About B1johnson
Seems to me that the real goal would be not to have 'investors', but to have BUYERS (persons or companies that have the structure built for their actual usage).
I have been in a financial bible study recently where a real estate developer was giving the session. He said financially, he realized that by selling off his properties that were borrowed upon to build them, he could pay off 1 or 2 properties and rent them out and have the SAME income.
Borrowing is a pledge, making the borrower a servant to the lender... and with economies going crazy at the moment, it is basically gambling on the interest rates and potential returns.
If you have the money to build a project, then your return is re-couped in 2-10 years depending on the tenant.
But if you borrow, you need near full occupancy just to break even and come out with a 10-20% profit margin.
So, the core principle is that borrowing 100% of the financial need for a property many not ever pay off, especially if interest rates rise.
Find investors that take all the risk for themselves with money they have already earned... Don't speculate on potential... find tenants and build to suit... whether they rent or buy that property... commercial or residential...
Lastly, don't form partnerships... in the end, they HAVE to break up at some point... they cannot last... If you cannot do a project without partnerships, have an exit strategy in the contract.
Featured articles and news
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.
CIOB photographic competition final images revealed
Art of Building produces stunning images for another year.
HSE prosecutes company for putting workers at risk
Roofing company fined and its director sentenced.
Strategic restructure to transform industry competence
EBSSA becomes part of a new industry competence structure.
Major overhaul of planning committees proposed by government
Planning decisions set to be fast-tracked to tackle the housing crisis.
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.