Ritchie Clapson: Revolutionizing the UK Property Industry with Property CEO
Hi Everyone,
I hope that your weekend has started well, and that you had a good week before that.
I have had the most amazing last 3 days in the company of Ritchie Clapson and his partner Ian Childs and their amazing Property CEO property training and mentoring team on a Fast Track programme.
These guys really are on top of their game just now, and they have assembled a team of expert professionals around them that is quite impressive, and I´ll tell you about them and their systems below, in case you have not hear about these guys. They are still relatively new in the UK, and as far as I am aware they do not operate in any other countries yet.
Introduction To Property CEO
Prior to the 3 day intensive training event I, like all the attendees of the Fast Track event received a 48-page workbook that set out the agenda for the journey that we would all be going on during the 3-day Fast Track event. I like that approach of sending out a workbook as it gives the reassurance that the content of the 3-day event is well planned, and it certainly was that! There was a massive amount of content reviewed during the 3 day event, for which you had to pay attention otherwise you would miss some of the excellent content. There was no recording of the event, so you had to pay attention otherwise you snooze and you lose!
Ritchie Clapson sets the scene for his training by explaining in the introduction and welcome message to the Fast Track workbook that there is inherent risk in property development and that you or anyone wanting to embark on such a potentially risky journey needs to be well trained and also supported (by a suitably qualified team of professionals) before you embark on this journey. "You need to know what you dont know" is the way that Ritchie puts it, and as he rightly says, "there are a lot of moving parts".
Of course Ritchie is absolutely right here, and when you think about anyone developing a property either this year or last year or a hundred or a thousand years ago would have to surround themselves with the right qualified professionals before embarking on any development project.
And of course with many human endeavours, particularly those bringing together lots of different resources from different places and assembling them in a bespoke plan, there are plenty of things that can go wrong.
Unless you are rolling out a standard product, for example a Starbucks coffee bar or a McDonalds restaurant where there is a standard for what is being produced and an operations manual and systems, then you need to start from scratch.
So rather than making your project(s) unique and one-off, you should try to systemise the process as far as possible, and thereby reduce the risks.
Both Ritchie Clapson and Ian Childs have decades of property experience and certainly Ritchie has spent much of his working career time as a trusted advisor of Government in the UK, who has been asked to check structural calculations for some famous structures such as the Olympic Park in East London, and the retractable roof at Wimbledon.
But Ritchie and Ians course is not about structural engineering, it is about property development and their mentoring course encourages you to act as the Chief Executive Officer CEO of the business, building a team of trusted advisors around you and properly evaluating property development prospects, and properly organising them and arranging them for success. Hence their business name is Property CEO.
Ritchie and Ian have developed an 8 pillar system for success, which they use to mentor and teach their mentees.
Permitted Development For Low Risk
The thing that appeals to me particularly about the training from Ritchie and Ian is that they encourage "low risk" property development. What I mean by this is that they encourage carrying out property development that does not require Planning Permission. Thee reason for this is that the Planning Approval system in the UK is broken. What i mean by this is that anyone submitting a Planning Application in the UK usually has little certainty when they submit their planning application, just how long their application will take to be reviewed by the Planning Officers and when they may receive a response. When the applicant receives the reply from the Planning Office it may be a rejection, or it may ask for more information. You would be extremely lucky to get a straight approval on an application the first time it is considered.
Therefor project timescales become extended and the costs of completing projects becomes extended because the costs must be financed for a longer period. There is also a higher possibility of abortive costs, for example having to re-design submissions to suit the Planning Officer´s requirements.
So this is a deterrent to making planning applications in the first place.
Ritchie and Ian´s answer to this dilemma is quite simple. They propose to carry out developments only using Permitted Development Rights rather than undertake new planning applications. What this means is that you are only carrying out projects that you know have 100% chance of success, since there exists a Permitted Development Right to carry out that particular form of development.
Permitted Development Rights
In very brief order, you are allowed to develop existing commercial use buildings fitting certain criteria into residential use using Permitted Development classes G and MA, which are predictable provided that your proposed development site meets the 5 criteria for satisfying the right to develop.
Permitted Development is a right granted by Central UK Government across the whole country in order to try to alleviate the logjam in the Planning System, that I described above.
The Local Authorities can counter the Central Government directive for Permitted Development and they have done in certain areas by issuing what is called an Article 4 Directive, which removes the Permitted Development Right.
Well as you can imagine with anything originating in the UK, the Legislation is not going to be simple and straightforward.
There is a tension between Central Government who on the whole want to speed up property development, and the Local Authorities who wish to retain control of property development and do not like Permitted Development Rights.
