Belize Real Estate Links 
| Belize Real Estate Links | |
| |
|
Real Estate Information |
|
|
|
Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One
There are two sides to a feasibility study and in an earlier article I discussed the cost side of the format and: Now Let's Discuss The Income Side Without the Sales Income, All You've Done Is Spend Money, And Anyone Can Do That. So that we are clear in what I am going to define for you, let me say that there are two forms of Income. We shall be dealing with Sales Income, in this article, which in our case will consist of large amounts of money being received as a developer in exchange for the property units we have created. The other form of income in a feasibility study, is Rental Income and will be addressed at another time when I write an E-book on Commercial Development. Sales Income Because of the make up of our feasibility study sheet, there will be no deductions from out Gross Sales Income, because we have allowed for those costs on the Cost Side of our feasibility study. Items such as sales commissions for sales agents and various marketing costs have already been allowed for previously. Now I have seen some formats of feasibility study, which deducts marketing costs from the Gross Sales Income to produce a Net Sales Income. It achieves nothing - "all costs are costs" and they should be put on the cost side of the feasibility study, which is what I do and have always done. When Can You Get Your Hands On The Sales Income. Getting the sales income into your account is very important, yet many people never ask the question as to what the procedure is "exactly" in their neck of the woods. Get to your Conveyance Expert and have them give you a schedule of events "with an estimate of time for each stage." This information is important in preparing your cash flow feasibility study format, as it results in reducing your interest cost. So by knowing this information at the beginning of a development investigation, you are adding a little bit of "certainty" to the early stages of your feasibility study. Let me give you an example: At the end of the construction phase the builder moves off site, there are a whole range of things that have to occur, any or all of which can delay, settlement taking place and so delay you getting the Sales Income. Some of these things are: ? Architect's inspection of the entire project. ? Architect preparing a Defects List. ? Builder calling back subcontractors to correct defects. ? Architect's final inspection. ? Architect issues Completion Certificate ? Surveyor (engineers in some countries) does final measurement of the individual residential accommodation units and compares to Unit Plan that is included in the Sales Contract. ? Preparation of the Final Unit Plan (as used by conveyance office) for settlement. ? Lodgment of the Unit Plan with the Titles Office. ? Registered Title Issued by the Titles Office. Can you see that any delay in these items will impact on the settlement date and also on your interest calculation in your feasibility study? Body Corporate / Management Plan It is hard to keep up with all the different names that are used around the world for the Legal Entity that runs the complex of units you have developed, however your legal advisor will let you know. Just as out Towns, Cities and States need Rules & Regulations for all its citizens to live in harmony, so too does a small complex of units, condos, apartment etc. What ever it is called in your part of the world, is necessary for you to engage a legal advisor to prepare one for you, which will include the preparation of a Budget to which you, as the developer, will have to pay in a certain amount of money. The reason I am giving this brief explanation on Body Corporate / Management Plans is because at Settlement you will get back some of the money you put in to get the Budget off the ground. In addition you will have paid the Local Council, Utility etc other amounts of money that cover a set period of time. Once again you will get some of this money back at Settlement. They are generally referred to as "Adjustments at Settlement" and act as a reduction on the cost side of your feasibility study. So What's Next? Remember I told you earlier about the Unit Plan that was lodged with the Titles Office, well has it issued yet? Phew - we just got it today - great! Now your conveyance expert has to let the Buyers' representative know in writing that you are ready to settle. In addition the buyers have to let their individual Finance Lenders know to have the Mortgage Documents completed on time and finally a date has to be agreed on which all these differing parties can meet and settle. Now I don't want you to be concerned about all this stuff, but I do want you to know about it, so that you can understand and manage (yourself) and others who have to do all this work for you. Blowing your Top (blood pressure up) achieves nothing. But understanding, on your part, achieves a great deal. Blowing your top, when you haven't taken the trouble to find out, makes you look foolish and unprofessional, to the professionals you have engaged to do the work for you. So Do I Get The Money Now Or Is There More Colm? Well, the Lender Gets the money actually - yep, the lender gets his Capital Debt and Interest paid off first. And when there is no debt, all the rest is yours. That is, your equity is returned to your account and that lovely Profit, you worked so hard to get. Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com/ez
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
How to Buy Your Own Home Buying Your First HomeBuying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks. Grab Quick Profits As Real Estate Prices Soar Real estate values rise and fall in cycles. Currently home prices are nearing a top in many areas. Guide To Finding The Perfect Central Illinois House Central Illinois is an area rich in cultural activities and business opportunities. The quality of life experienced by the residents of the numerous close-knit communities is second to none. 5 Secrets for Surviving a Real Estate Market Downturn History repeatedly serves to show us that the real estate market is cyclical. It has boom times and stagnant times, occasionally it suffers a crash but real estate never becomes worthless, therefore if the experts are right and we're about to suffer a slow to stagnant period in the real estate market, all is not lost!There are 5 fundamental secrets that real estate investors like to keep close to their chest and they are the secrets that enable them to survive and even profit during a bear market. Make Money As A Slumlord Be a slumlord? Okay, I got your attention, now the truth. I really don't recommend that anyone endanger their renters with unsafe housing. Russ Whitney and Real Estate Investing Gurus There is curently a huge real Estate boom in America today. Little does the world know that this boom has some to do with all of the real estate guru's out there. Rental Property Management - Ten Questions Why hire rental property management? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when there is someone taking care of the details for you. Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance In an earlier article, we presented various options for ensuring that you have positive cash flow when holding rental houses, by minimizing loan payments. One problem which we now can address is to how to eliminate the need for paying mortgage insurance. 10 Tips for Investing in Distressed or Foreclosed Properties 1. Search on the world wide web for distressed or foreclosed properties as a starting point. How to Make a Home for Sale Flyer Using Marketing Psychology Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor's number two sales tool--right after the sign--your sales flyer.Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies. Real Estate Investors - Red Alert How's the real estate marketing doing? Is the huge jump in home prices that is evident in some areas symptoms of a value bubble? Good questions, yes?Two things to keep in mind when surveying the market:1. All real estate is local, 2. New or Old House? A lot of buyers think that a new house is the way to go but it's important to have some knowledge of quality and of the builder. New paint, carpet, doors, windows and cabinets are a quick and easy sell. 3 Top Real Estate Investing Methods for Maximum Wealth Real Estate investing can be used to gain wealth in three major ways -1. Long-term Real Estate investing is most often utilized using appreciation as a planning tool. Budgeting Your Log Home - Creating a Checklist If you've read my first article, BUDGETING YOUR LOG HOME: Where do you start?, you've got a very basic overview of the process. However, there are still a number of questions I'd like to address. We Buy Houses Scams - How to Spot Them and How to Avoid Them There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, divorce and inheritance are just a few. Important Facts For Home Buyers If you are considering buying a home or have spent many years saving in preparation of buying a home, the questions and process involved in buying a home can be extremely stressful. As exciting as it is to begin looking for your new home, there are many unexpected costs and details to be considered before contacting a real estate agent. Building Your Dream Home - Part 1 For most of my adult life I had thought about someday building my Dream Home. Several years ago I finally got the chance. Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own! In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead. Finding a Great Listing Agent for Your Home: 8 Tips If you've decided to list your home, you'll be paying a real estate agent a significant amount of money to the hard work of selling your home. Therefore, you have the right to expect prompt attention, good service, and protection. How to Create Cash Flow Out of Thin Air! Want to see a trick every real estate investor will love?From the Desk of Thomas KishCrazy as it may sound..
|
| home | site map | Colorado Log Homes | Homes for Sale in Denver Metro |
| © 2006 |
