53 – The critical importance of risk mitigation in property development (Don O’Rorke part 2)

In this episode we wrap up the conversation with seasoned developer Don O’Rorke. Don is the executive chairman of Consolidated Properties Group. Consolidated is one of Australia’s leading development companies with a current work book of more than $2 billion. It is a privately owned company that has delivered more than 200 projects over the last 35 years. If you missed the first part of the discussion go back to episode 52 and catch up, as Don shared a lot of gold with us about how he got started in the business, the key projects they did along the way and lots of tips on succeeding at developing. In part 2, we continue talking about the lessons learned along the way including the importance of identifying and mitigating risks, adapting to the current credit market, and some of the projects that didn’t go according to plan. Don will also share a tale of a $200,000 cheque and why it is an important reminder to avoid legal litigation. Property Development Training If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site. The training includes a bonus program called Taking It To The Next Level for people who may want to go into developing full-time, along with another bonus course called Raising Capital which covers how to raise money for your projects. So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside... Property Developer Quiz Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at… Become a Million Dollar Property Developer Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory. In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way. Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development. This book has the answers for how you can make the leap into property development. Grab your copy now. Social Connection Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcastProperty Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast Lessons for real estate developers I hope you enjoyed that conversation with Don, as I certainly did. It goes to show what you can achieve with some ambition and determination. I got a lot out of my chat with Don, but here’s three things that really stood out: 1. Clearly identify your property development risks & mitigate them Don was pretty clear around the importance of managing risk through the development cycle. He said that each stage has risks and mitigation measures. Here’s some examples that Don suggested: 1. planning risk - mitigate that by getting a permit  2. delivery risk - mitigate that by appointing a good builder on a fixed price contract 3. take out risk - get some pre sales or pre leases in place, and make sure they stack up with professional valuations and 4. capital risk - put in place measures to ensure you have debt & equity pieces in place.