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Joint property development payable by rent only
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hobbit
#1 Posted : Thursday, May 28, 2015 1:29:35 PM
Rank: New-farer

Joined: 5/25/2011
Posts: 88
Wazuans,

Help me out. Do we have investors who one can jointly develop a commercial plot and then pay off using the rental income with the plot owner having a retainer of like 20% until you pay off your property.

I am writing in line with the recent Interest rates which are just too high to develop using borrowed funds.

Does these chinese guys have any these arrangements since am sure international fund could be cheaper??? Just curious.
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Gordon Gekko
#2 Posted : Thursday, May 28, 2015 4:55:00 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
hobbit wrote:
Wazuans,

Help me out. Do we have investors who one can jointly develop a commercial plot and then pay off using the rental income with the plot owner having a retainer of like 20% until you pay off your property.

I am writing in line with the recent Interest rates which are just too high to develop using borrowed funds.

Does these chinese guys have any these arrangements since am sure international fund could be cheaper??? Just curious.

Too general to get a coherent response. For starters:
What is the projected development cost?
What is the projected income?
When does the projected income come on stream?
What is your previous experience in such developments?
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Chaka
#3 Posted : Thursday, May 28, 2015 8:43:23 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
I have nil experience in property but what I am wondering is this:
Are you certain you will get tenants after the commercial property is completed?
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Tara
#4 Posted : Thursday, May 28, 2015 9:32:35 PM
Rank: New-farer

Joined: 12/18/2012
Posts: 94
I have often heard that this is possible but no one seems to have names/contacts of investors etc. If anyone can point us in the right direction we all would be grateful. I have no experience with this level of property development.
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Sevian
#5 Posted : Friday, May 29, 2015 5:48:27 AM
Rank: New-farer

Joined: 4/8/2015
Posts: 42
When you have very 'viable' ka-plot (reasonable size, great prospects in that location! Location! Location!) money will come looking to develop the project. Comes in form of joint venture with your. Contribution being the value of land and your share being its component in the overall cost.
But most banks don't fund projects with projected cashflows. You must demonstrate current cashflows, na siyo pesa kidogo wanauliza.
Plot iko wapi
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kyt
#6 Posted : Friday, May 29, 2015 1:15:01 PM
Rank: Elder

Joined: 11/7/2007
Posts: 2,182
go to equity a guy, you will get a joint ownership arrangements, it's something i have seen being done
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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hobbit
#7 Posted : Friday, May 29, 2015 1:25:13 PM
Rank: New-farer

Joined: 5/25/2011
Posts: 88
Gordon Gekko wrote:
hobbit wrote:
Wazuans,

Help me out. Do we have investors who one can jointly develop a commercial plot and then pay off using the rental income with the plot owner having a retainer of like 20% until you pay off your property.

I am writing in line with the recent Interest rates which are just too high to develop using borrowed funds.

Does these chinese guys have any these arrangements since am sure international fund could be cheaper??? Just curious.

Too general to get a coherent response. For starters:
What is the projected development cost? 20million
What is the projected income? 235k
When does the projected income come on stream? after construction is done and rental hse are occupied. occupation is guaranteed
What is your previous experience in such developments? None on joint venture
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streetwise
#8 Posted : Friday, May 29, 2015 1:36:29 PM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
Equity, what are trhe rates for such an arrangemnt and what how long will it take to complete repayment
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Chaka
#9 Posted : Friday, May 29, 2015 3:58:44 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
hobbit wrote:


When does the projected income come on stream? after construction is done and rental hse are occupied. occupation is guaranteed
What is your previous experience in such developments? None on joint venture

[/quote]

Thought you said it was a commercial development?
20M to me looks doable via some partners..form a Co.and have say 5 guys each contribute 4M,you contribute the land(you will all be directors of the Co.),then agree on how to share the rent or the houses after project is complete?
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  | | Edit by user: Friday, May 29, 2015 4:05 PM | Reason: Not specified
sparkly
#10 Posted : Saturday, May 30, 2015 8:35:18 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Chaka wrote:
hobbit wrote:


When does the projected income come on stream? after construction is done and rental hse are occupied. occupation is guaranteed
What is your previous experience in such developments? None on joint venture



Thought you said it was a commercial development?
20M to me looks doable via some partners..form a Co.and have say 5 guys each contribute 4M,you contribute the land(you will all be directors of the Co.),then agree on how to share the rent or the houses after project is complete?[/quote]

The landowner might prefer an outright transfer of his share then he can sell immediately or keep for rental income.
Life is short. Live passionately.
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