Hi everyone, I’m in the process of getting my builders licence (still about a year and a half away from getting it) and I was wondering how I would go about finding people to invest/partial fund some of my projects once I get the licence. I have been a carpenter for 19 years and I have had my own framing business for 15 years. I have now started the 2 years experience as a construction supervisor that fair trading need me to do to be eligible for the licence. I have successfully completed Cert i-iii in carpentry and Cert iv in building and construction. Who would I be best off speaking to about writing up an agreement for a potential investor so it is fair for both myself and the investor. Has anyone had experience with this before? How did it work out? Good or bad experiences are welcome. Regards Brian
Youd need successful projects to show investors. Maybe do a small reno, document everything so that investors can see it? what do you expect the investor contribute? For how long? Penalties? What entity owns the property? Whats your stake in it? Etc.
Curious to know why would you need investors for that? Wouldn't you just be the builder for those house and land packages? and the 'investor' is just the client that's buying the property and funding the build? So technically you just need buyers.
I was thinking of buying the land and building a house and then sell them. I was looking for an investor to fund some of the project so I don’t outlay as much money or take out a loan for the full price. I would then repay the investor their initial investment plus a profit.
Why not buy the land, subdivide into blocks, sell H&L packages for each block? This way you don't build anything until the client buys the H&L package and they fund the entire build, less outlay/risk for you - isn't that how it's normally done? I've never seen a builder develop and build all the houses prior to selling them, seems like a big risk to do it that way but I could be wrong...
Ok, so does your boss also get someone to invest in his projects? Might be a good idea to find out exactly why and how he does it so you can replicate? If you have the cash to do it and don't NEED to sell it at the end/could afford to hold it for a period (because you're cashed up) then it's a bit different but I personally wouldn't want to outlay for the full build and THEN try to sell it to someone, the risk is you can't sell it for what you need to make a profit. Let the buyer fund the build and take your profit from actually building the house, could that work?
He doesn’t have or need investors. He buys whole streets of land in new estates. He has completed houses sitting around waiting to be sold. I see what you mean but getting the client to fund the project. Makes sense.
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