I have an idea of developing a block of land 1 and half acres, which could be subdivided (I was thinking 6+ lots) and building houses on each lot and renting them out. How can I sell this idea to the banks or mortgage lender (and my husband). With number approx number I have so far (council fees, mortgage repayments, builders fees and have included an amount for each house for incidentals) I could probably get about $600 +ve cashflow per month if all houses a rented.
Also, has anyone done this sort of thing through a trust or personal company?
Depending on what sort of deposit you have you would probably need some sort of council approvals, plans etc drawn up.
You cuold buy the land first and then apply for further finance for the subdivision etc.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Nahna,
1. Is this site zoned for your idea.
2. Have you done the numbers with a builder.
3. Have you contacted an architect.
4. Do you have any prior experience.
5. Can you cash flow a construction loan.
6. Are there any restrictions on the block.
7. The bank will need a cash flow analaysis.
8. What about a security estate complex.
9. What about a two storey walk up development.
10. What about townhouses.
11. Have u done an area over view.resiwealth
Sound graet if all your sums add up nicely go for it, if it’s sound the Banks will love you.
they love making money as much as any one.
RegardsHi,
First, I am not a professional so any advice I give you is based on that. Please make sure you get proper legal and accounting advice before moving forward.
However, as far as I have understod after reading Steve’s books, wealthduardian and a lot of similar books by Robert Kioysaki (the guy that turned Steve into positive cash flow prop) is that as far as structure goes you don’t want to own anything in your own name but you want to be able to control everything. In other words be very carefull about doing it in your own name, there are many reasons for this and one is that if you later would like to change your structure stamduty applies. I suppose one of the best things you could do is to purchase Steve’s Wealth Guardian since this takes you trhough all the different structures. Still get professional advice but you will be able to ask better and more qualified questions and thereby receive better answers.
As far as your husband goes……don’t dare to go there but maybe I dare give a suggestion. Do your homework and when you approach him be very positive and honest about possible ups and downs so he can make an informed descision based on as many facts as possible and as few emotions as possible….stay positive.
Regarding the banks I suggest that you visit http://www.richdad.com and consider purchasing “How to write a businessplan” by Blair Singer. I think this is the right title and author. Anyway; go there and have a look. Remember, the more you do know in terms of educating yourself the better are the chances of success.
Hope this may help a little and if for nothing else..I’ll be cheering for you so do your homework and go for it
Good investing
jb
Hi Nahna,
Dolf de Roos (Property advisor to Robert Kyosaki) has a website at http://www.dolfderoos.com. You’ll find a sample “Proposal for Finance” on his site, it’s well worth looking at.
Also check with your local council to see what rules apply to subdividing you block.
Regards
pauls211
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