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  1. #1

    Default real estate development

    Hello,
    I am curious to know how others who are experienced in developing real estate would begin a large scale project. Strategizing a business plan is giving me a headache. Here is what I do know: I have a parcel of land that is in a strategic location. It was already approved for a 300+ condominium unit, but the developer lost his financing. The condo market is weak, but there are renderings for a hotel, and lets remember the city approved these projects,,,anyway's a hotel with 20"000sq.ft. of retail space would do nicely, in fact the retail space has already been approached by companies such as Starbucks and CVS.
    I am told it would cost about 35 million to put up a hotel. That's a lot of money. What I also have going for me is my connections, I could find ways to cut down construction costs through the people I know. Plus I know people who can run it, do hiring, staffing, etc.
    Now here is my question; what type of company, corporation, reit, or whatever do I start with to find investors? Can I start an LLC and then turn it into a reit? I would appreciate any info, just imagine it's a great piece of land and it could work, now where do I start?
    thank you.

  2. #2
    Join Date
    May 2005
    Posts
    1,070

    Default

    Hi Jordon,
    Where do I start answering your question? Such broad strokes to cover all that detail underneath. So I will answer your question(s) with two questions.
    Have you considered why the financier didnt approve finance?
    Why will it work for you and not them?

  3. #3

    Default Hello

    Thank you for your response. Let me start by saying that the previous developer could not get his financing because this market has stricter lending laws and condo's are not moving right now, to even break ground on a condominium would be crazy, unless your name is Trump. Not too mention, insurance these days is a bitch, which leaves a smaller margin for profit.
    Listen, I want to sell an idea. The idea that this Hotel I plan to put up is going to be the most conveniently located to the airport, and the nicest in the vicinity. I have great connections in every industry that would be involved in a project like this.
    Now lets say you were me, what would be your first plan of action to make this happen..?
    What do you know about reits?

    Jordan

  4. #4
    Join Date
    Sep 2009
    Posts
    90

    Default

    As a developer I would first go and fixed my finance,check my affordability and if I require (which I obviously would) any financial help I would analyze the market due to the scarcity of financial support.Then I will take all my budget in my mind and go for the planning for my hotel construction and then chalk out my expenditures.

  5. #5
    Join Date
    Jan 2011
    Posts
    12

    Default

    devidfox has a point,i totally agree with him.Ofcorse you need to fix your finances then you will decide where to start with. But i think at that time will already know about the initiative and please do some out door trips and meet people in this sector.

  6. #6

    Default

    I am with you in developing Real Estate but first you think about your finances and fix them. Investors are available in huge amount but they invest only when they like your proposal or they feel that they can get good amount of money in return.

  7. #7

    Default

    When any investor start the project first they check the finance and after he check other necessities .They check amount which is sufficient to end of project and in this way work is easily completed and return on investment is rapidly return.

  8. #8
    Join Date
    Sep 2008
    Posts
    7,581

    Default

    what do you mean by condo?

    are you in nz?
    have you defeated them?
    your demons

  9. #9

    Default

    I have to agree with Epsilon. You will get investors, like interpreters and banks but all of them will invest if they see lots of money back from that project. In addition to this, they evaluate the ROI based on our building plans so this is a bit of a circle. If you want a solid investor you have to have good plan and good guaranties that the plan will provide ROI and a project complete on time and on quality.

    Another interesting business banks usually invest in is mortgages and they make lot's of easy money selling repossessed homes. Again they will approve mortgage on a house that promises to be sold easily if the owner can not pay his mortgage.

  10. #10
    Join Date
    Nov 2008
    Location
    Karratha WA
    Posts
    1,444

    Default

    Quote Originally Posted by eri View Post
    what do you mean by condo?

    are you in nz?
    And reit is real estate investment trust in US. So I guess we are dealing with the States.


 

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