Forums / Property Investing / Creative Investing / Looking for JV partner to execute splitter block deals.

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  • Profile photo of kgv2015kgv2015
    Participant
    @kgv2015
    Join Date: 2015
    Post Count: 5

    Hi my name is karan and am looking for JV partner in executing splitter block strategy in property investment.

    Strategy:
    Buy big block of land = $500k
    Get DA for subdivision for 2 blocks = $70k
    Contigency, holding costs = $30k
    Sell each block = $330k each (after selling costs)
    Total investment = $600k
    Total return = $660k
    JV profit 50-50 share = atleast $30k each (or best case $50k each)
    Investment period = 3-6 months.

    Please contact me if you are interested. I am also open to other strategies subject to mutual agreement.

    Regards,
    [email protected]
    0430475700

    • This topic was modified 2 years, 7 months ago by Profile photo of kgv2015 kgv2015.

    kgv2015
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    Looking for JV Development Partner

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    I reckon 10% is a low profit margin…

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of kgv2015kgv2015
    Participant
    @kgv2015
    Join Date: 2015
    Post Count: 5

    I couldn’t agree more, rule of thumb on developing is 20% atleast. I did a mistake, revised estimates below. I have more detailed feasibility study for interested party.

    Buy big block of land = $500k
    Get DA for subdivision for 2 blocks = $70k
    Contigency, holding costs = $30k
    Sell each block = $350k each (after selling costs)
    Total investment = $600k
    Total return = $700k
    JV profit 50-50 share = atleast $50k each (or best case $70k each)
    Investment period = 3-6 months.

    kgv2015
    Email Me | Phone Me

    Looking for JV Development Partner

    Profile photo of littlelotlittlelot
    Participant
    @littlelot
    Join Date: 2003
    Post Count: 9

    What area state would you be looking in

    Profile photo of kgv2015kgv2015
    Participant
    @kgv2015
    Join Date: 2015
    Post Count: 5

    Hi little lot,

    I am looking in Brisbane region, actually have couple sites in sight at the moment.

    I have enough equity in my PPR but bank wouldn’t give me line of credit to withdraw that because am on single income, wife is off work due to new born.

    Therefore I can’t do JV right now, but if someone wants to finance the deal am happy to do all project management for agreed fixed remuneration.

    If you are interested I can give more details of the entire deal, thanks.

    kgv2015
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    Looking for JV Development Partner

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    Hi Karan,

    If you don’t have the ability to borrow from the bank you are basically asking someone to hire you just for labor only?

    How many property development deals have you completed?

    How many block split deals have you completed?

    Why would someone hire you to do this labor with no experience??

    Hope you understand my questions are trying to be helpful and not hurtful.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    KGV, why not do it as a Nodoc Non coded loan (No income evidence required) using your PPOR and the project as security.

    Rate will be higher but you will retain 100% of the profit rather than sharing it with another partner.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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