Categories
Blog

STAGES OF PROPERTY DEVELOPMENT – STRUCTURING LAND DEALS

Part 4 of Sven’s video series on The Stages of Development, has landed! here are his Deal Options:

Unconditional Purchase: is the most basic form of purchase and in our opinion ‘quite dodgy’ if the land does not have planning, we don’t use this option very often!

Conditional Land Purchase Contract: once conditions have been met such as planning the developer is obliged to buy the land.

Option Agreements: Our favoured method of deal.  A contract with a set time, a long stop date and set price.  It gives the developer the option of purchasing the land in that time frame, allowing the developer to obtain planning, undertake due diligence and to purchase the land if they still want to.

Promotion Agreement: Between the land owner and developer, usually the developer will do the work to promote the land i.e. get the planning, then sell to the open market.  Splitting the profit with the land owner.

Joint Ventures: These can take many forms, usually between land owner, developer and a finance partner.  Who come together with an agreement to suit all parties.  Make sure there is CLARITY on this agreement, highlighting what everyone’s roles are and what they are bringing to the table.  Our advice is to try not to partner with people who have the same skill sets as you, compliment not duplicate!

There will be a total of 8 videos in Sven’s series on The Stages of Property Development, missed any? don’t worry you can find them all on our news page, scroll down.

Categories
Blog

NEW DEVELOPMENT PROJECT – BAYFORD ROAD, LITTLEHAMPTON

Our latest Littlehampton project is underway. This mixed use property, consists of a commercial unit on the ground floor, which was recently used as a cafe with a 2 bed maisonette above.⠀

Target Five’s plan is to convert the ground floor commercial into a one bed apartment (plans currently being drawn up by our Architect. The maisonette above will be developed from a 2 bed, 1.5 bathroom, to a 3 bed with 2.5 bathrooms. By repurposing the kitchen to a bedroom with a separate open plan kitchen/living space.⠀

Our builders are onsite and have started the rip out, which is casuing a bit of a headache already as they have identified condensation spores, as there are no damp proof membranes, in fact we have daylight through the slate roof tiles! so a re-roof is in order.⠀

We will keep you up to date as this development progresses.

Categories
Blog

STAGES OF PROPERTY DEVELOPMENT – DUE DILIGENCE

In the third of Sven’s video series on The Stages of Development, he is looking at the key points when undertaking Due Diligence:

The 4 Key Points To Follow:
– Legal due diligence; looking at searches, land registry, titles.  Are there any easements or covenants?

– Physical site due diligence; boundaries, topographical survey, soil samples, percolation tests.  Some of these tests can only be done at certain times of the year, so you will need to factor this in, especially if you’re offering option agreements/subject to contract agreements.

– Planning due diligence; MOST IMPORTANT.  We recommend using a planning consultant! This is where the value is most definitely added!

– Construction & onsite due diligence; is it feasible? What are the constraints, especially for airspace developments, mixed use conversions or mews developments.

Categories
Blog

EXCHANGED – BROADWATER ROAD, WORTHING

Yesterday we exchanged on Broadwater Road, Worthing, a property we sourced and secured for our returning investor client. This property came with plenty of challenges throughout the conveyancing period, one of which was Japanese Knotweed!! but with the Target Five team on hand this was another issue we were able to overcome, along with the perseverance of our associates @starpropertyuk the sellers, we were both able to get the property over the line.

The property is a freehold mixed use property, comprising of a vacant ground floor commercial premises with a large flat above, with an extensive rear garden accessed via a road to the rear offering development potential (STPC).

With the Japanese Knotweed treatment plan in action and our planning application in here’s our brief for the property:

– Retain and refurbish the commercial unit
– To the rear we hope to extend and create a separate 1/2 bed garden apartment STPC
– Upstairs we will be creating a 4 bed coliving HMO

We will of course keep you up to date with how we progress with this project.

Categories
Blog

CONSIDERING INVESTING? OUR TOP TIPS

Know your end game – When do you need the money returned & what interest are you hoping for.

Who is as important as what – The project is important but you need to know that you are investing with the right people, get to know the people around & behind the project, understand them, their reason, moral stand points etc. Never give a company or organization money on a first conversation, we would never ask someone we didn’t know to invest with us, we like to know who we are working with you should too.

Learn about the project – Do your own research into the project the money is intended for, what will it be used for in the project & how will the company deal with problems & challenges.

Ask about a track record, success’ & failures.- You will learn a lot about the people you will be investing with by how they deal with problems & how they react to being asked challenging questions. A reputable, confident & successful property company will have dealt with a fair share of issues & will not have a problem discussing how they overcame them with any potential investor.

Ask what securities are available – There may be an option for a second charge or deed of priority; it may secure your funds more, but be mindful this will be reflected in your return.

