From
desk of Colm Dillon ...Author
"Residential Development Made Easy
For your development project to be successful every element must be planned carefully.
Buying land for development is just one intergal part of that planning process; however it tends to be
focus of most start-up developers.
Before starting
process of selecting and buying land for development, you need to decide who or what legal entity is going to buy
land. For instance is it going to be in your personal name, in you and your partner's names or a company name.
Answering that question is important because you need decide who or what entity is going to borrow
money to purchase of
land, but also borrow
money for
total development.
Each individual’s personal circumstances are different. Add to that
different States or Countries in which we live, and and you can see that they are many permutations to be determined before you can answer that question.
These decisions are fundamental to your work as a developer. After all we are developing to make money and setting up your structure correctly ensures that
money you make is tax advantageous.
My best advise is to investigate and engage a good property accountant, a good property lawyer and a good property finance broker.
Notice I have bolded
word property against these three professionals. Please understand that in any profession, there is
need to specialize.
I mean you would not get
best advice from a lawyer who mainly did family law, now would you. What's
answer? Before appointing anybody ... interview them ... after all you are about to base your future on their advise.
Have your personal and or company financial details clearly set out and in particular have your 'wealth plan'defined so you can brief each of these professionals.
Don't do you thinking in front of them. It wastes time; is unprofessional and costs you money. The better
quality of your preparation ...
better
brief you will leave with them.
Except for
Finance Broker, they all charge by
hour.
Please - please - please; if your best friend or Aunt Mary's next door neighbour is a lawyer, accountant, broker - don't engage them! Or if you want to go in that direction, interview them and ensure they have
correct property background.
Residential Development Made Easy goes into more detail as to how you proceed with these professionals and determine which entity actually buys
land; borrows
money; develops it from
greatest tax advantage to you and protects you legally
Let's Get Control of That Development Land
So your plan is progressing. We know who or what entity is going to buy
land. The next point to consider is what 'tool' are we going use to gain control of
land.
You'll see as you progress through
development process, you need to build in as much flexibility 'for you' as you can.
We haven't got there yet, but eventually you'll need to made an application to
local authority in order that you can build what you want i.e. 4/6 townhouses, apartments etc. What happens if
authority says 'no.'
Do you still want to buy
land? I don't think so!
So in this part of Residential Development Made Easy I talk about
various strategies you can adopt to gain control of
land
correct way.
Time To Find That Development Land
One of
things you'll discover in my eBook, is that you can do several development activities at
same time.
One of
'Activities' I tell you to do "well before" any of
above action steps is to do your market research ... yes, I tell you how to go about it!
Is it important? ... Multi million dollar corporations spend 'millons' on market research ... if it's good enough fore them to do it, I think it's more than good enough for you as well. It's professional ... it's necessary ... and it's in your financial interests.