How to De-Risk Development - Interviewing Paul Abercrombie
Episode description
What are the top three problems that occur time and time again in developments?
In this episode Dan speaks with entrepreneur and speaker, Paul Abercrombie from bulletproof developments. They talk about Paul's experience in the development world, how to de-risk projects and how you to be successful in this field.
KEY TAKEAWAYS
- Paul has vast experience as a development manager in various family run businesses. Over this time he has seen the same common mistakes made by developers again and again. This is one of the reasons he founded bulletproof development.
- The biggest problem he has found is that developers don't set risk management standards. Good developers have the same approach each time. Those who aren't experienced or have perhaps become too emotionally involved in a project, can find themselves making the numbers fit, rather than being objective.
- Once you know your GDV figure, be realistic and work backwards, don't be too eager and find yourself being optimistic. It might sound pessimistic, but it's important to have that buffer.
- When starting in talks with an investor, always calculate the interest costs based on the full amount of the loan for the term of the loan.
- You can balance your risk in development by diversifying your contractors. You can mitigate risk by using multiple contractors and having sub-contractors with various packages. Then if something fails, it is easy to replace just the one contract.
- When you add a design element into a contractor, it becomes more expensive because to them, it represents risk.
- Implement a document management system. Don't just use your emails, this can cause huge cost and delays if something becomes misplaced. It's something so simple but key to a successful project.
BEST MOMENTS
“They can easily avoid mistakes before starting development”
“He's never seen a project that has gone on with no problems”
“They are the highest risk but the highest reward”
“Stick to what you know"
ABOUT THE GUEST
Paul Abercrombie
Entrepreneur, Speaker, and Founder of Multiple Businesses. Paul is on a mission to help business owners and Entrepreneurs achieve success.
"In 2008 I left my full-time job to follow my dream of owning my own business and building a better life for me and my family. Since then I have started 12 businesses, generated millions in sales revenue and employed hundreds of people. I have also had some epic failures, made many mistakes and it's my mission to ensure other can learn from my experience, avoid the mistakes I have made and achieve success in both life and business!”
ABOUT THE HOST
Dan Taylor
Dan has completed over 36 transactions with a value in the tens of millions, though more importantly, he has added significant value by combining creative commercial property strategies and business buying strategies.
Working with existing property investors and SSAS Pension owners. Dan helps accelerate your income, grow your wealth and reclaim your time to live life on your terms.
Dan believes acquisitions are simply the fastest route to create cash flow and generational wealth.
Dan loves to help investors create cash flow and grow their wealth by investing with him.
Dan and his team do the deals so you don't have to.
Do you have a SSAS Pension or cash that's not producing income and simply don't have the time to do it yourself, then get in touch and if you qualify you may be able to invest with us acquiring businesses and commercial property.
CONTACT METHOD
Clubhouse: @taylorcapital
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