The real estate industry is enriched with many features one of which includes the luxurious living provided to the clients at pocket-friendly prices. There are projects which are encircled with greenery in order to ensure a healthy lifestyle for the customers. The conveniences are offered to the customers at one of the best sites. There are several professionals who are engaged in providing the same conveniences to the clients. These professionals comprise of.
“Investors to fund real estate projects”
Developer – Builder of a Project
The developer is the most important person or organization building a particular structure for the customers. For developing projects, the developer needs to have adequate funds as well as resources. The developers provides all the amenities at one site to the customers so that they reside comfortably at their lavish projects.
Architect – Designer of the Project
There are architects who provide their expert advice on the drawings of buildings. They also assist while making designs for the project. The architects also lead in deciding
A company that is planning a move, a renovation, or a complete out-of-the-ground construction, and that wants assurance of the project’s delivery by its targeted completion date and within its budget, is more likely to hire a 3rd party project management firm to oversee the whole project from start to finish. Project management should be the core competency of the project management firm you hire since they will have the most direct experience and no conflicts or other interests at stake. The additional cost of bringing in an outside expert will be more than offset by the speed and quality of the project under that expert’s management. Furthermore, good project managers can find competent vendors who can complete projects at competitive prices, they will know typical project pitfalls to avoid, and they can recommend cost-saving processes they have learned over their years in business.
“Multifamily Real Estate”
So how would hiring a project management firm cut project costs? In the following ways: Purchasing power. A PM can drive costs down based on their knowledge of the marketplace and can
Not long ago a real estate project on the South coast of Spain failed. It was a relatively large project real estate focused on people who had retired. I heard about the project when they were working on it and it was in those days when you now say – near the end of the construction boom. But that was not the real and only problem.
Thinking about it, it comes down to the basics of real estate development: Location, location and location.
“Aliasite Real Estate Project”
The chosen location was the Huelva province which lies near Portugal on the Atlantic Ocean, rather on the Mediterranean see. The advantage, it is still relatively cheap out there because much less popular and developed – tourism-wise – as the other side of Gibraltar. But this advantage is more of a disadvantage. There is airport with frequent flights which makes the transport a mayor issue.
That side of the coast is much more industrialized than the other side. Which is another reason why Costa del Sol has
If you are thinking about starting your own real estate project but are strapped for cash, then the following information may be very important in assisting you to find the right private investors for real estate. Anyone who is into the business will clearly tell you that it is a big-money game and although you may have the knack for it, you may not have the finances to support it. If this is your case then you may be looking for some investors for your project. Investors are not easy to find, as people will only invest in projects, which have a good return of investment.
So if you are someone who is looking for a private investor for your real estate project than the following are a few simple rules that may just make your day and get you the investment that you need.
1 Always make sure that the marketing policies for your project are attractive to investors. This will essentially ensure that more and more investors are interested in your project. If the possibility arises that a single investor cannot provide you with all the funds for your investment
Just because winter is upon us, doesn’t mean your construction business must be put on hold. Especially for those companies who are based in areas that don’t experience extreme weather conditions such as snow. However, it is crucial that you take necessary precautions to protect your site and project from the harmful effects of winter weather conditions. A damaged site means loss of business and money, so keeping it well protected is of utmost importance!
1. Protect your building materials from being damaged due to wet weather and cover them with a strong plastic or a heavy tarp. Having to replace materials can be a major expense and is one of the many risk factors involved when working in places with more sever weather conditions. However, there is an easy fix. Before you leave each day be sure all of your materials that are out are covered and protected.
2. Keep excess materials in a protected storage unit. There’s no need to keep excess materials on-site, especially during harsh winter months. Keep extra materials in a safe and dry place until needed. This will save you the headache of trying
Traditional financing provides much needed funding to advance major commercial or other tangible projects, and it is particularly beneficial to companies that plan months in advance. But what happens when funding is required immediately or clients have minimal experience? Asset-based financing can help clients avoid the complexities involved with traditional financing methods.
