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. ⠀
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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. ⠀
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Therefore we need to use alternative funding for the balance of the project costs. (See previous posts about different funding types)⠀
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We often move our cash around our pre purchased projects to make sure it’s working in the most efficient way for us. ⠀
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We call this our ‘ Fund Factory’ ⠀
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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. ⠀
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It’s not always easy, and requires tenacious documentation and bookkeeping. If it was easy everyone would be doing it!⠀
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