Sample 1 - Blog #joint venture developmentsSample 1 - Blog #joint venture developmentshttps://lololol.zohosites.com/thoughts/tag/joint-venture-developmentsFri, 02 Aug 2024 20:50:32 -0700http://zoho.com/sites/<![CDATA[Property Investment for Beginners]]>https://lololol.zohosites.com/thoughts/post/Property-Investment-for-Beginners

A Quick and Easy Guide to Safely Investing in Property

The property investment process can be a daunting one, especially if you are new to real estate. Here's some advice on how to get started:

1. Understand your motivations and goals

2. Decide which type of investment is right for you

3. Get help from professionals

4. Understand what it will take to achieve your goals

5. Take action and execute your plan

To help you navigate the property investment process and start on the path to financial independence, we created this guide to answer the most common questions about real estate investment.

1. What are your motivations and goals?

Investing in property can be a great way to accomplish a number of different financial goals. Maybe you're looking to generate passive income, build long-term wealth, or even just get a better return on your investment than you would with other types of assets. Whatever your motivation, it's important to have a clear idea of what you want to achieve before you start investing.

2. What type of investment is right for you?

There are numerous ways to invest in real estate, each with its own set of pros and cons. You can purchase an investment property outright, partner with others in a joint venture, or even invest in a real estate investment trust (REIT). The best way to choose an investment strategy is to align it with your overall goals and risk tolerance.

3. Who can help you achieve your goals?

One of the most important things you can do when starting out as a property investor is to seek out the help of experienced professionals. A good real estate agent can point you in the direction of properties that fit your criteria and budget. And working with a qualified accountant or financial advisor can ensure that your investments are structured in the most tax-efficient way possible.

4 Understand what it will take to achieve your goals.

No matter what your goals are, it's important to have a clear understanding of what it will take to achieve them. This means having a realistic idea of the time and effort required, as well as the associated risks and potential rewards. If you're not willing to put in the work or take on the risk, then property investment may not be right for you.

5 Take action and execute your plan.

Once you've done your homework and decided that property investing is right for you, it's time to take action and execute your plan. Property investing is not a get-rich-quick scheme. It's a long-term strategy that can provide you with financial security and independence.


There are a few things you need to do in order to be successful at property investing. First, you need to educate yourself on the subject. You need to know the ins and outs of the market and what factors will affect your investment. Second, you need to have a solid plan in place. You need to know what type of property you're looking for, where you want to purchase it, and how much you're willing to spend. Finally, you need to be patient. Rome wasn't built in a day, and neither is your portfolio. It takes time to find the right properties and make the necessary improvements before you see any return on your investment.

If you follow these steps and remain dedicated to your goals, there's no reason why you can't achieve success as a property investor. Just remember that it takes time, effort, and perseverance to reach your desired level of success. So don't give up if things get tough—keep moving forward until you reach your ultimate goal!

You can finance your property development through four ways. Which one do you think will be the best to fund your property development? We can help you get started. Call today on 02032909019 to schedule an appointment with one of our experts.

]]>Fri, 13 May 2022 22:00:00 -0800<![CDATA[A Dozen Things to Consider If Seeking Joint Venture Capital for Residential Development ]]>https://lololol.zohosites.com/thoughts/post/A-Dozen-Things-to-Consider-If-Seeking-Joint-Venture-Capital-for-Residential-Development
They say a Team is only as strong as its weakest link and as you can imagine, investments in real estate can range from the relatively inexpensive to the extravagant, depending on location and the specific asset whether Residential, Commercial or Mixed Use as well as ground up or conversion and not forgetting whether any existing income or not. 


Either way, even when looking at a modest or starting investment, there is always the risk of unexpected issues and chances are more than likely this will be the case. Planning, Execution & Contingency are crucial - better to spend more time planning than rushing into a project. 
Part of those crucial steps in the investment process is raising capital both senior debt, mezzanine and for the purpose of this article, Joint Venture Equity which will be our focus. Potential capital providers range from private individuals, private equity firms, asset managers, family offices, pension & investment funds and even housing association to name a few.                                

Whilst all these named stakeholders are looking for solid returns, there are a number of things they will be considering before stepping down this path, including who makes certain decisions, whether the site is ready to build on, or what kinds of potential downsides there could be ranging from experience, market - economic, political, social etc. 

Below we explore some of the crucial factors that real estate developers should keep in mind when raising funds for an investment and why those considerations are so vital to their long-term success. 

We aim to deliver much needed capital for SME’s and Property Developers.

1. Transparency & Expectations... 

Transparency as well as setting clear expectations for all parties is crucial at the start and ultimately builds trust for should be a long term WIN, WIN, WIN business partnership. Typically the developer is the general partner with the equity capital provider being the limited partner and may or may not have any say in the finishes chosen for a rehab / development scheme. Can they stop by the property and give direction? Generally, they provide funds for an agreed-upon rate of return plus profit share proceeds. As can be expected if you are dealing with the more seasoned private equity, asset management or family offices, do expect dictation of level of involvement, reporting etc. 

2. The Financials & Projected Returns... 

If experience is one critical factor, the reputation is next and just as important as your most valuable asset, and investing in real estate is a long term game with each project lasting anything from 15 months to 60 months or even longer. This means that you'll want to raise funds again and again hopefully and preferably with the same investors. Will those investors want to work with you again? The answer is  YES & IF you deliver on and execute according to budget, timeframe etc as promised. It is therefore important to be very cautious with your projections, planning for the worst and any and all unexpected events - the proverbial, under promise and over deliver. Ultimately impossible to foresee every eventuality with COVID 19 global health pandemic being an example however, RISK planning and CONTINGENCY are prudent ways to mitigate the unexpected. 