Because of many lenders’ strict guidelines, the types of large commercial projects they will finance are limited. These agreements involve formal appraisals, third-party reports and approval from loan committees. In many cases, clients also need previous experience or equity partners to qualify. The approval process is long, complicated and uncertain. Commercial financing may also involve last-minute surprises should the bank or financial institution change terms or pull funding altogether. Even with adequate assets, the project may not garner approval. Worse yet, a bank can call its notes due at any moment, because its lending guidelines may have changed or their investors or regulators may not be satisfied with the lending institution’s choice of investments. This leads some clients to private investors (hard money), introducing even more challenges, including higher rates, lower LTVs (loan-to-values), shorter terms, higher fees, and more
Chicago hard money lenders are popular once again, according to finance news. The popularity of private funders fluctuates, a lot like the economy. Years ago, they were considered “last chance” financiers. But, today they are the first and best choice for some borrowers. In particular, real estate investors have found that there are many advantages to borrowing privately. Commercial banks have only so much to offer.
Conventional financial institutions have many rules, regulations and guidelines to follow. The approval process can be lengthy and time consuming, particularly when the funds needed are for real estate investing, rather than a personal mortgage. They require that the borrower has a substantial down payment and typically finance only 80% of the selling price of a house. They have no options for funding closing costs. They can only provide funds for repairs or upgrades if the borrower takes out a separate loan. In short, when compared to hard money lenders Chicago banks take longer and approve less.
Chicago hard money lenders can close on a loan in as little as two weeks. They can pre-approve a loan in just a few days. Many specialize
Too often we don’t spend enough time creating the quality project presentation we should for our projects. One big factor in this is failing to humanize the presentation with photos of the subject matter. For residential and multifamily real estate investment projects and proposals this is in my opinion especially important.
Investors need to comprehend and accept the quality of the investment. Accomplishing this objective is the sum of several factors, but one is the visceral recognition of the reality of the project, the value of the project, the future of the project, and the reasonable expectation of the principal for the investment. Great photos are a big step toward accomplishing this end. Great photos is more than simply picking a few likely buildings and taking photos.
The first consideration is lighting. You want to present a sunny well lit perspective of the scene you are shooting. You don’t want the picture to appear to bright or to show glare. Probably a good morning light or late after noon angle is the best.
Second, you want to offer perspective that is pleasant. Good views of the entry
If we talk about the National Capital Region, Gurgaon positions itself as one of the most preferred residential destinations across the region. The kind of prospects the city offers has led real estate developers to launch a slew of projects all around the city. This is the reason why most of the buyers find themselves in a difficult situation to zero-in at a certain property. To ease out the situation, we have filtered below two of the most promising residential projects of Gurgaon you can consider before arriving at a decision.
.New town Heights by DLF
DLF has started bookings for its integrated township New Town Heights located in Sector-90, 91 & 86 of Gurgaon. This residential project that boasts of its connectivity with NH-8 and Manesar offers 3 & 4 bedroom apartments with attached balconies, store room, powder toilet and servant room.
The built-up area is between 1,760-2,505 sq ft with rich specifications like imported marble/vitrified tiles in living dining passage and lobby within the apartment, laminated wooden flooring in bedrooms, granite/marble counters in the kitchen. The cost per unit hovers between Rs 45 lakh and
Capital is critical right now. Cash is king. Approaching private investors for capital is something that gives a lot of real estate investor’s sweaty palms. This is mainly due to fear of failure or due to hesitation to step out of the comfort zone. Much like making your first offer or talking to your first prospective tenant, private money is something that can be learned – usually very quickly.
A common trend seen among real estate investors (of all levels of experience) is to wait for deals to come up before they approach investors. Though this is a conventional technique and is considered to be safer, it involves too much time and comes with a risk of leaving too many opportunities untouched. So, even if you have your hands on a good deal, it may take a long time before you find the right money for it to materialize. You may also miss out on some other profitable deals, and investors are bound to notice your lack of foresight and confidence.
A better way of raising private money for your real estate investment projects is to reverse the order. While
Amid the ongoing slump in real estate and the worldwide economic crisis, there still appears a demand for affordable pre-constructed houses in a good location such as Miami, South Florida. And this is exactly why last weekend, the downtown Miami Real Estate Market had to stay up late for their open house till past midnight.
