Anyone has got any experience or heard any architects acting as developer so literally. Own client & architect at the same time.
How does it work?
Thanks for the adviceRPIParticipant@rpiJoin Date: 2012Post Count: 308
Yep. I have a couple of architects who work that way.
I also always bill my own entity when I develop, I do not believe in giving away time. If your time/ professional fees are included it ensures your figures still add up.
Thanks. So are you saying you charge yourself a professional fee for the services?
I am an architect who is interested to buy a property & redevelop it to more units to sell off. I am just not sure of the process & whether it will get complicated down the line with finance etc.
Any advice or experience would be much appreciated.
Thanks.GiovanniParticipant@giovanniJoin Date: 2004Post Count: 27
I know of a builder who decided to build a number of townhouses for his own company. Got approved for finance, and got started… however before first draft, they realized he was basically owner builder and therefore did not qualify for a loan.
Send him in a chaos and had to reapply under a commercial loan, at a greater cost.
Very expensive mistake!
GRPIParticipant@rpiJoin Date: 2012Post Count: 308
I am not sure on the financing aspect but from a legal perspective separate your professional services and project managent from the ownership. On a development I do One entity owns property Another project manages development Project management entity contracts others to do development Builder Architect Town planning It just happens that I control one of those entities or maybe only beneficiary etc
This structuring stuff is one of my passions. <edit>fragarcolinMember@fragarcolinJoin Date: 2013Post Count: 16
Yes, I knew few people of this category. Actually I have a friend who is a good architect as well as developer. I said good because I saw his work and it was really awesome.There are very few people who are expert in both of these.BallerinaParticipant@ballerinaJoin Date: 2011Post Count: 63
I am an architect and a developer. The way how we see it (my husband and me): for us the main thing is to get TDC (total development) costs down as much as possible. So, for me it makes sense to do design and related architectural work free of charge, for myself and my family. That way we need to come up with less $$ to make the construction happening. I get my fee out at the end (not literally), from increased profit margin. it all gets taxed at some point, doesn't matter when. In most cases we keep our developed stock, so my fee is built in, and never taxed. Will be in the future, trough CGT…
Developers do not get paid for due diligence … and it is time consuming process. It is all part of being a developer.
Financiers do not care if I have paid myself. It is ATo who may, because my fee would become part of capital base.
At least, that is how I see it.
Thanks for your experience.
I really want to start but don't know where to ? Did you acquire a land / property under private name or company & develop under that company? Then do you run your own architectural firm?
Thanks for your help. I would love to ask more in depth questions if you don't mind emailing me on [email protected]
Thanks all & please keep the comments coming.
Where is your friend located ? & what kind of development does he do?
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