Hi all
I will leave les or geoff to place this tread as I'm not sure were to put it.
I am going to keep this thread a live for some time.
It is to explain how you take a soup,( a problem site) make it into your project and turn it into a profit.
lots of people have asked If I would explain what and how I do business well this post will give you the ins and outs of how and what I do and this will be real site and real figures and for those budding property developers you may wish to learn. Post any question you wish the site is secured and no you can't buy into it and it will become self evident as the project evolves.
You will have to follow with me and may have to read a couple of times to understand,
This is not from any book this is my system and can work anywhere.
Let’s start
First you need a soup
This one was a broth
a site with a contract on it for 8 mil in 2003(remember 2003 as it is very important when looking at site as most that aren’t built now are in trouble)
Mr A takes an option on the site and throws 1.3 mil in to the site and takes to the land and environment court and wins (or he thinks he does)
The correction happens and the banks close in the reins and know he has problems that’s when people like me get involved (we are not sharks but are looking for soups).
Mr A goes to lots of lenders to no avail 3 months later
I offer to buy the site for 8.5 mil Mr A refuses.
The owners of the site have a bust up and then one of my real estate people ask do I want to have ago again.
This time I low low ball 6.7 mil(remember this site has a valuation of 10 mil)
This is by know 8 months this site has been kicked around by everyone and a couple of dogs.
The owners won’t accept so I go to town on the owners individually until one cracks at 6.840mil now we have a deal.
So we set up and new company and trust structure.
We get the valuer from a lenders panel to value the site as a gross realisation lend of 80% across the board on a 43 mil resale value.
And the same valuer to give me as raw site value.
Now for the pen work.
First the new company buys the two sites as individual sites 6,84 mil 80% 5.472 mil and I put up 1.368 mil short term money 2 months
then combine’s the site straight away and the da is carried by the land owners (so got the da for free) and refinance at the new value that I have already got in advance 10mil valuation 80% lend 8 mil I repay the 5.472 part (it’s the same lender so they give you 2.528 mil) I repay the 1.368 leaves 1.16 mil take out the short term interest 68k and you have 1.3 mil in the kitty to start the development.
I will explain the next chapter in this project.
I Am doing it in word and pasteing to read a bit easier and this is about 8 months of work at this stage
I will leave les or geoff to place this tread as I'm not sure were to put it.
I am going to keep this thread a live for some time.
It is to explain how you take a soup,( a problem site) make it into your project and turn it into a profit.
lots of people have asked If I would explain what and how I do business well this post will give you the ins and outs of how and what I do and this will be real site and real figures and for those budding property developers you may wish to learn. Post any question you wish the site is secured and no you can't buy into it and it will become self evident as the project evolves.
You will have to follow with me and may have to read a couple of times to understand,
This is not from any book this is my system and can work anywhere.
Let’s start
First you need a soup
This one was a broth
a site with a contract on it for 8 mil in 2003(remember 2003 as it is very important when looking at site as most that aren’t built now are in trouble)
Mr A takes an option on the site and throws 1.3 mil in to the site and takes to the land and environment court and wins (or he thinks he does)
The correction happens and the banks close in the reins and know he has problems that’s when people like me get involved (we are not sharks but are looking for soups).
Mr A goes to lots of lenders to no avail 3 months later
I offer to buy the site for 8.5 mil Mr A refuses.
The owners of the site have a bust up and then one of my real estate people ask do I want to have ago again.
This time I low low ball 6.7 mil(remember this site has a valuation of 10 mil)
This is by know 8 months this site has been kicked around by everyone and a couple of dogs.
The owners won’t accept so I go to town on the owners individually until one cracks at 6.840mil now we have a deal.
So we set up and new company and trust structure.
We get the valuer from a lenders panel to value the site as a gross realisation lend of 80% across the board on a 43 mil resale value.
And the same valuer to give me as raw site value.
Now for the pen work.
First the new company buys the two sites as individual sites 6,84 mil 80% 5.472 mil and I put up 1.368 mil short term money 2 months
then combine’s the site straight away and the da is carried by the land owners (so got the da for free) and refinance at the new value that I have already got in advance 10mil valuation 80% lend 8 mil I repay the 5.472 part (it’s the same lender so they give you 2.528 mil) I repay the 1.368 leaves 1.16 mil take out the short term interest 68k and you have 1.3 mil in the kitty to start the development.
I will explain the next chapter in this project.
I Am doing it in word and pasteing to read a bit easier and this is about 8 months of work at this stage
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