Ron Forlee - Real Estate Development Strategy for Investors

1. Chapter 1
2. Chapter 3
3. Chapter 4
4. Chapter 5
5. Chapter 6
6. Chapter 8

1. Chapter 1
2. Chapter 5
3. Chapter 6
4. Chapter 7
5. Chapter 8

RON FORLEE

First published in 2022 by John Wiley & Sons Australia, Ltd

42 McDougall St, Milton Qld 4064
Office also in Melbourne

John Wiley & Sons Australia, Ltd 2022

The moral rights of the author have been asserted.

ISBN: 9781119887324

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by Wiley

Cover Image: RomanBabakin/Getty Images

Disclaimer
The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

Ron is an architect, property developer and author. He is also the CEO of Phaeton Pty Ltd, a blockchain technology enterprise creating innovative blockchain solutions in real estate development and investment.

Over the past 42 years, Ron has been involved in a range of real estate developments, from housing estates and hotels to shopping centres, which he has managed and financed. As an architect, he has masterplanned largescale communities and infrastructure projects and designed commercial buildings such as shopping centres, office blocks and tourism developments in Australia, South Africa and China.

Ron has handson experience in real estate and infrastructure development through undertaking personal real estate developments. As an expert in real estate development, infrastructure, master planning and architecture, Ron has written and published several books on real estate development and building construction. He has also delivered papers at seminars about his primary interest.

In addition to his books, Ron provides online educational courses on real estate development through his website www.ronforlee.com. These courses are based on his experience over four decades as an architect and real estate developer. In providing these programs he aims to educate people to undertake developments properly. Developers make money by taking a significant risk, but this should not be their sole motivating factor. Developers are decisionmakers in creating environments for future generations. Their responsibility is therefore to create ecologically sustainable environments that all can enjoy.

This book would not have been possible without the support and encouragement of certain people. They have contributed to my life in many ways. I express my gratitude to:

My late mother, Mabel, who supported and encouraged me to live my dreams and taught me the importance of assisting less fortunate people.

My late wife, Cindy, who loved and supported me throughout our 38 years of marriage and showed me the importance of being happy and positive.

My children, Taryn, Jared and Charisse, who have loved and supported me in every possible way.

Ron Forlee B.Arch
January 2022

In 2004 I published my first book, An Intelligent Guide to Australian Property Development, followed by Australian Residential Property Development in 2010. In 2014, due to overwhelming interest, I wrote Australian Residential Property Development for Investors. This book is a sequel to that 2014 volume.

A significant aspect of real estate development is that it is creative in its built form. Deciding how to tackle a new development requires lateral thinking. There is no static or structured approach for a new project. Understanding alternative strategies places a range of options at your disposal.

This book covers various strategies, including forming syndicates and joint ventures, developing with minimal cash, creative financing, securing lowcost development sites and creating a real estate portfolio with passive income. It concludes with a review of modern technological developments such as costeffective construction techniques and blockchain technology. My case studies demonstrate how using these strategies over my long career has resulted in favourable project outcomes.

If you want to advance your career in the exciting world of real estate development, this book is a must read. Most readers will have acquired some development experience or at least have read my previous book, Australian Residential Property Development for Investors. This will make it a lot easier to understand and appreciate the ideas in this book and will arm you with a greater understanding of various development strategies. A confident grasp of the strategies examined will give you an edge over your competitors, help you secure the respect of your peers and development team, and prepare you to communicate on an equal footing with seasoned real estate developers.

Real Estate Development Strategy for Investors is comprehensive, providing important details on each topic. It does not follow a specific sequence, and you may choose to turn to a topic of particular interest as you need to. However, I recommend that you read all the chapters so you are acquainted with the broad range of options and strategies you can draw on during your career as a real estate developer.

Creativity is essential to successful real estate investments and developments. Real estate development is not static, and there is no standard structure beyond the basic principles. A project does not come to life from following a set formula. It starts with being creative and applying various development strategies. Seasoned developers who have worked on multiple projects approach a new development equipped with multiple creative options. It is creativity that distinguishes one real estate developer from another.

As you transition through a real estate development career, you should study the various real estate development strategies to resolve any problems in a project, such as financing or structuring a new concept for the market. First, though, you will need to fully understand the fundamentals and principles of real estate development, whether residential or commercial. In this book, we cover the following real estate development strategies.