Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
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: Real Estate - Google News REAL ESTATE: Moreno Valley broker-owner expands as market contracts - Press-Enterprise
Real estate developer says he plans to make cash bid for Philadelphia's 2 ... - Washington Post
UAE Banks Dip Back Into Real Estate - Wall Street Journal
Real estate market rebounding - Park Record
Alexandria Real Estate Q4 FFO Rises - Quick Facts - NASDAQ
Real Estate Weekly- What is a 203K Rehab Mortgage Loan? - Ukiah Daily Journal
REAL ESTATE: Refinancing expanding for Fannie/Freddie borrowers - Press-Enterprise
Real Estate Broker Sentenced for Tax Evasion - KSEE
Collins Joins Equity Office Properties in Boston as Regional Director - Citybizlist Real Estate
|
 |
|
|
RELATED ARTICLES
Purchase Online Tenancy Agreements Buy an on-line Tenancy Agreement now. As a landlord and also as a tenant it is important that there is a comprehensive tenancy agreement in place to protect both parties. Ten Big Mistakes That Will Lose That Property Sale If you are serious about selling your home, you probably go to a huge amount of effort when you show potential buyers around your property. You clean the bathroom until it sparkles; vacuum the carpet; brew coffee or bake bread; maybe you even banish the kids to their grandparents, but did you make one of these Ten Big Mistakes that can lose the sale - but are so easy to avoid. You Dont Need Health Insurance! Seems almost every situation in our lives is centered on communication. Good or bad, the way we express our thoughts, wants, and needs to each other determines how we live, love, and learn together. 10 Easy but Essential Steps for Home Selling Success They say that the whole process of selling up, buying new and moving on is one of the most stressful series of events any of us goes through in a lifetime: and yet with careful planning, attention to detail and a clear focus, the whole process can be relatively stress free.While there will always be factors outside the control of any home seller, those factors that fall within their control sphere can proceed fluidly and smoothly when they take the time to plan and think one step ahead. Is a Vacation Home Right for You? Many of us dream about owning the vacation home in the Mountains, or on the Lake or Ocean. A place where one can retreat periodically from the hustle-bustle of everyday life. Finding Structural Problems During Escrow - Small Rural Home Example In rural home purchases, the transaction is often subject to a satisfactory home inspection being done. Any imperfections are usually corrected during escrow. Escalation Clauses - A Home Buyers Secret Weapon Today we discuss escalation clauses because much of the country is experiencing an extreme "sellers' market." By that, I mean there are more buyers than there are sellers, and that results in sellers' getting more than one offer to buy their property. Making a First Impression When Selling Your Home So you've decided to take advantage of the booming real estate market and put your house up for sale. As you know, buying a house is the most important purchase a consumer can make. What We Do To Sell Your Property! Once you have contracted us to sell your property we go to work for you to bring you the most money and best price for your property as quickly as possible. Some properties are faster selling than others based on the location, condition, size, price, of course, and type of the property. Be A Realtor With Curb Appeal Are you a realtor with curb appeal or are you more of a fixer-upper needful of updating?How you present yourself to colleagues, buyers and sellers, from the very first moment, will influence your sales records as well as the confidence and satisfaction your new clients feel. Even if you're a Realtor in demand, with more listings than hours in a week, you may well find areas that you can polish. Dont Sell Your House--Ever! Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following:1. The Echo Boomers - The Next Big Consumers The Echo Boomers or Generation Y currently make up about one third of the US Population. Many of the Echo Boomers are starting to reach an age where they want and need things like, Houses, Cars, Insurance. Beat the Crowd when Investing in Real Estate We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn't produce desirable returns the more people are starting with real estate investments. A Singles Game of Real Estate This discussion leans toward answering questions asked most often by our youthful men and women in there early twenties. They often begin to ask themselves the question, "Should I consider buying a home, condo/town-home or some other type of real estate that I can call my own?" Due to the fact that housing has up to this point always been provided for or lived in on a rented basis we tend to find that our newest contributing members of society find themselves at a loss for the most beneficial and advantageous way to enter this next phase of self-sufficiency. How to Prequalify a Buyer When You Sell Your Home By Owner One questions many "for sale by owner" sellers ask is "how can I determine if a potential buyer can afford to buy my house?" In the real estate industry this is referred to as "pre-qualifying" a buyer. You might think this is a complex process but in reality it is actually quite simple and only involves a little math. Selling Houses: Flooring & Feelings Buyers think they love Italian tile and other hard floor surfaces, but they actually feel happier when they're walking on softer surfaces such as padded carpeting and padded laminate. Even so, you'll want to give some serious thought to the floors in your home if you want to sell quickly, and for the highest profit. Late Mortgage Payments Sabotage PMI Cancellation There's something you should know about PMI!Private mortgage insurance is commonly referred to as PMI. If a buyer makes a down payment of less than 20% of a home's value the lender will insist that a premium for PMI be added to every monthly payment. Home Sellers Warning for Young Families If you're thinking about selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math. Home Warranties: Are They Too Good To Be True? What is a 'Home Warranty?'A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. Kings Bay, Saint Marys and Kingsland Georgia Real Estate - Mortgage Lenders When looking for a home, it is important to first get pre-qualified with a mortgage company before you search for a home. This is the first step in making buying a home a no-nonsense experience.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2011 |
|
