Property Development

[Scooter]

Hi

I'm wanting to start my first property development and was wanting to know what the first step i should take? I have the financial backing so i just wanted to find out what is required to go to the banks with, feasibility statement? If so is there any company out there that will create the feasibily statement plus liaise with the banks in regards to all finances?

Thanks

Scooter

 

[craigb]

have you found the land/project,if so have you created a desighn or plan ?
This will have to be valued by your financial, institution, their valuers will give you a general costings to complete the project, then seperatly take it to council, and other builders, for their viewing, dont forget to calculate the holding cost while the project sits in peoples desks eg council months, etc...
But start with a bank val on the drawings, this will help you determin what your naxt step is.

 

[Scooter]

Hi Craig

Thanks for the reply.

I'm yet to find the land/project yet and was wondering what the first step is. Are you saying that finding the land is the first step? what if you find the land and then go to a company to complete the feasibility statement and then they tell you that it is not feasibile? can this happen? Do you know of a company that can complete the feasibilty statement?

Cheers

Scooter

 

[craigb]

The feasability will vary on what is going on in certain areas hence the value of the land and project,and the availability ie rent, sales, and getting a financial institution to see it your way, i suppose. it is always some risk involved and usually a difficult ride, go and see what your bank/finance people want you to do first, in my case i usually id some type of property and have some sort of idea and then verbally put it to the people with some financial figures and see what the next step is they are willing to help you with.

 

[Adrian & Amber]

Hi Scooter

We agree with craigb that you should find the development site before considering feasibilities.

We research areas to invest in that suit our criteria first. Once we've found an area we're happy with, we obtain the local authority planning regulations because we need to determine what they will allow on the site. When we've found a site we think has great development potential we do some simple 'back of envelope' BOE calculations.

When we’re satisfied we’re able to develop the site and we’re happy with our initial ‘back of envelope’ calculations we come up with an initial design concept by doing some rough sketch layouts.

When we have finished our concept drawings then we can fine-tune our ‘number crunching’ and worry about detailed feasibilities.

Hope this helps!