Hi everyone
I am a relatively experienced property developer and am currently in the middle of a development that is sucking up all my money. I have now found another development site that I want to buy and I am trying to think of as many options re purchasing as I can. I have approached the vendor directly and he is very receptive to ideas on how to structure a purchase. These are the options I have come up with:
1. subject to DA
2. Option, with a non-refundable deposit
3. Vendor finance
4. Partnership with the vendor.Can anyone think of any other ideas that would give me time to complete the current development (6 – 12 months before all blocks are sold) before I had to financially commit to this new development?
Cheers
K
Option with another option to extend (would mean putting down a little more $ for the extended period but there is no huge outlay early on) or alternatively an option and failing exercise of option the 1st and last rights to negotiate with the vendor prior to sale.
Best is No 2: Offer a property option deal. You agree to buy for X amount within X time – say 18 or 24 mths. You pay a non refundable fee – say $2000 – now and have 18 or 24 mths to complete your DA and onsell to another developer or to acquire the funds to purchase and develop yourself. This way you have control of the property without partners.
http://www.rentalagreementsdiy.com.au/option_to_purchase_real_estate_agreement.phpIan
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Property Investors.with right of eXtension subject to DA should have you covered…sapphire has a valid point; but would the vendor go to contract knowing the property may not be sold in 18 months as stipulated in the option agreement!?
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