DAs Developments JV's and property sourcing

Hiya

I am currently working part time for a real estate agent doing handiman work, some gardening and landscaping which brings me into contact with many property managers, owners, renters and investors. I have even had some offers to buy good deals but had to turn them down.

I hove bought and sold 2 properties in the last 5 years and put all our eggs in one basket and bought a 1700 SQM block in Swansea near Lake Macquarie. Our DA on this site is just about over the line with Lake Macquarie Council. We have 4 really nice townhouses designed with build costs being about $250,000 each. I have been to see a couple of real estate agents who are keen for me to bring the development to them once it is approved.

I do not like paying agents commission unless they really earn it. It seems many of them just advertise the properties and wait for clients to come to them, so I may as well advertise it myself which I understand I can on realestate.com.au

The reason for joining this forum is to find a way forward with our development and then to continue on to financial freedom using property as a vehicle which is working well for me ATM.

My financial interests include managing of a portfolio, future creative financing, buying, renovating, and selling.

My leisure interests include good conversations, enjoying times with family and friends, travel, surfing and adventures, food, films, books meeting new people and my spiritual life.

My first question is, what is the best way of selling my property with a DA if I do not find a JV?

Thanks for reading my bio, I look forward to communicating with members here

 

Welcome! I'm surprised you haven't had more people saying hi, this is a great introduction.

 

Sounds like an awesome development, have you talked to a broker about your borrowing capacity?

 

Firstly - welcome to the forum.
Seems like you have a reasonable idea of a plan in mind. So thats a good start!

I personally wouldnt reccomend a JV for a first project. Its hard to know what you dont know. And a JV could just complicate things further.
Speak to a broker to see if there is any way to finance the deal. If not you have a few options.

1) sell the block with DA and hopefully this gives you better sale price
2) subdivide the property, and sell the vacant blocks individaully. This may give you the option to (say) sell 2 and then build on the other two.
3) approach a builder and strike a deal to sell a couple of the builds 'off-the-plan'. Again, potentially giving you a chance to complete one or two yourself.

All depends on what you can finance, and what your end goal is.

Blacky

 

Best way to sell DA is to first work out whether it stacks up as a DA, buyers will want minimum of 20% profit.
Have you worked out the numbers on this?