwork with a fine comb with their trusted advisors. Their lawyer is now advising them on all the bad things that can happen to the project & whether they are covered legally and all the clauses they can add to cover themselves. This is where you need to make sure that your lawyer and their lawyers are talking to each other. You will need to facilitate this process as if you were to leave this in your or their lawyer's hands, I can guarantee, that your no money down project will never get off the ground.
If you manage to get your first property development project with no money off the ground and deliver this project with good returns, you will win your investors for your second project. The reason I say, that you've earned them for your next project is because an investor is also doing business. If they do a project with you once, is it likely that will continue to work with you, but it is also likely that will continue to seek the best opportunities with similar or lesser risk for their investment? This should not upset you in any way, it's their money, and if you were in their shoes, you too would do your best to get the highest return with the lowest risk on your money. The only way you get to keep your investors is by being 100% transparent in your dealings with them, by showing the integrity of the highest order and by being genuinely professional. Click here for a list of all Property Development Courses.
Now you can learn to use this fool-proof Property Development System to find the best development sites quickly and easily… diffuse the risks by following the simple due diligence checklists… and follow the project flow-chart to orchestrate the whole development… without using any of your own money…
Imagine this. Signing the contract on a multi-million dollar development site that stands to make you hundreds of thousands of dollars, simply for ‘masterminding’ the whole deal ….
A deal where you didn’t contribute a cent of your own money.
Many property ‘gurus’ talk about ‘no-money-down deals’. And make them sound easy. But nobody shows you HOW to put one together. Until now. Because I’m about to show you…
It all started just 5 years ago. I was a bright-eyed newbie. And along with thousands of other property hopefuls I attended all the seminars and paid thousands for manuals, CD programs, and even private coaching.
But like most of the people I met at the seminars, I was quickly disappointed by the same shallow information that told me WHAT to do but not HOW to do it. There were lots of inspirational stories, but very little detail. And certainly no step-by-step system.
I wondered if it was my fault. Was I missing something? I mean, the speakers made it look easy. Why couldn’t I figure this out?
I was so frustrated. We all were. Many people I met simply gave up. Some speculated on risky mining town property and lost their shirts. And others just keep going around in circles – attending seminars, buying products… but doing nothing.
But I didn’t give up. Because I knew deep down I wanted to be a property developer. And that if I just kept learning I would make it. So I continued my search for answers. And most importantly, I started to take action.
Now, just 3 years later, I have successfully completed 5 developments and am working on my sixth worth $53 million.
Saying that out loud seems unbelievable to me. Three years ago I would never have thought it was possible. I mean, I’m just an average person. And when I sat in that first seminar, I knew nothing.
But as I listened, learned and took action, I put everything down on paper and started to develop a system – a process of action steps and checklists that diffuse the risk and keep me on track in finding and completing property development projects. But before I tell you more about my system…
Here’s the story: Early in 2014 my builder told me about an acquaintance who needed money fast. (By the way, when you are looking for opportunities, you’ll be amazed how often opportunities come your way.) Anyway, although I hardly had a dollar in the bank, I agreed to meet him.
Apparently this person (let’s call him Mr A.) found himself in some financial difficulties around 3 years earlier so he sold his property to one of his clients (let’s call him Mr B.). But he structured the sale so he would have an option to buy the property back in 3 years at an agreed price.
In the meantime, property prices rose far more than the agreed price, so Mr A. was keen to buy the property back and make an instant profit. The trouble was his business had gone down and he didn’t have any money.
This didn’t worry Mr B. as he naturally wanted to keep the property or sell it to someone else for far more money.
When I met Mr A. he had 90 days to come up with the money — $1 million. He told me he had arranged a loan of $600,000 but needed another $400,000.
I made a few calls and managed to get expressions of interest totalling $300,000 (based on a Project Report I would create).
So I got busy with market research, due diligence and a financial feasibility study. Then I created a Project Report – very similar to a Business Plan a bank requires when you want to borrow money… but more detailed.
