When Everything Goes Wrong

Hi everyone,

There are weeks where everything goes to plan, and there are weeks that test you.

This week was definitely the latter.

Unexpected structural issues, delays and additional costs meant we spent less time growing the business and more time solving problems.

It’s not the glamorous side of property investment. Its not the side you see on Youtube or social media.

It’s the real side.

Building a business isn’t about avoiding problems - its about how you respond to them.

Despite everything this week threw at us, we dealt with every challenge head on and finished in a stronger position than where we started.

Here’s what happened.

The first issue came when we realised additional rip out work was required before the plasterers could start. It wasn’t in the original plan, but we refuse to cut corners and ensure our projects are completed to the highest standards.

Once the rip out was complete, we hit another setback. The new door frames had been supplied in the wrong size, meaning they all had to be removed and replaced before the project could move forward.

Then came the biggest setback.

Once we began to install the new rear door, we discovered there was no lintel supporting the existing opening. As work progressed, part of the wall dropped and had to be rebuilt before we could continue safely.

By the end of the week, these unexpected issues had added around £3500 to the refurbishment costs and delayed the project by a week.

It became one of them weeks where all the team had to dig deep. I was back on the tools, working late into the evenings to help keep the project moving.

Despite everything, we finished the week with the entire property fully boarded and ready for plastering.

Not the week we planned, but one we’ll certainly learn from.

Whilst Project One demanded most of our attention, we still made some good progress on Project Two.

This week we completed the full rip out, finished the structural works and installed the new loft floor.

However, as the property was stripped back we uncovered more work than originally anticipated.

Much of the internal structure has to be taken back to brick, increasing both the scope of works and costs.

Again, this wasn’t part of the plan, but uncovering these issues now means we can put the right properly rather than leaving problems hidden behind fresh plaster.

Overall, despite the additional work, the project continues to move in the right direction and is now ready for the next phase.

We’re now on Day 26 of our 30 day funding sprint, which means we have just 4 days remaining to reach our target.

So far we’ve raised £18,000 and I want to say a genuine thank you to everyone who has invested and supported Asset Collective so far. Your trust means a great deal to us.

I was in two minds about wether to share everything that happened this week.

It would be easy to only share the good news, but thats not what Asset Collective is about. I genuinely believe its important that our investors understand not only the projects they’re investing in, but also the person behind them.

Challenges are inevitable in property development. What matters is how you respond to them.

This week tested us, but challenges are there to be solved. I jumped back on the tools, reprioritised the work, supported the team on site and worked every hour possible to turn what could have been a much bigger problem into a one week delay.

Looking Ahead

Whilst this week has been one of our most challenging, it has also reinforced why we do things the way we do.

Every issue we’ve uncovered has now been dealt with properly, both projects are moving forward and we’re in a much stronger position heading into next week.

Our focus now is simple:
- Complete Project one by the end of August
- Complete Project Two by the end of September
- Complete the final four days of our investment raise.
- Acquire Project Three before the end of Q3

One Final Thought

This week reminded me of an important lesson in property development:

Every problem you uncover can be solved.

Usually it’s one of two things:

Time - Unexpected issues can delay a project. The key is reacting quickly, prioritising the right work and keeping that delay to a minimum.

Money - Additional costs are a part of property development. Thats why we don’t rely on the property market going up or the project going to plan to make our profit.

We make our money when we buy, purchasing below market value and building enough margin into every project to account for the unexpected and the very worse case scenario.

Thats exactly why we’re able to deal with challenges like this without compromising on the quality of the project.

Building a property business isn’t about hoping nothing goes wrong. It’s about planning for the reality, sometimes, it will.

Did You Know?
Leaving your money in the bank right now is likely earning you less than inflation, meaning your cash is actually losing value over time.

Till next time,