Hey guys,
I need some help structuring a business plan to buy some property I’ll start from the beginning. There is three of us in a company together (family members) we have assets for a deposit and equity in the house’s that we own. We have found a property in a mining area were we are all currently working on a painting contract to paint 100 homes sub contracted by the mine to us. We get 800 dollars per house for accomadation that we can use to pay for the loan we may need. we finish three house a week to give you an idea how much accomadation money we have to spend. Anyways there is a great opertunity for us to build rental accomadation in this area plus we need somewhere to live so we arent paying the money we get for accomadation back to the mine. So we have found a 2 storey house on a 1300sq metre block. this will alow us to build two more propertys the same on this block. the rental you get in this area is 330-350 per week for a house or two bedroom unit and they take very long lease’s upto 2-3yrs a goverment body in the area needs accomadation. we plan on building the two extra house’s on this block and making the up and downstairs seprate so we can rent them seprately. what I need to know is what is the best way to structure the loan we need the purchase price will be 200,000 for the house and block and each house to build on there is about 1400sqm I estimate the whole project costing 400,000-500,000 I also want to be able to do it in stage’s one house at a time to see how demand goes. I have done all the necesary research in the area for what I can build on the land and it is a good price for the property etc. I just need info on what ppl to talk on structuring the loan etc. thank you any help would be appreciated
I’d recommend seeing a broker who can shop around for you as you have a fairly unique income/structure set up which will require some tweaking to get through and with a good deposit it may actually be worth going low doc – about 40-50% of them will do construction but as picja says location may be a concern.