You have a passion for real estate, you know what people like and you are really good at managing?
Well, then this business tip is for you. Basically, this is what some developers do but you actually don’t need to be a builder.
The idea is this, you sell a land together with a project for a house and get the job to build it – ideally you already have planning permission. Make sure to do all your homework before, especially about local rules. Also, it is absolutely essential to get your maths right. It does not just involve the costs for the land, architect, lawyer and developer but probably involves many other fees here and there, so make sure you calculate with enough buffer to get enough profit for yourself.
The most complicated part would be the legal end of it. You have to make sure that all contracts, between you and the builder (if you are not a developer yourself) as well as between you and the buyer are bullet proof. Here you would state for example what finishes the house will have, how long until completed, what penalty applies if works are delayed etc.
Ready to start?
So here it goes:
- Find a suitable building plot
You can look up cheap land for sale, but make sure that the location is attractive for possible buyers.
- Get a project approved
Ask an architect to draw up a nice house that will suit your target audience. Ask the architect for some good 3D pictures that you can use for your advertising.
- Get a builder to give you a price and time frame for the needed works
- Ask a lawyer to prepare a sale contract you are comfortable with
- Advertise, sell and oversee the project until finished
Image by Peggy und Marco Lachmann-Anke from Pixabay
