This is in no way designed as a quick short cut to what is, in many ways, the hardest element of property development. It is certainly where a lot of mistakes are made and ones that are often then realised very slowly and tortuously.⠀
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Key considerations – hardly breaking ground but…⠀
➕GDV and ease of sale/ refinance (location consideration).⠀
➕Purchase Price⠀
➕Additional costs and taxes⠀
➕ALL In Refurbishment cost⠀
➕Finance Costs⠀
➕Profit⠀
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AND⠀
➕Look and feel of the project.⠀
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We have spreadsheets and checklists for all of the above. We are constantly amending them to represent latest costs and values / square footage.⠀
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The last bit is VITAL – does it feel like a project that fits within your broader strategy and plan. This isn’t just about size but also about what it will look like, will it improve your brand and increase your experience base. The ADD to the ADD.
– Andy Babbayan; Target Five Group Managing Partner & Acquisitions Director