Property Development Management and financiers

I want to do subdivisions with multiple dwelling Property Dev Mng (PDM) for investors who wants a part of the action. After doing a PDM course I found what was missing is the upfront market research AFTER you have determined in which suburb to do development. The purpose of this market research is to determine what was built during the past 2 years, what sells well and what not, what ideas to “copy”, who were the previous role players (architects, civil engineers, town planner, builders, real estate agents) and to meet with them to get tips, do’s & don’ts, lessons learned and other information.
This research forms the basis of your new (and subsequent) development to ensure the most optimum time to market and maximization of your profits. It also provides the initial inputs for the feasibility study and the Development Finance Application (DFA).

When discussing this with prospective investors all agreed that they don’t do it, that it is a great idea and probably of great value but are not prepared to pay for it. Therefore those I spoke to rather buy off the plan.

a. What services can I add to this ‘upfront’ research that will make it more attractive for investors/financiers? How can I sell such a research service?
b. Will you pay for such service? How much are you prepared to pay for it?

Thanks in advance for your comments!
Regards
 
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This is where an investor becomes involved earlier in the value chain i.e mezzanine loan that earns a >>% (10%-20%) interrest and the option to buy off the plan.
 
sounds dodge...

Anymore details. This aint cents your asking for from investors so might i ask for a more definitive guide as to what your offering?
 
Perhaps I'm asking for dirrent things so I will split my original post.

I'm not offering anything yet but asking for comments:
What I believe may be of value is "the upfront market research AFTER you have determined in which suburb to do development. The purpose of this market research is to determine what was built during the past 2 years, what sells well and what not, what ideas to “copy”, who were the previous role players (architects, civil engineers, town planner, builders, real estate agents) and to meet with them to get tips, do’s & don’ts, lessons learned and other information."

Why? Using RPDATA, Residex etc provides you with a lot of information to select the best area for capital growth and rental yield etc. Even getting a piece of dirt may be less challenging.
What I believe is missing:
a. How to determine what will appeal to investers/owners based on emotional market information- (a buying decision is an emotional decision backed by logic).
b. Where / how to get this 'emotional' info from?
Any ideas? If this statement is true then how do I package and offer this plus the other questions above?

Regards
 
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Property Development Management and financiers (next part)

No money down arrangements like wraps, Options, JV etc seems only possible if me and the property owner (family member) or financier has a trusting relationship.

But I also believe that many has done this contractual arrangements before and I need your advice on how to start out.

a. How can I recuperate the costs involved in all the upfront market research and initial financial analysis in order to find and select a piece of dirt, get control over it and prepare a Proposal for potential mezzanine financiers especially if you have to repeat this 2-3 time before someone signs up. Catch-22
b. Where and how will I find investors that also want to be mezzanine financiers [In real estate finance, mezzanine loans are often used by developers to secure supplementary financing for development projects (typically in cases where the primary mortgage or construction loan equity requirements are larger than 10%). Most commercial banks requires 20%-40%]
c. How do I build an initial track record and reputation in order to develop a trust relationship with potential financiers / investors?
d. How much weight will a proposal and sample of a feasibility study carry when approaching mezzanine financiers for the 1st time? Doubt if it can be done without it?
e. Should I approach mezzanine financiers in the same way as commercial banks i.e only when the final DFA is available? Then question (a) applies

Thanks in advance for any comments?
Regards
 
No money down arrangements like wraps, Options, JV etc seems only possible if me and the property owner (family member) or financier has a trusting relationship.

But I also believe that many has done this contractual arrangements before and I need your advice on how to start out.

a. How can I recuperate the costs involved in all the upfront market research and initial financial analysis in order to find and select a piece of dirt, get control over it and prepare a Proposal for potential mezzanine financiers especially if you have to repeat this 2-3 time before someone signs up. Catch-22
b. Where and how will I find investors that also want to be mezzanine financiers [In real estate finance, mezzanine loans are often used by developers to secure supplementary financing for development projects (typically in cases where the primary mortgage or construction loan equity requirements are larger than 10%). Most commercial banks requires 20%-40%]
c. How do I build an initial track record and reputation in order to develop a trust relationship with potential financiers / investors?
d. How much weight will a proposal and sample of a feasibility study carry when approaching mezzanine financiers for the 1st time? Doubt if it can be done without it?
e. Should I approach mezzanine financiers in the same way as commercial banks i.e only when the final DFA is available? Then question (a) applies

Thanks in advance for any comments?
Regards

Mate its sounds like what you want to do are .....Options and Vendor finance. Buyers agent more than anything else.

Yip. What you described to me is that you want to be a buyers agent of sorts.

You want to provide "these services" in exchange for a fee... I believe ou may want to scour the forum instead of tryining to ask so many questions in one thread. It seems you want all the answers to you problems answered in one post which im pretty sure you wont get.

I recommend going to Momentum Wealth in East Perth and "Research" what they do. Sounds alot like what your trying to achieve.
 
This is where an investor becomes involved earlier in the value chain i.e mezzanine loan that earns a >>% (10%-20%) interrest and the option to buy off the plan.

So what your saying is PB Equity puts up the cash for the project, taking on it's financial risk, for a 10-20% interest return on the initial capital?
"Option to buy"?
Why would I want an option to buy something I've already pretty much paid for?
And all this for some research on your part?
Does'nt seem like a good deal from this side.

Why would'nt I just pay someone for the research, or get a trusted REA (yea, I got more jokes too!) to do the research and produce a report as part of the deal of him selling them when completed?
And use a development company to build them. Then i don't need an "option to buy" what I already paid for. The return should be much more, and the risk is not that much more.
 
I recommend going to Momentum Wealth in East Perth and "Research" what they do. Sounds alot like what your trying to achieve.

Thanks for the info - Seems there is a big difference between a Real Estate Buyer Agent and a Property Development Buyer Agent. Project Management is probably where I will need to focus.
 
Momentum Wealth does project managment, I had their info pack and it said the following:
- Site Acquisition
- Feasibility Study
- Development Financing
- Building Approvals
- Project Managment
- Leasing
 
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