PARTNER WITH PPS
The key to successful property development is a combination of expertise, time and money. On occasion, PPS partners with high net worth investors or land owners by supplying the expertise and time, while the investor or land owner supplies the money or land as the case may be.
In the case of an equity partner, the investor supplies the required equity in the form of cash or other security and borrows the balance of project costs.
PPS manages the total development process from concept to completion. At the completion of the project profits are shared between the investor and PPS.
The amount of cash or equity required by the investor varies with the scale and type of project but generally access to a minimum of $1 million in cash or equity plus a strong borrowing capacity is desirable.
Types of projects would typically include apartments, land subdivisions or townhouses. If you have access to at least $3 million there may be the opportunity to venture into more profitable retirement projects.
Often, people who own land with development potential lack the requisite expertise, time or money to develop their own land so they end up selling their land to a property developer who then goes on to develop the land for a substantial profit.
However, providing the land has appropriate zoning and little to no debt, another opportunity exists whereby the land owner supplies the land and PPS supplies the expertise, time and arranges the money to complete the project.
At the completion of the project the land owner receives the pre-development value of their land and the project profits are shared between the land owner and PPS. This significantly increases the returns for the land owner.
If you have access to cash or equity or own land with development potential and wish to discuss your options further please contact us here.