Hello All,
Just wondering if anyone knows how to find people that are willing to invest in a small development project? I have a property that I need help with to start building on with the aim of getting 3 townhouses on the block. I need a person to help fund a little start up capital for me to get the ball rolling with architect plans, etc. I am all out of money now as I have this and another one that are negative geared and draining all my money and am at 95% LVR and family are out of the question. Does anyone have any advice? Any ideas would be greatly appreciated.
Thanks. [blush2]
Originally posted by foxyac:I am all out of money now as I have this and another one that are negative geared and draining all my money and am at 95% LVR
You should perhaps rethink your sales pitch… That there doesn’t really inspire confidence in a potential JV partner. I’ll pass.
Good luck,
F.[cowboy2]hi foxyac
I won’t pass.
you can post here or email me which ever you like you will need to give the following information and from that I can tell you if the project has legs or not and if it does then some others here may wish to pm you.
the information will be for information only as we don’t want to wander down the syndication lane put I would put it more as grossrealisation can you check these figures for me and by all means i will check and tell you yes or no if then i wish to get involve I will tell you here and then others ca check the details and if they wish also they can to.
as you are aware you arn’t allowed to advertise syndication and thats not what this question is so for that reason I think the topic may be wrong but leave it as it is and post
what it is
rough area and state
build cost
build time frame
builder if any
projected profit
sales for the area
hurt money for the lend.
hope this helpshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Hi Grossrealisation,
Thanks for your comments. My frst post wasn’t really to sell the idea otherwise I would have worded it better. It was more to find out details as to how to proceed looking for an investor and what things I would need to know. (But I guess I should have worded it better anyway.) Sorry for that! Sometimes am too honest for my own good!!
How much does an investor expect to get in return for their investment especially if the deal takes nearly 1.5 -2 years to complete? (Council takes about 8 months then 8-12 months approx to build.) Does it go by a % of how much they invested or a rate of % like the bank does. Say if they invested $50k then 15-20% interest? I have never considered this before so need to know some information about it please to see if it would be worthwhile for myself and for the investor. You can also PM me [email protected] if you like.Thanks heaps. [biggrin]
Hi foxyac,
My take on what the investor / Joint Venture partner / etc would want out of the deal depends on the deal and the investor. I think most look at the following factors (not necessarily in this order):
1. how much it costs to get in
2. how much they profit (either dollar amount or relative to their cost to get in – also known as COCR or Cash On Cash Return)
3. how much risk and how is it mitigated / managed
4. how long will it takeAs for whether it’s a good deal for you and the investor, ask yourself what you would want if you were on the other side and providing the money. What would you be willing to do / give and what would you want to get back? I’ve found that by asking those questions, it helps me to see if the deal really is worth doing – even if I’m doing it on my own.
By the way, if you’re looking for a way to make your negative geared properties give you positive cashflow, drop me a PM and I may be able to help.
Regards,
Craig.
_______________________________________
Ask me about Joint Ventures earning 15+% COCR.Thanks to everyone who have eplied and given me some valuable information. I will work out some numbers and take it from there. I have actually spoken to my accountant and he seems really interested too so I might speak to him a little further first (seeing as he is here and has the funds readily available). I really am just wanting some start up capital so might not be everyone’s cup of tea.
Thanks again to everyone. I really appreciate the help and sincerity. [biggrin]
Hi Foxy!!
How much do you need to move forward
What is the security ie; 1st mortgage
Can you give personal gurantees
D
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