In the fast-paced world of real estate, innovation and adaptability are key to success. Ritchie Clapson, a visionary entrepreneur, has emerged as a prominent figure in the industry, spearheading change and reshaping the way properties are bought and sold. With his groundbreaking company, Property CEO, Clapson has revolutionized the real estate landscape, providing unique solutions and transforming the customer experience. Let's delve into the story of Ritchie Clapson and discover how Property CEO has become a game-changer in the industry.
Small Scale Property Development
Ritchie and Ian encourage developer mentees to operate in the range of 5 - 20 residential units, which makes absolute sense because below 5 units, you get a lot of competition from self builders, and local builders who operate on a different model where they will work on the project themselves in order to reduce the costs.
Above 20 units and there will be competition from regional house builders.
So in that sweet spot in the market place, adopting a low risk strategy using Permitted Development Rights it is possible to make a good living and accumulate wealth.
Background and Current Aspirations
Ritchie Clapson's journey in the real estate sector began as a qualified Structural Engineer, and his father was also a Structural Engineer as well, also highly regarded for his capabilities. Already retired from his high level Structural Engineering career, Ritchie Clapson has embarked on a mission to educate prospective property developers and encourage them to adopt a low risk model in order to achieve success in small scale property development.
So Property CEO is Ritchie´s retirement gig, and he wants to give back his knowledge to help as many aspiring property developers as possible before riding off into the sunset.
Property CEO Mission
Ritchie Clapson and Ian Childs founded Property CEO with the vision of redefining the way that people approach developing property. The company aims to educate and arm prospective developers with a highly qualified team of professionals around them so that they are assured of success in their endeavours. Property CEO's mission is to simplify the complex and often arduous process of property development while ensuring transparency and security for all parties involved, especially property investors and funders, who have greater certainty about the security of their funds - that they will get their money back, with the agreed return on investment.
The Property CEO 8 Pillars of Success
One of the key factors that set Property CEO apart from its competitors is its utilization of tried and tested methods. The property development industry is a very conservative one. You would expect this because backing up the whole industry is a finance backbone of funders who finance property development and one thing they value above all else is SAFETY AND CERTAINTY. Funders want to see that risks are being effectively managed and that money they entrust to your project under your custody is going to be returned in the agreed timescale and with the planned return on investment.
The 8 pillars of success are as follows:
Credibility and Brand
Your Business Plan And Company Structure
Your Leveraged Professional Team For Development
Your 100% Finance Option For Development
Your Deal Sourcing Advantage For Development
Your Deal Analysis Tools For Development
Your Technical And Planning Know-How On Development
Your Essential Design Procurement, Cost Communication Control
Wow! What does all that mean, you may ask?
I wont attempt to explain all these steps and processes in detail, as if you are interested in Property CEO you can check them out on their website.
Customer-Centric Approach Of Property CEO
One of the cornerstones of Property CEO's success lies in its unwavering commitment to providing exceptional customer service, which is reflected in a high number of customer testimonials and success stories.
Ritchie Clapson and Ian Childs recognized the need to address the pain points often experienced by aspiring property developers, such as lack of credibility, lack of systems, lack of knowledge, lack of tools, and importantly an inability to adequately assess the risks involved in any property development.
I have come across this myself on numerous occasions. There is a tendency towards optimistic "wishful thinking" regarding property development, especially over optimism about the Gross Development Value, big mistake number 1. Also lack of knowledge and a realistic appreciation of the complexity and the expense involved in property development. People under estimate all of the costs, under estimate all of the risks and it is no wonder that many projects run over time and over budget, and that some projects fail as a result. There is a recognised phenomenon called "Optimism Bias" which occurs when people risk assess projects and they tend towards assuming better rather than realistic outcomes.
To tackle these sort of issues, Property CEO assigns a dedicated team of professionals to guide clients throughout the entire transaction process, ensuring seamless communication, timely updates, and expert advice.
Furthermore, Property CEO has implemented a fair pricing structure, charging clients a flat fee with no upsells. Clapson's emphasis on transparency and fairness has earned Property CEO a loyal customer base and a stellar reputation in the industry, which can only grow. They partner with the PIN network of Simon Zutshi, which is a tremendous association and recommendation
Impact and Future Outlook
Ritchie Clapson's visionary leadership and Property CEO's innovative solutions have had and will have profound impact on the property development industry. By challenging the status quo, Clapson has disrupted traditional practices and introduced a more efficient and customer-centric and systemised approach to property development.
Looking ahead, Clapson and Property CEO may plan to expand their services globally, leveraging their technology and systemised approach to provide accessible and propertydevelopments worldwide. By constantly evolving and adapting to market demands, Clapson aims to solidify Property CEO's position as a leader in the real estate development. Property CEO brand themselves as a PIN PArtnership company and that is certainly were the PIN organisation is headed, worldwide.
These are exciting times for Ritchie Clapson and Ian Childs and their Property CEO brand, so they are worth watching out for. I certainly endorse them.
Enjoy your weekend, and have an awesome week ahead!
Cheers
Alan
