Think Big, Start Small, Act Now
I wonder who popularized the words above. But for me, the wording gives enormous positive energy. To start a property business thinking big is needed, but sometimes we get stuck that big thinking we need a greater effort. It's not!
The following sequence will provide an overview to you that for a property business can be started from a very small thing. Being a broker instance. But you gain nothing. What if I give tips to become a developer / residential development on a small scale. Four, five, six houses, even a single house you can make and deliver a first-class developer. Remember just one home! But to realize your big dreams, do not just stop at one house alone. Focus and continuity is needed here.
You shoot with a small housing, you will not be dealing with complex licensing bureaucracy. In some areas the limit is different. Usually in the 4 plots, you are required to take permission from the land up to the permits fatwa location. While a maximum of 4 lots, you simply submit Building Permit or IMB. This will reduce the amount of capital that you must remove.
Capital Should Not Be Large
Capital! Yes! Capital should not be large. Hopefully you already have a plot of land is ready for construction. Whether it belongs to your parents, your friends or other people who want to work with you. You do not need to buy a plot of land ready to build right?! Just open the newspaper, looking for LAND FOR SALE classified ad entitled, telephone and convey your goals. Long story short, you've been "had" lots ready for construction.
To build a house with the money who? Easy. Do not lose sense. If the land is already owned, marketed as you stay home design. Set just a down payment of 30% of the sales price. It is sufficient to build the house of your capital.
Logically from where? See, eg, the development budget is 2 juta/m2. Suppose you sell a type 45 m2, so the total cost of the building is 90juta. Selling price of 45 types for example 250 million. It means that 30% of 250 million is 75 million. 75juta means is 83.33% of the 90juta. Are we going to play a hard cash? Oh no ... definitely not. Take advantage of contractor personnel so that we can pay a contractor to progress. Can we reserve deficiency payments from the mortgage disbursement of 175juta.
Think! What if a contractor willing to pay for a turn key, to key handover, the new contractor to receive payment? 75juta means is PURE MONEY! Contractors are paid with the mortgage melt can we siasati with what is commonly called STANDING INSTRUCTION or mortgage disbursement instructions which mentions a number of funds to be transferred to our account and contractors.
Design house from where? It's easy mah. You live on the internet browsing or collecting brochures sells residential indeed, you just select and specify appropriate to your soil. If you have the skill to use the design program, you can do yourself. Or you just pay a consultant. Done!
Simple calculation
Remember , we are a small developer . Calculation was simple. Suppose a land area of 100 m2 appreciated 300ribu/m2 . So the price of land is 30 million . 45 types of buildings such as the above count is 90 million . It means your capital is 120 million . House price survey type with your home . Suppose the price type 45 in the vicinity of the location you are at 300 million . The logic is simple , if you sell your house at a price of 250 million did not sell well ? You your gross profit is 130 million instead ?
If you capitalize all of which amounted to 120 million means you have 108.33 % gross profit . Though you capitalize consumers 75 million ( remember the down payment ) , that means you only capitalize 45juta which means you have a gross profit of 288 % of your capital . Though land is land that you control your companions for cooperation with 30M ( remember the price of the land ) , meaning that you simply capital 15 million , meaning that your gross profit 866.67 % . Saving where with 15 million could generate 866.67 % ? Fantastic is not it?
Yet ( again ) your shortfall of 15 million for the payment of contractors will charge you in the disbursement of the mortgage , meaning your capital 0 dollars! ! Ehmm which is a bit absurd . Nonetheless , you certainly will come out of capital , but the spirit is CAPITAL SHOULD NOT GREAT !
Easy Workflow
This workflow can be understood if you know who your stakeholders . You will be dealing with landlords , contractors, customers , partner banks , and bureaucracy . Actually already read most of the writings of the above . I was briefly as follows :
Landowners - Marketing - Contractor - Banking
With landlords , you must prepare a purchase commitment agreement ( notaril when needed ) . This is the first step . The second step is to market your product . You can market with brochures , advertisements in the mass media or mailing list . If there is an agreement with a buyer , you must prepare for the engagement agreement with the buyer / consumer .
Circuits in addition to the agreement with the consumer marketing is an advance billing , home design approval requirements and process mortgages ( home loans ) at banks .
When they are met , then you must invite contractors who will build . Agreement with the contractor also must be made . Usually contained in it is of working drawings , construction specifications , construction contract price , method of payment , the period of construction and development targets .
Once the house is completed 100 % , you can process the disbursement mortgage bank . This is where you must prepare for the legality of the consumer , ie the legality of home buying and selling process at the notary , as well IMB .
State Mission, Focus, and Working Smart
State mission is actually a sentence that stirred the first time that Think Big. Think big! Your objective must not only cease to sell 1 home instead. Only by selling 1 unit home ALONE will not necessarily make you be established.
So set your goals, for example, your goal is to earn passive income from the property. Really, it's not impossible. With 1 unit home advantage, you can buy one asset class homes RSS and you can get a passive income by renting out the house.
Or your goal as being the largest housing developer in your city. So make your small business this is a learning curve towards something that you aspire.
Or you want to earn passive income with the following property business networking. You just put your profits are in the property business networking, while engaged in operations that will certainly increase your ability to do business property. This goal is also not impossible.
This means you really have to focus and work smarter in order to state your mission that has aspired from the beginning will be realized.
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