JV venture #2

Discussion in 'The Buying & Selling Process' started by Sackie, 20th Dec, 2016.

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  1. Sackie

    Sackie Well-Known Member

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    I have made an offer on another JV development deal for a site in Brisbane, 5km from the CBD with views. Most likely to build 5-6 boutique units. Medium chance of the offer being accepted and should know sometime today. There seemed to be a decent level of interest in this site but I think 2 people (from what the agent says) dropped out due to finance. Time is going to draaag today...Please all, direct your positive energy my way!
     
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  2. skater

    skater Well-Known Member

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    Good luck!
     
  3. Sackie

    Sackie Well-Known Member

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    Thanks @skater ! If it's meant to be, it will be. I've done all I can at this point.
     
    Last edited: 20th Dec, 2016
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  4. karmark

    karmark Active Member

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  5. Sackie

    Sackie Well-Known Member

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  6. Cactus

    Cactus Well-Known Member

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    Fingers and toes crossed.
     
  7. alicudi

    alicudi Well-Known Member

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    Hi

    Best of luck.

    Regards,

    alicudi
     
  8. sharon

    sharon Well-Known Member

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    GoodLuck.
     
  9. eskander

    eskander Well-Known Member

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  10. samiam

    samiam Well-Known Member

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    Good news yet!?
    Best wishes
     
    Last edited: 20th Dec, 2016
  11. Sackie

    Sackie Well-Known Member

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    Thanks guys. Offer rejected but still negotiating. They want an increase and we haven't hit out bottom line yet so we increased price but asked for extension on terms. Might know today or tomorrow. Didn't want to put a deadline on this deal as we stand to lose more. Keep those toes crossed @Cactus :cool:
     
    Last edited: 21st Dec, 2016
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  12. Cactus

    Cactus Well-Known Member

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    Firmly crossed for you mate.
     
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  13. Sackie

    Sackie Well-Known Member

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    Not yet....hopefully tomorrow....maybe Santa can deliver me this nice present just in time..
     
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  14. Sackie

    Sackie Well-Known Member

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    OK update.

    Deal done!! :D:D TBH we really thought it wasn't going to get over the line as the agent involved for the vendor was a real PITA and I don't even think for awhile he was actually discussing with the vendor, just taking it waaay too personally. Anyway, in the end I came up in price and they conceded an additional 60 days delayed settlement plus the 120 days originally so all up 6 months DS which we're happy about, especially me as I have a lot going on at the same time.

    So the deal:

    Where: Brisbane CBD (a few KM from there)
    What: 6 boutique higher end 221 units. approx. 100sqm
    Total Development Costs : 2.65m
    End value: 590k-610k X 6 = $3,540,000 (note the lower sale value is calculated here only)
    33.5% Gross return on TDC
    Partner: She is an architect who lives in Brisbane as is not new to development doing her own small developments and also has many useful contacts.
    Builder: Going to be the same guy who will be building my Splitter #1.


    OK....if everything goes to plan (which it never, ever does)...so this is what my 2017/2018 beginning will look like:

    Feb 2017
    : Sell Parramatta development NSW
    Feb-March 2017: Start building Brisbane splitter #1 (was supposed to be this year Nov but just couldn't happen so boo hoo)
    July 2017: Start building JV #1 8 town homes, Brisbane
    August/September 2017: Start building Brisbane splitter #2
    November 2017:
    Start building JV #2 6 units. (i'll try but might have to push it to first thing 2018)

    ...That's more than $10,000,000 worth of projects being undertaken in 2017/beginning 2018. I gotta tell you...I'm somewhat pissin myself just looking at that...

    Will it all work out perfectly? I can guarantee that will never happen... Just hope to survive it all and make a decent profit and keep moving forward.

     
    Last edited: 21st Dec, 2016
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  15. Brady

    Brady Well-Known Member

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    Great work - love seeing that you're pushing on.
     
  16. Sackie

    Sackie Well-Known Member

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    Thanks mate. We have taken on JV's for 2 projects to share the risk, yes also share the profits for those projects but 50% of something is better than 100% of nothing.
     
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  17. Brady

    Brady Well-Known Member

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    Completely agree, best to take something rather than nothing. Always nice to be able to partner with those that have skill set as well.
     
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  18. fols

    fols Well-Known Member

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    Love your work mate. Quality. Look forward to following it.
     
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  19. sharon

    sharon Well-Known Member

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    Wow - you are in for a really big couple of years.
    Looking forward to following your story and seeing where it all ends up.
     
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  20. Sackie

    Sackie Well-Known Member

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    Thanks mate.

    Thanks @sharon

    Yeah lets hope I end 'up' and not 'down'...otherwise I could very well find myself in trouble..I just don't feel I can wait to buy sites 1 at a time as prices are going up and up for good sites.
     
    Last edited: 21st Dec, 2016
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