RETURNS 

  • Typical expectations is IRR in the twenties and or 1.5 - 2x Equity multiples subject to development circumstances. 
  • Fixed & preferred return on capital drawn 
  • Profit share ranging from 50/50 to weighting in favour of majority capital contributor of 70/30.

Simply put, if you are risking the least of hard cash, its reasonable not to expect profit share in your favour. Not forgetting the fact that you will have earned a development management fee before anyone else. 

3. The Right Perspective 

Simply put, "put yourself in the other persons shoes". When you are raising capital like in an business negotiation or exchange, you MUST look at things through the investors' eyes as well as yours for a WIN, WIN, WIN and more importantly be able to anticipate concerns and therefore address them satisfactorily. "Failing to plan is planning to fail!" and many real estate developers and business people alike fail to prepare for what should be most basic expectations like

  • How is my money secured? 
  • What is my guarantee should things go wrong? 
  • What market data can you provide to back your financials, back your property sales values? 
  • What independent cost consultants or quantity surveyors reports can you provide to back your build cost assumptions 
  • Do you have adequate Net-Worth to back your personal guarantee? 
  • Is the corporate guarantee you are offering, backed by adequate assets? 
  • Is the business even solvent? 

Capital is primarily concerned with half a dozen key factors

  • Demonstrable ample experience of executing similar projects successfully on-budget, on-time and anticipated returns. 
  • The Team thats going to deliver the project and their demonstrable credentials 
  • Prudent business plan backed by concrete data, market etc as well as risk and contingency assumptions 
  • Project timeframe - the longer the risker and the more difficult to determine risk factors 

Simply put what investors what to know is 

    • Whats the RISK and 
    • Whats the RETRUN offered and putting into the mix, is this project and developer worth investing in and with? 

4. Co-Investment Capital - Your Contribution 

Your monetary, quantifiable commitment to the project is not an option but a MUST when raising funds for real estate investments. If you can't put your own CASH into a project and are not even willing to provide appropriate personal guarantees (PG), it says one thing and one thing only - I want you to risk your capital but not mine. Its surprising how many "so called" developers as well as business people want to take third party capital on a handshake that they would not do themselves if the tables were turned. Be prepared to fully commit if you believe in your business plan as much as you say. After all, "Actions Speak Louder Than Words."

5. Professional External Team Players

Note. Raising money for real estate development investment should be from professional capital lenders (specialist development senior debt providers, private equity, family offices, asset managers and the like) who understand the market and the risks. Professionals will provide a service of giving real feedback on your investment and if successful in partnership will bring a lot more to the table than just capital - their experience and market expertise; network of industry contacts etc. 

Corporate & Commercial Law 
  • Your legal advisers to review and assist with all contractual law matters from joint venture agreements to contractors, acquisition and ultimately disposal and dissolution Sherrard Solicitors 

Cash Flow Finance, Invoice Finance, Development Debt, Mezzanine & Joint Venture Equity Capital 
 We understand that there’s no one size fits all policy when it comes to business finance. Your business model, sector, ambitions, and numerous other factors all play a role in deciding which finance option is the right one for you.  

Building and Construction Contractors 
Want a Turn-Key Building Contracting Solution? With a team of Planners, Architects, Structure Engineers and M&E Consultants that can design your dream house with a fixed price. Durisbuild take full responsibility to deliver your project from concept design to completion. 
For more information check out the Durisbuild-Durisol-construction-method 
]]>Thu, 07 May 2020 00:17:20 -0800<![CDATA[Backing Property Developers Crucial for Solving Housing Crisis]]>https://lololol.zohosites.com/thoughts/post/Backing-Property-Developers-Crucial-for-Solving-Housing-Crisis

Funding Homes: Bridging the Gap Between the Supply and Demand of Property Development

The housing crisis is putting pressure on young families and while the issue was addressed in Philip Hammond’s budget, the government still isn’t going far enough. The industry needs to back and invest in forward thinking property developers to really tackle the crisis and ensure that aspiring homeowners have access to affordable options.

The government has set out plans to build 300,000 new homes a year but with past targets being missed, there’s uncertainty as to how well the new goals will be followed through. The shortage in housing is contributing to the highly competitive property market and spiralling values, pricing many Brits out of the market altogether. While noting there’s no single move that can correct the housing crisis, GIC Capital is taking steps to boost the market by offering a means to inject funds, allowing developers to carry out their plans through its 100% Development Capital service. 

We’re encouraged to see that housing is remaining on the government’s agenda but so far plans are having only a limited impact. There are property developers across the country that are eager to launch their developments to provide more options to those searching for their next home. We connect these developers to investors that want to take advantage of the growing values, supporting the economy and those involved in the projects. 

Acting as a facilitator, GIC Capital helps property and land development plans get off the ground by connecting developers with partnerships that can offer 100% of the funding needed. Through carefully selecting both experienced residential property developers and reliable investors, GIC Capital hopes to provide the capital needed to fund greater levels of affordable home building across the UK. 

The terms of the 100% Development Capital service can vary but typically developers will retain 60% of the profits generated, while investors share the remaining 40%. At a time when access to capital and interest rates are both tight, it offers a lucrative option for both parties thanks to the exceptional margins in the property sector. 

We’re keen to work with developers that are creative and passionate about what they do. Whether they have a vision to create a new multi-unit block of residential flats or are planning to tackle a conversion project, we’re always looking for ways that we can offer support. 


Are you a property developer in need of finance? Look no further! GIC Capital specializes in secured property development finance and can help you unlock capital quickly & efficiently. Contact us today to get started. #GICCapital #PropertyDevelopmentFinance #Bridging

#fundinghomes #propertydevelopment #supplyanddemand #realestate #investment #homeownership

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

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