Among the affordable pre-constructed houses it offers is Loft 3, where one-bedrooms start at $159,000 and two-bedrooms at $293,000. Finally, prospective buyers who wish to reside in South Florida are now offered affordable housing options.
Two real estate agents from a real estate developer in Miami came in to each buy units, one as a condo investment. One buyer for example is buying a unit for herself and for a client from Spain. Her clients think their prices are reasonable and affordable and she will try to resell her unit.
Another reason why buyers are thinking of buying houses in Miami’s Little Havana is its good location. One prospective buyer, for example, who works for Miami-Dade County government said he’s feeling tired of commuting from South Miami. Meanwhile, a dance professor at
most hoteliers, investors and developers were buoyant when it came to the growth prospects in the Hospitality industry. They had enough reason to be optimistic as every factor which would influence the industry, directly or indirectly, was on a growth trajectory.
The GDP was growing like never before and the whole world had its eyes on the Indian growth story. Plans of expansion filled the newspapers and press releases and investors were more keen than ever to get a fair share of the pie.
The recession, however, had plans of its own and devoured most of the pie. The global economic slowdown and its effect on the Indian economy has doused the fire of excitement of even the most optimistic developers and investors.
It has resulted in an extreme crunch for investment in the hospitality sector, coupled with the decrease in demand for rooms. This double whammy put to rest most of the ambitious plans of expansion across the country.
All players have been reviewing their plans of development, owing to the increasingly challenging macro economic situation at the moment. The total number of
Have you ever wondered what it is like to live in a world that doesn’t need money? You’re probably thinking how good it would feel to skip work, stay in your house, and watch TV all day because all the things that you need are just right in front of you. However, the world you are in now doesn’t work that way and you certainly need money to get things done.
Real estate investors are much luckier because they can use several ways to secure funds for their real estate projects. They can qualify for bank loans or ask hard money lenders for help when they invest property. And if they know someone who has access to quick cash, they can use private money to finance their investments.
First stop, bank loans. Qualifying for a bank loan is one of the common methods of obtaining financing for a real estate project. To get the approval of banks, mortgage companies, and other traditional lenders, a real estate investor should be able to prove that he has outstanding credit rating. He also need to present documents detailing his current financial status and
The Pune real estate projects have been the center of attraction mainly because of the fixed deposits, low rate of interest in banks, plunging returns on mutual funds, and the fluctuating stock markets. It is one of the rapidly growing commercial and residential developing cities in India. Every year, Pune is growing in the real estate business. Now, whether that growth and development is associated to the construction of a residential property, malls or a building, the city has constantly witnessed a significant development. Pune’s several real estate projects are a resource center for active property investors. This clearly indicates the potential of real estate that Pune as a city carries.
Residential Projects in Pune:
There are over a thousand new residential projects cropping up in Pune. These new residential projects can be ascertained by reading and browsing through the upcoming and ongoing properties. These projects in Pune are extremely diversified and lavish that would satiate the needs of you and your family. The residential projects are a juxtaposition of several different types. Pune has huge residential townships generally referred to as small cities, whereas, from the point of view
The thought of a Joint Venture attracts a wide range of people. There are no perfect reason that why people like to enter in to it. People think that getting in to real estate development in partnership will have a good pay back.
People must be aware that why they are doing real estate development joint venture project and they should make compulsory that it must be secured by legally prepared and binding the agreement.
Joint venture projects is basically based on the prevailing market value and location of the property which actually needs a good investment too. Actually it is formed due to lack of enough money. If you do not have enough money but wanted for money growth, then you select the way of partnering. It is a joint force to make something happen which cannot be done by an individual.
When partnering in joint venture real estate projects the individual will be sharing the risk, capitalising and becoming a part or a share holder of a bigger thing. Moreover in this everyone should aware that along with the work and investment, the profit will
The financial benefits of leveraging financing versus cash investments are obvious. Your ROI is always much higher with debt financing versus investing cash. Other benefits of financing include reduction of risk, retaining cash reserves, and additional liquidity that can produce added income. The question is not whether you should secure financing, but how to best position your project to effectively secure funding and obtain the best terms.
