In this video I walk you through the process of conducting a full financial appraisal to workout the value of land and ultimately calculate our offer! Want to learn development? DM me 'Development' on Instagram - / roseycassidy
Hi Rosey, Great content and video. I would be interested in knowing how you would deal and structure a JV arrangement with the land owners getting an uplift via a profit share at the end, or other deals arrangements like that
Hi Rosey, really great run through of the appraisal. I’m starting as an ADM soon and would love to have a closer look at this appraisal template. Is there a link to download it by any chance?
Do you know what time it is? Myself, I have been enjoying live music dance parties in Ibiza from the comfort of my home. I don't normally do this, there might be some contracts to sight later, taking a look at the cash flow on one of these beachfront properties. I mean, we can always come back to that. Let's share some drinks first - I know a great place where they serve ice-cold tequilas with a little slice of lemon and salt on the side. Let me know what you think!
23-27% pre finance so once you factor in set up cost, exit cost, finance legal / valuation cost and then 0.65% + a month interest over 18 months as well as private finance raised; do you then ultimately work to 8-13% net return on a site ?
Hey, valuation legal fees are worked into pre finance costs Britney are fixed regardless of the lender we go with. So for us the net amount is purely less cost of finance. From debt it nets off 5-7% mainly because the interest is on drawn amount not loan facility. Equity investors are on a profit share and will depend on the deal but normally 10-25% of net profit after corp will go to them the rest to us☺️
Why dont you consider 20% of your GDV as your profit. Then deduct that and your costs to get the residual land value rather than trailing and erroring til you get there.
