As a multi-unit developer, it is your job to become somewhat of a professional problem solver. Most successful real estate developers that I know all have this one thing in common. And that’s being proactive.
So, in this article, I’m going to share with you 3 reasons why it’s critical your approach and mindset as a multi-unit property developer needs to be proactive.
That’s of course if you’re into making more money than your reactive counterparts!
Now before we get into the 3 reasons why it’s critical you become a proactive developer. Let’s define proactive and reactive.
It’s pretty simple to understand, if you are proactive then you make things happen, instead of waiting for them to happen for or to you.
Active means “doing something.” The prefix pro- means “before.” So, if you are proactive, you are ready before something happens.
The opposite is being reactive or waiting for things to unfold before responding. Not a smart move if you are a property developer. Because everything is significantly amplified given the stakes are so high.
1. You’ll Make More Money
Not a bad reason to adopt a proactive development management style I wouldn’t have though!
In all seriousness. Getting on the front foot dealing with issues early and in some cases before they’ve even been flagged is going to save you time and money.
Meaning your bottom line is going to end up a lot juicier than if you sit back dealing with problems when they arise or come across your desk.
It’s easy to get caught up in the bright lights that’s part and parcel of a successful multi-unit property developer. You’re making good money so you lose the hustle. You kick back and start living the life only dealing with issues when they arise or cross your path.
While this might not be much of an issue when the market’s good and it’s raining money. I can assure you it’s one of the quickest ways to lose your way and lose money when things start to turn on you.
Remember Murphy’s law, if it can happen it will so your workflow needs to be as optimised as possible at all times.
“Anything that can happen, will happen”.
Being proactive starts as an attitude, you force yourself to analyse situations and circumstances looking for problems to solve before they become an issue.
So, if you like money and you want to make more out of your multi-unit developments then becoming a proactive developer is a no brainer.
On the subject of money, here are some property development cost examples which will give you some clarity around potential costs that you need to be aware of. And while I am at it, check out this article I recently wrote on development agreements.
2. It Will Minimise Risk
By operating with a proactive mindset you’ll always have your finger on the pulse. You’ll always know what is happening with your project at all times. And you’ll be able to identify and solve problems in real-time.
There is always going to be a level of development risk you’ll need to assume when developing. It’s the nature of the beast. It’s something you can’t and shouldn’t shy away from.
One of the best failsafe’s to minimise that risk is by having your head in the game every step of the way.
Never assume things will pan out as they are supposed to. Being on the front foot dealing with issues and solving problems in real-time will be critical to the overall success of your project.
So think about the development systems and processes you can put in place.
You need to ensure the way you are managing your project is with a proactive and not reactive mindset.
3. You Get to Enjoy Your Profits Sooner
Time, as I’ve mentioned countless times on the channel, is a multi-unit developer’s biggest enemy. Days can turn into weeks and weeks months at a rate of knots if you don’t have your finger on the pulse.
The best way to kill your time is to be efficient. A key ingredient to being efficient is being proactive.
A simple example might be …
You are about to settle a property and your broker is finalising your loan documentation for settlement.
Through experience, you know the bank requires building insurance as part of the documentation.
There are countless situations like these littered through the residential development process. In this particular situation, you can’t afford to rely on your broker to remember to request it.
A proactive developer will take control. They will arrange the insurance and get it sent over to the broker ahead of time.
As simple as this sounds. Little things such as the insurance for settlement pop up when you least expect it all the time.
If you aren’t on your game, as small as these little tasks might seem they can still have a significant impact on your project. Missing settlement or running around like crazy at the 11th hour isn’t how you want to operate.
Operate with a proactive mindset. Try and stay a step ahead at all times. It will allow you to achieve more day to day as you won’t get pulled in different directions when you can least afford to be.
Ultimately, if you are identifying and resolving issues ahead of time, you’re logically going to complete your tasks and subsequently the project on schedule if not before.
Remember the sooner you see some profit the sooner you can roll into your next project. And the sooner you can begin to compound your projects and your profits.
This is the only way to get ahead as a multi-unit property developer. It’s critical you give it the respect it deserves.
If you don’t have the time or appetite to live and breathe your development with a laser focus for the entire duration. It is guaranteed to affect your projects overall outcome and by the outcome I mean how much profit you will make and how soon you’ll see that profit.
If you have the time and appetite to become a multi-unit developer, awesome, you’re in the right place.
We’re here to accelerate your learning and get you up to speed as quickly as we can to ensure you are delivering successful projects every project.
If you’re time-poor and you’re looking for some help from experienced Melbourne property developers.
Don’t hesitate to reach out we’d love to hear from you 1300 799 277.
And lastly, speaking of being proactive, here are 21 questions you should ask a property developer when planning your project.