The following basic example illustrates how the financing approach can generate over 58% greater return than funding the project entirely with cash. I have been involved in projects where the benefits of financing was 126% greater than funding it entirely with cash or securing all funds from cash investors. While it may be obvious that financing is more profitable than cash funding, the disparity between the two is important to keep in mind, and maximum efforts should always be made toward effectively securing debt financing.
Sample Project – Uses and Sources of Funds
Cash Investment Approach
- Project Cost: $1,000,000
- Cash Investment: $1,000,000
- Months: 12
- Net Revenues (From Sales): $1,300,000
- Capital Gain: $300,000
- Percent Return: 30%
Project Financing Approach
- Project Cost: $1,000,000
- Bank Loan (LOC): $700,000
- Cash Investment: $300,000
- Months 12
- Net Revenues (From Sales):
For real estate investors, Dubai freehold real estate projects are like money machine. They just need to buy a good and profitable free hold property in Dubai and in a matter of two or three years, they can get a tremendous and lucrative return on their investment.
Taking this into account, it is hardly a surprise to know that real estate investors are attracted towards Dubai freehold real estate projects like bees are attracted to honey. After all, who will not be interested in earning a handsome amount of money without any sort of hassle?
Find below some more information on some of the Dubai freehold real estate projects.
Located at Sheikh Zayed road, Business Bay would be completed by 2010. Developed by Dubai Properties, Business Bay will contain more than 230 commercial and residential towers. In terms of statistic, it will cover an area of 64 million square feet. Initial signs are that Business Bay will be identical to Toyko’s Ginza business centers and New York’s Manhattan. This makes it a very popular place as well as a lucrative business project.
Technology is now putting high level expertise power in the hands of anyone interested in residential and/or commercial real estate investment, development, acquisition, construction, flipping, leasing, sales and management of real estate projects. Online sources and technology can help remove the “risk factor” in real estate projects and make it easier to fund and finance projects while avoiding typical high costs and delays of hiring a consultant to analyze, document and validate a real estate project.
A comparative market analysis, feasibility analysis, market study and/or financing and development plan are a must for most real estate projects for many reasons, including:
- Internal analysis of the project and profitability prior to investment
- Structure for project financing, equity investment, partnerships and other funding options
- Understand the true value and market potential of the project
- Obtain local approvals and government incentives
- Marketing, leasing and sales analysis
- Budgeting, estimating and bidding
Real estate projects must be assessed to determine their viability. This typically involves numerous hours of research to understand costs, values, expenses, revenues, rates, terms and other variables. The information has to be gathered, analyzed, compiled, formatted, reviewed, validated and prepared in a professional manner for financing, equity funding, partnerships, marketing, sales, leasing,
I previously shared the steps for creating a professional plan for a real estate project; the importance of obtaining third-party validation; advice in how to find the right financing sources; and suggestions on presenting the project professionally, then closing the deal. This approach will enable you to obtain financing term sheets, letters of intent and/or financing commitment letters from lenders if your project is financially feasible and falls within the lending parameters of the financing institutions that you approach. Nevertheless, financing always requires a cash contribution, as 100% financing is not realistic in today’s market.
Lender requirements for cash equity contributions, deposits or down payments, typically fall between 15% and 40% of the total project cost (85% to 60% Loan-To-Value ratio). A portion or all of the equity value in the property can sometimes help reduce the cash deposit requirement, but it is very unlikely for a conventional lender to completely eliminate the cash contribution requirement because lenders want to ensure that the principal(s) are vested in the project, or have “skin in the game”. The cash deposit is necessary to close the loan and obtain financing.
So, where does the cash deposit come from? There
When attempting to obtain financing for real estate projects, it is important that your presentation and information package be complete, professional, and stand out from competing financing applications. What do you need to have? The following is a list of what should be included.
The first thing is an executive summary. This summary should be able to stand alone and, quite literally, be used as a handout. This portion summarizes what you want to development, where the location of the development is, and why you think the development will be successful. You can include gross numbers, since the detail numbers will be included later.
Next, you need a business plan. This is where you begin to take a closer look at the project. Included would be information on entire process from initial development to sales and marketing of the final project.
Next are the pro formas. These accounting “what if” statements should include a profit and loss statement for the project, a balance sheet and a separate statement of projected income. These statements should cover all expenses and investments from purchase of raw land to ground breaking