I then made an appointment with my lawyer to check all the legal details and to make sure all parties were protected if something went wrong. That’s when…
It turned out Mr A. had arranged to borrow his $600,000 from a loan shark at a very high interest rate. This meant this ‘lender’ would have the first mortgage on the property and the other investors would have no claim if something went wrong.
The risk was unacceptable so I went back to the drawing board to find another way to structure the deal. I talked with my property mentor about it and he advised me to stay away from this deal as it was too messy.
I was discouraged. But I had not given up.
That’s when I remembered something I had read: “Opportunities do not knock on your door, they stand quietly on the side waiting for you to recognise them”.
With renewed enthusiasm I looked for a way to make this work. I knew I needed to find more money and more investors. And so I asked myself the question: What would I need to see in order to feel comfortable about investing in this project?
I redid the financial feasibility study based on the new numbers. I carried out even more market research and due diligence. I dug deep and uncovered all the potential ‘holes’ in this project. And found ways to plug them up.
I sought advice from town planners, spent hours developing creative designs with architects, and had critical meetings with council.
I dotted every ‘i’ and crossed every ‘t’ because I knew prospective investors would want DETAIL. That’s what I would have wanted.
I collated all the information in a professionally presented folder knowing that any serious investor would take my report to their Accountant and Lawyer. It looked like a million bucks. And it worked.
After fielding a barrage of questions from potential investors and their advisors, four parties agreed to put in a total of $1 million. But then…
Everything worth doing seems to take way longer than you expect and suffer significant roadblocks along the way. And this project was no different.
It took 14 months to finally get council approval. This included facing 24 objections from neighbours who acted like vigilantes distributing flyers and going door-to-door trying to scare people into opposing the development.
This is where solid due diligence, research and professional advice is critical. My planning paid off and council finally approved our development of 16 apartments.
On paper, all investors had already doubled their money. The total GRV (Gross Realisation Value) of this project was $12.3 million (on a bad day). And as reward for my labour, I received a 20% cut. But then…
One week before settlement, one of our investors pulled out. We were suddenly $25,000 short. So I had a choice. Would I dig my heels in and allow the deal to collapse because it was supposed to be a no-money-down deal? Or would I come up with the $25,000 myself in order to get it across the line?
I swallowed my pride, emptied my bank account, and injected the last portion of money giving me a 21% share in the project.
Although unplanned, this gave the other investors even more confidence in the project because I now had skin in the game (an important lesson I learned that day). It took 14 months, and I had to inject $25,000 of my own money, but I was now on track to make $650,000.
Naturally my friends had been watching as I put this deal together. And now that it was successfully going ahead…
They Wanted To Know How I Did It
They already knew about the traditional ‘buy and hold’ strategy of property investing – where you use ‘Money + Time’ to grow wealth. But this was different. They saw me start from zero (or $25,000 to be exact) and use ‘Ideas + Expertise’ to Make Money Out Of Thin Air.
A lot of money — more than half a million dollars in less than 2 years. And they wanted to know how they could do it to.
So I started to explain some of my deal making strategies to a select group of mentees in Melbourne. It was then that I realised WHY I was able to put together 5 profitable property development deals in my first 3.
I had found the secret – the key that I didn’t get from all the seminars, products and coaching I had done up to this point. I realised, by taking small action steps as I learned, I was developing…
A formula for putting together no-money-down property deals. And as I taught it to this first group of mentees, I documented everything so they could do exactly what I had done. And now I’d like to give you access to the same formula that allowed me to make $650,000 from a single no-money-down development.
The No Money Down Property Development Formula is the first complete, stand-alone training program that takes you behind the curtain so you can see exactly how my $12.3 Million deal was put together. Plus it gives you the systems and templates I used to make the deal a reality.
If you want a property strategy that is faster than ‘buy and hold’ – a way to use your property knowledge to make money out of thin air and replace your income in just a few short years — you’ll get a lot of value out of this training.
But I must caution you: property development is not for everyone. Some people are more comfortable with traditional buy-and-hold investing. And although I think developing is a safer strategy (because the 20% developers margin acts as a buffer against things that are out of your control), many people feel traditional investing is more in their comfort zone.
