Good morning All followers/ Future developers
I might get a bit carried away with this post and I might dwell a bit on the past…but I feel its necessary to understand time and what can go wrong with believing everything you hear. Being new in housing development opens you up to be slightly taken advantage of especially when you don’t understand certain things.
You like a piece of ground. You want a piece of ground. You want to buy a piece of ground. Simple, right? Unfortunately its not that easy.
Once you have the ground in sight, you need to enter the negotiating phase. This is when you need to start building a relationship with a good attorney, one that will be on your side, one that will want to protect your needs and wants and one that will guide you in the right direction. I was very fortunate to be in a position where I was given one from my accountant. She was already briefed to looking after my benefits and making sure I will be in the best position to give the clients what they want, yet make money doing it.
The questions you need to ask your new attorney is all about the tax implications and also implications that can arise with time regarding your property. Understanding these will make your life a lot easier. Time is the biggest issue that one needs to overcome or at least work with. It is also one that we can’t change but we need to adapt with it to make it work for us. Ive had some very interesting run-ins with time, so I feel its a very important topic for me. When you enter into an agreement, you need to understand the possible delays. The delays can cost you tremendously or work in your favour. When I say it can cost you tremendously, I have experienced it. You enter an agreement with a land developer with the promise of certain things. Promises mean absolutely SHIT in a contract. You can moan as much as you want, but in an agreement that bounds two parties you have no leg to stand on unless it is a suspensive condition to the sales agreement. Understanding this, you will already be a step ahead.
This issue above, could’ve sunk me right then and there. In a very very very competitive area where I am currently doing a few projects, you end up trying to show whose got a bigger “you know what”. Unfortunately, one can bite off more than one can chew, following that philosophy. What happened over the past few years was each new phase of land was released one after the other…roughly around a 5 month period in between. This was perfect, as it gave us the time to roll properties, one to the next. As its very competitive and trying to gain some ground as a new developer, you try and buy from phase to phase so that you actually get property. Basically all that was required was a non-refundable deposit and you only have to pay or issue guarantees “ONCE THE SUB-DIVISION GOES THROUGH”. Should you not do this, the bigger guys buy all the prime land and you get left with the scraps…This is where I made the biggest mistake of all, I was promised one thing, signed the agreement and went on with my usual business and what happened next is certainly something that should be avoided.
At the time I was busy with two properties which were set to register with the clients whom purchased it for me at the same time I was meant to pay for the next 3. I decided that I was done with building two at a time as I was growing right? I was growing from strength to strength. I was ready to take it to the next level. I have over come issues and I had the ego to keep moving forward. Not quite… I wanted to show the developer that I am not all talk and that I can put my money where my mouth was and buy 3 plots in the following phase, 2 in the following phase and another 3 in the phase after that. It was great, as I paid a small deposit and was promised that same deal…5 month delay between phases was perfect, perfect for me to keep rolling the properties and keep growing…Time however it bit me in the ass…the first 3 registered at a reasonable time after the one sale went through…so I was covered. What happened next was discerning and knocked that little growing ego back to reality. The next 5 plots came up and required payment 2 months from each other.
I was done.
I was stressed.
I had now jeopardized not only the building business but that of my core business that got me to this position. The easy way out was that I just had to cancel the sales and lose my small deposits on the land that I couldn’t afford. This option seemed viable but doing this would’ve resulted to me being blacklisted with the land developer and not be given the opportunity of this process again. It took loads of soul searching and stress but everything fell into place. I had to offload 2 plots to regain cash flow and get a bond to cover myself. I had to still finish two houses. And obviously continue trying to focus on both businesses. One business helping the other to get through the sinking sand.
This my friends was a real wake up call. Don’t always believe promises. Don’t always take what people tell you to be the truth. Align yourself with attorneys that will work with you and will guide you through the thick and thin. Also, be patient…Patience is the only way to get through things. It will also stop you from biting off more than you can chew. I’ve had to learn that Rome wasn’t built in a day…It’s easy when its just words but when it eventually resonates with you, you will understand the true meaning of it. Learn to take each day as it comes. Things happen for a reason, challenges are put in front of you, not to stop you but to make you accomplish them.
Phew, I definitely got a bit carried away.
But at least you understand Time with MY experience…I will get in to the rest in my next post haha.