Be Fearless, but not reckless – Your money should work hard for you, but it won’t without you taking a leap of faith & investing. It’s ok to be worried or anxious but if you have followed our tips you should have all the information you need to make an informed decision.

Consider reinvestment and rolling over your interest – Interest earnt from passive investing is considered an income, & is therefore liable to be taxed as such. If at the end of the term, you don’t need the funds back immediately, consider reinvesting or extending the terms & adding the interest to the pot. You can then take the interest profit when it is most tax efficient for you to do so.

If you would like to learn about investing with us, get in touch we would be happy to start the conversation with you & see if we both feel comfortable with an investment agreement (01273 525656 or information@targetfive.co.uk).

Categories
Blog

INTRODUCING OUR NEW LITTLEHAMPTON PROJECT

After a tense and very busy 2 weeks, we have another property over the line!

Yesterday we exchanged and completed on this former Barclays bank located on the High Street, Littlehampton. Originally the property was sold at auction but the buyers were unable to complete, we bit the bullet and jumped in on this exciting development opportunity at very short notice.

As you can see from the floor plans* this is a BIG opportunity, we are looking at developing 2 HMO’S above, retaining and refurbishing the commercial element and potentially looking at the additional land.

We will keep you updated as we progress with this project.

*please note the floorplans are for size reference only and are not our chose interior layout.

 

 

Categories
Blog

NEW DEVELOPMENT – BAYFORD ROAD, LITTLEHAMPTON

Exciting news, we have just exchanged and completed on another property, Bayford Road, Littlehampton, located moments away from the seafront.⠀

A substantial mid-terrace period house, currently 5 beds spread over 3 floors, in need of complete modernisation throughout.⠀

Our Plan:⠀
To create a 8 bed HMO with 6+ bathrooms, with a large open plan  kitchen/living space, suitable for co-living sharers.⠀

Works are ready to start….here we go!

Categories
Blog

NEW DEVELOPMENT – ALDWICK ROAD, BOGNOR REGIS

We have exchanged on our latest property with completion on the 18th Feb!⠀

????????: Aldwick Road is just outside the main town centre of Bognor Regis and the street consists of various retailers and restaurants. The seafront is a short walk away.⠀

???????????: currently the property comprises of an extensive vacant ground floor retail premsies, which is selfcontained, accessed to the right of the property across the upper parts is a 5x bed HMO with a good sized garden.⠀

We have ??? plans for this property, with a number of proposals currently being worked on, ready to go in for planning.⠀

Categories
Blog

TARGET FIVE’S FUND FACTORY

We are actively seeking and sourcing new profitable property/land opportunities at all times, once assessed and ensured profitable for us or our clients, we want to make sure we are able to progress and buy them. ⠀

This means leveraging our cash and working capital to work hard for us. By making sure we only put in the minimum amount of cash to each project, we are able to do more of them. ⠀

Therefore we need to use alternative funding for the balance of the project costs. (See previous posts about different funding types)⠀

We often move our cash around our pre purchased projects to make sure it’s working in the most efficient way for us. ⠀

We call this our ‘ Fund Factory’ ⠀

Key to this is constantly having a handle on where money is deployed and how much extra funding we need, having a number of different options on each project and also that we are fully aware of all the costs involved on each project’s profit margin. ⠀

It’s not always easy, and requires tenacious documentation and bookkeeping. If it was easy everyone would be doing it!⠀

Categories
Blog

GEORGE STREET, HOVE – SITE UPDATE

We are now into the final third of our project on George Street, Hove. A mixed use property, which was once a former banking hall.

ᴏᴜʀ ᴘʟᴀɴ ꜰᴏʀ ᴛʜᴇ ɢʀᴏᴜɴᴅ ꜰʟᴏᴏʀ:⠀⠀⠀⠀
Create 2 x Commercial unit on the ground floor, open plan with kitchenette, store and separate WC.⠀⠀
⠀⠀
ᴏᴜʀ ᴘʟᴀɴ ꜰᴏʀ ᴛʜᴇ ꜰɪʀꜱᴛ & ꜱᴇᴄᴏɴᴅ ꜰʟᴏᴏʀꜱ:⠀⠀⠀
Create 4 x Twodio flats on the 1st and 2nd floors comprising a shared separate kitchen, with en-suite shower rooms and off-suite shower rooms.⠀⠀

Where we are:⠀⠀
➕ 2nd fix nearly complete for most of the project⠀⠀
➕Final plastering being done ⠀⠀
➕First fix done on the extensions, ready for tacking & plastering⠀⠀
➕Bespoke wardrobes fitted into the alcoves, making use of dead space now completed⠀⠀
➕Feature wall black brick slips are being fitted⠀
➕Kitchens installed⠀
➕ Delay with installing the services, obtaining MPAN numbers, UKPN site visits and registering new addresses ⠀