Forum Replies Created
- Qlds007 wrote:Financing a deal like is possible it just depends on how much deposit or equity you have in existing properties to offer as security.
Realistically you will need at least 20% of the land cost and construction costs to make the deal palatable to any lender.
Well, we don't have that much in equity so, back to joint venture question….
jamiedellam wrote:Getting finace should be the least of your troubles. If you were serious about property you would have the finance. Speak to several brokers, banks and smaller lenders. Preferrably a broker. How much is the deal worth? Is a bribe or something like that in order to sweaten the deal for he broker?well, we are still pretty much newbies, so how could we get finance for something like this:
– land (~3000 sq m) in inner XXX suburbs is being sold for $1-3M
– at the moment, townhouses in there are selling for $400K – $800K, depending on specific property
– so basically, what we want is to buy a land, subdivide, build and sell (maybe keep one for ourselves)
Now, let's say every townhouse would cost $250K to build; we think that 7 or more need to be squeezed in if we want to make a profit out of it.
Of course, once they are sold we are going to pay all the finances off; but it could take a year until the houses will be build;
And obviously, the interest repayments alone are way bigger than our income, so we don't have enough money to pay the interest until then.
That's why we are thinking about joint ventures; we want to split the interest/building expenses with someone.
Now, if there is any other way to pay expenses during this year? Am I missing something in all that?
Anyhow, thanks for the brokers idea, we will talk to a couple of them when the working week starswell, the warehouse has a tenant right now, but how would I start construction when they are still inside?
