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Joint Venture in houses construction
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PKoli
#11 Posted : Wednesday, February 26, 2014 10:11:18 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
@the deal,

Thanks, I trust we will get the financier. We have finished the concept.
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the deal
#12 Posted : Wednesday, February 26, 2014 11:10:39 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
PKoli wrote:
@the deal,

Thanks, I trust we will get the financier. We have finished the concept.

I'm sure you will...I'm allergic to gava dependent projects especially now we are talking of many gava's...look at South Sudan...that M7 is also showing signs of "last kicks of a dictator"
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Pirate
#13 Posted : Wednesday, February 26, 2014 1:01:53 PM
Rank: Member

Joined: 4/4/2007
Posts: 91
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital



I agree that's a strong upside however it would depends on the terms of the joint venture.

The 2 plots are worth 3.5 mil

My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .

The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .

Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed

Knowledge is power , but action gets things done ...
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Pirate
#14 Posted : Wednesday, February 26, 2014 2:14:22 PM
Rank: Member

Joined: 4/4/2007
Posts: 91
justKiwi wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Milimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


What would you make/loose (if you go joint way)above selling the plots.Assuming;
1.The plots would cost 2m. each x 2 = 4m
2. How much approximately would be your share in a joint case.


The Joint venture I would engage in is one where several people join hands to buy an acre of land and set up 8 stand alone maisonettes . This seems to be working well especially in Kitengela
Knowledge is power , but action gets things done ...
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justKiwi
#15 Posted : Thursday, February 27, 2014 6:56:55 PM
Rank: New-farer

Joined: 8/25/2012
Posts: 32
Pirate wrote:
justKiwi wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Milimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


What would you make/loose (if you go joint way)above selling the plots.Assuming;
1.The plots would cost 2m. each x 2 = 4m
2. How much approximately would be your share in a joint case.


The Joint venture I would engage in is one where several people join hands to buy an acre of land and set up 8 stand alone maisonettes . This seems to be working well especially in Kitengela

What about 1/2 acre enough for four maisonettes?
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the deal
#16 Posted : Thursday, February 27, 2014 8:29:38 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Pirate wrote:
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital



I agree that's a strong upside however it would depends on the terms of the joint venture.

The 2 plots are worth 3.5 mil

My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .

The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .

Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed


One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...

In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...

But before that I would need to do a

1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.

Then after that I will leave you to make a decision as I decide too.
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Lolest!
#17 Posted : Thursday, February 27, 2014 9:49:12 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
@deal, I am thinking joint venture too for a relative. Do you have issues with ancestral land with other developments on the same parcel?
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
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the deal
#18 Posted : Thursday, February 27, 2014 10:40:51 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Lolest! wrote:
@deal, I am thinking joint venture too for a relative. Do you have issues with ancestral land with other developments on the same parcel?


Ancestral land is always tricky but

A. where is the land located?

B. what kind of developments are on the erven?

On the legal aspect...

1. what kind of title deed is this? is it a Master title?

2. Is your relatives name on the master title? if so is the parcel well subdivided? i.e relative A owns from A to B etc
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Mukiri
#19 Posted : Thursday, February 27, 2014 11:23:54 PM
Rank: Elder

Joined: 7/11/2012
Posts: 5,222
the deal wrote:
Pirate wrote:
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital



I agree that's a strong upside however it would depends on the terms of the joint venture.

The 2 plots are worth 3.5 mil

My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .

The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .

Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed


One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...

In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...

But before that I would need to do a

1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.

Then after that I will leave you to make a decision as I decide too.


Serious business!smile

Haya, even I have 1/2 an acre a few metres from where KU is said to be putting up a campus... and a few metres from the beach. Current value 3 to 5M depending on whom you talk to.

Proverbs 19:21
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Pirate
#20 Posted : Friday, February 28, 2014 11:37:46 AM
Rank: Member

Joined: 4/4/2007
Posts: 91
the deal wrote:
Pirate wrote:
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital



I agree that's a strong upside however it would depends on the terms of the joint venture.

The 2 plots are worth 3.5 mil

My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .

The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .

Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed


One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...

In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...

But before that I would need to do a

1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.

Then after that I will leave you to make a decision as I decide too.



Thanks for you comments . As you have mentioned, the concept would determine the financial figures and split thereof. In the current situation, I would be looking to bring the land + partial financing (say 50%) as my equity to the venture

Feasibility of the project would be my main concern given the preference of gated community >8 units over stand alone housing
Knowledge is power , but action gets things done ...
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