I must also remind you that my results are not typical. And I am not promising you will make anywhere near $650,000 or complete 5 successful development projects in 3 years like I did.
Remember, most people attend seminars for years and buy all sorts of books and educational programs, but do very little with the knowledge they gain. If you want results, you have to back yourself and take action.
But there are ways to short-cut your learning curve. I’ve always found it better (easier, faster and cheaper) to follow in the footsteps of those who have done what I want to do. And that’s why I want to give you access to the little-known No-Money-Down Property Development Formula I use every day in my business including…
The No-Money-Down Property Development Formula literally gives you behind-the-scenes access to everything I did to pull off this $12.3 million deal and make $650,000 for myself and my investors. Every conversation. Every nugget of research. And even my inner thoughts as I pieced this deal together.
But that’s not all. I don’t want to merely show you WHAT to do. I want to give you the critical HOW TO information that was lacking from all the property education products I bought. I want to give you the tools and templates so you don’t have to create anything from scratch. You can simply follow the steps and literally copy what I did. And that’s why I’d like to give you this…
And to make sure you know exactly how to use the templates I also want to give you my…
Simply follow along as I walk you through each template and show you how they fit into the process as a whole. You’ll be up to speed in no time – using these tools like a pro. Saving you years of expensive trial and error.
Many people pay thousands of dollars for expensive seminars to learn how to become better investors. But they never actually come away with tangible systems and templates they can use and apply in the real world. I know this first hand. Remember, I attended all the seminars, bought many of the products, and even paid top dollar for private coaching.
The No-Money-Down Property Development Formula is different. I’m not just giving you the WHAT to do, I’ll explain exactly HOW to do it. And in this one-of-a-kind program, I’m even giving you ‘behind the scenes’ access so you can see exactly how a multi-million dollar deal is put together in the real world.
Plus, I’m giving you the tools and templates so you don’t have to waste months creating your own… or pay thousands to professional advisors who may not have specific experience in the real world or property development anyway.
Short of investing $25,000 to become a personal mentee, there’s no other way you can get exposure to this level of ‘behind the scenes’ information.
Of course you could try to learn all this stuff on your own. You could spend day and night developing your own systems and templates. That’s what I did. And I can tell you, it’s a tough and expensive road to travel.
I can’t tell you how many sleepless nights I’ve spent pacing the floor looking for answers to challenges. Or how many times I’ve lost thousands through silly mistakes. But that’s nothing compared to the deals I’ve missed out on – the opportunity cost – because I didn’t have the information I’m giving you in this program.
But, I also appreciate you may not know me yet. So I don’t want money to prevent you from investing in this program and beginning a lasting association with me and my company.
So here’s the deal: I’ll let you have the entire No Money Down Property Development Formula for just one payment of $997.
That’s just 3% of the fees you might earn on even the simplest No-Money-Down deal.
Why So Cheap When I Could Easily Package Up This Training Into A Multi-Thousand Dollar Seminar?
So if you’d like a faster strategy than traditional ‘buy-and-hold’ investing… and you’d like to make some serious money and replace your income… I invite you to get your copy of the No Money Down Property Development Formula including the video training and downloadable templates to catapult into your 1st property development with no money.
Simply click the ‘Buy Now’ button below…
…submit your details…
…and you’ll get instant access to the entire training.
* TIME-SENSITIVE NOTICE: At this price point it's just a marketing test. Based on our test results the price may go up significantly. Or not. Or I may never offer this program by itself again. I don’t know. But if the price does change, it will happen without any notice.
So if you want the entire training for just $997 and make the leap into the world of No-Money-Down Property Development, I urge you to jump at it now.
How to Control Property with little money?
The 5 Reasons Buy-And-Hold Investors Fail At Property Development (And How To Avoid Their Mistakes!)
Property Development Team
Property Development Process
How to finance your property development project?
Property Development Course Reviews
Here is What Industry Insiders Say About How To Manage Risks in Property Development?
Three ingredients for a No Money Down Deal – Property Development