In Property Business – no matter which strategy we pick – if we want to be successful we need to learn that we cannot do everything ourselves.
We need to ask others for help/ expertise and accept the cost of doing business.
We are facing constantly interest charge here, commission there. Cash is flowing, unfortunately away from us.
We are looking for investors, partners, professional teams to see the project through. We are giving away first, second, third claim to the pie, hoping that at the end there will be enough left for us to make the whole project worthwhile.
So how can we make sure we are maximising our profit and get most of our development?
Of course we will try to have as much control of the outcome as we can. We’ll do our due diligence, KYC, AML checks, reference our team, assess the risks and try to mitigate them, we will create programme where everything will be scheduled to the hour, everyone will know their roles and duties.
We created this well-oiled machine and in 18 months’ time we will deliver! Right?
-What If the planning approval gets delayed due to insufficient information or some requirements not met?
-What If builders work gets delayed due to missed delivery or rework required caused by design flaw or mistake not caught during design review?
-What If your private investor 12 months into the development loses his “sophisticated investor” or “High net-worth individual” status?
You’ll need to find extra cash quick, at costs of another sliver of your piece of the pie.
With so many things that are out of our control, we need to focus and start our development with End in Mind – THE SALE
There are many ways to approach Sale Process
but with average Time on Market increase by 10% on average in comparison to last year we need to consider cost of finance all that we save on professional marketing will get consumed by interest on our borrowings.
More expensive route:
We’ll employ marketing team, which will speed up the sale process through effective marketing but with sudden property price dip in February first time in six months our predicted market value might not be achievable and we may be forced to sell below asking price like many others in April 2018 and with added cost of marketing team we are sacrificing another piece of our profit to finalise sale and release the funds.What if apartment sales fell through like the additional 7.1% of other uncompleted sales in February and March this year and you’ll have to start the whole process again?
Innovative cost effective route
With this route you can start the marketing process as soon as architectural plans are released and interior design for show flats finalised.
You can create beautiful photo-realistic Computer Generated Images (CGI) and Virtual Walk-through and get interest and create a marketing funnel for your apartments, advertise to targeted audience and make sure that even if the sale fell through you have enough time to find another buyer quick and you’re not desperate or motivated by the loan interest eating away your profit.
Create long lasting digital Asset that can be used at any stage of your development.Secure your profit regardless of market fluctuation with small in grand scheme of things investment.
CGI can be introduced at any time but the sooner you do the quicker you’ll see all of the benefits… the time is NOW.