Joint Venture – 6 Townhouse Development Deal with Client

About The Client

    • A mortgage broker with a good business turnover, and wanting to leverage the services of an experienced property developer and investor to gain instant equity and grow his property portfolio. Currently have 5 cash flow investment properties.
    • Strategy: 6 Townhouse development. Old house on a large block of land overlooking the lake. Demolish the house and build 6-townhouses and sell all. Acquisition and construction costs share with the client and MPCA. MPCA provides the expertise and manages the project from acquisition to sales.
    • Profit Share: 50/50
    • Location: Lake Macquarie- LGA
    • Land size: 1669M2
    • Zoning: R2

Let’s talk numbers-

    • Asking price for the house + land: $570K
    • Offer & purchase price: $600K
    • Offered: $30K more due to multiple offers- Deal still profitable
    • Total Purchase costs, planning & construction: $2900Mil
    • Sale per townhouse: $650K X 6= $3900Mil
    • Profit before costs: $1000Mil or 34% Gross realization
    • Profit after all costs: $700K or 24% Net realization or $350K profit split

Asking price for the house + land: $570K

Offer & purchase price: $600K


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Unit 217 14 Lexington Drive, Bella Vista, NSW 2153

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