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Raise big upfront cash strategies - subdivision

Discussion in 'Property Finance' started by Ichigo, 24th Jul, 2015.

  1. Ichigo

    Ichigo Well-Known Member

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    Subdivision requires a bigger cash amount being available upfront. What strategies can be used to raise such large amount of cash upfront?

    For example, I assume the following amount is required in cash upfront (correct me if I'm wrong with the items/numbers & if any is missing):
    - 10% deposit
    - Stamp duty
    - $60 per sqm of property to be demolished
    - Big trees removal ($2-4k per tree)
    - Subdivision costs ($25k per lot)
    - Interest repayment costs
    - buffer (extra 5% of purchase cost)
     
  2. Be Developer

    Be Developer Property Developer Business Member

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    Professional fees and contribution cost.

    Investors use LOC or cash to fund the cost of subdivision.
     
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  3. Mick C

    Mick C Well-Known Member

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    What Be developer said ....

    1. Cash out / loc/ Equity

    2. Cash

    3. Private funding for the sub
     
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  4. Ichigo

    Ichigo Well-Known Member

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    @Be Developer, just to clarify, isn't the contribution cost and subdivision cost the same thing? I was referring to the local council cost when I listed 'Subdivision costs ($25k per lot)'.
     
  5. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Depends on state.
    In Wa depends on which council and number of lots so something to look into for your target areas.
     
  6. Ichigo

    Ichigo Well-Known Member

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    thanks. looks like it's $30k per lot in my target area.
     
  7. eggnog

    eggnog Active Member

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    Thats cheap. Would love to do 30k per lot subdivisions. You sure you've costed everything? Im looking at 60-70k per lot.
     
  8. Ichigo

    Ichigo Well-Known Member

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    I mean 30k per resulting lot. So for a simple subdivision of a plot into 2, it would be 60k.