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Joint Venture in houses construction

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Lolest!		#21 Posted : Friday, February 28, 2014 2:07:16 PM
Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma		the deal wrote: Lolest! wrote: @deal, I am thinking joint venture too for a relative. Do you have issues with ancestral land with other developments on the same parcel? Ancestral land is always tricky but A. where is the land located? B. what kind of developments are on the erven? On the legal aspect... 1. what kind of title deed is this? is it a Master title? 2. Is your relatives name on the master title? if so is the parcel well subdivided? i.e relative A owns from A to B etc A. In Kiambu county 15km from city center B. Family bungalow, leavin space that's sufficient for flats Land not yet changed names to my relative after he inherited how do you share the profits?
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the deal		#22 Posted : Friday, February 28, 2014 4:39:13 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		@Pirate @Lolest the JV will be in a form of a partnership...my entity will be the money/operating partner while you guys will be the land partners...A lawyer will draft the partnership agreement detailing duration, profit sharing & responsibilities etc Now lemme give an example Suppose @pirates contribution is the land valued at Ksh3.5mn and my entity puts in Ksh15mn for a total investment of Ksh18.5mn (land + cash) and then we do a project worth Ksh40mn we can decide to share the proceeds according to what each partner contributed... Now in this case...@pirates share of proceeds will be 19% or Ksh7.6mn (3.5/18.5=19%) The Ksh7.6mn will represent a cool 117% return on his initial investment So we all walk away happy... The above arrangement would have helped me avoid a crazy land search and buying experience while I would have helped you unlock the value of your land faster... Now if you guys are serious my email is davismika@contrarianinvestingkenya.info Serious emails only.
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justKiwi		#23 Posted : Friday, February 28, 2014 5:30:33 PM
Rank: New-farer Joined: 8/25/2012 Posts: 32		the deal wrote: @Pirate @Lolest the JV will be in a form of a partnership...my entity will be the money/operating partner while you guys will be the land partners...A lawyer will draft the partnership agreement detailing duration, profit sharing & responsibilities etc Now lemme give an example Suppose @pirates contribution is the land valued at Ksh3.5mn and my entity puts in Ksh15mn for a total investment of Ksh18.5mn (land + cash) and then we do a project worth Ksh40mn we can decide to share the proceeds according to what each partner contributed... Now in this case...@pirates share of proceeds will be 19% or Ksh7.6mn (3.5/18.5=19%) The Ksh7.6mn will represent a cool 117% return on his initial investment So we all walk away happy... The above arrangement would have helped me avoid a crazy land search and buying experience while I would have helped you unlock the value of your land faster... Now if you guys are serious my email is davismika@contrarianinvestingkenya.info Serious emails only. It's like you did your maths with rental apartment building. What if the plots are in residential area? If so, highest fetched for a 4bdr maisonette in that side of town is 13m. Spend 10m to develop 2 maisonettes, sell at 26m. Using ur formula you spend 3.5m+10m = 13.5m Sale at 13m x 2 = 26m Profit 23m - 13.5m = 12.5m Your take 19.24m and your profit 19.24-10 = 9.24m Landlord 26m-19.24 = 6.76m eqv to 3.26m more I think not bad.
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the deal		#24 Posted : Friday, February 28, 2014 8:29:59 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		justKiwi wrote: the deal wrote: @Pirate @Lolest the JV will be in a form of a partnership...my entity will be the money/operating partner while you guys will be the land partners...A lawyer will draft the partnership agreement detailing duration, profit sharing & responsibilities etc Now lemme give an example Suppose @pirates contribution is the land valued at Ksh3.5mn and my entity puts in Ksh15mn for a total investment of Ksh18.5mn (land + cash) and then we do a project worth Ksh40mn we can decide to share the proceeds according to what each partner contributed... Now in this case...@pirates share of proceeds will be 19% or Ksh7.6mn (3.5/18.5=19%) The Ksh7.6mn will represent a cool 117% return on his initial investment So we all walk away happy... The above arrangement would have helped me avoid a crazy land search and buying experience while I would have helped you unlock the value of your land faster... Now if you guys are serious my email is davismika@contrarianinvestingkenya.info Serious emails only. It's like you did your maths with rental apartment building. What if the plots are in residential area? If so, highest fetched for a 4bdr maisonette in that side of town is 13m. Spend 10m to develop 2 maisonettes, sell at 26m. Using ur formula you spend 3.5m+10m = 13.5m Sale at 13m x 2 = 26m Profit 23m - 13.5m = 12.5m Your take 19.24m and your profit 19.24-10 = 9.24m Landlord 26m-19.24 = 6.76m eqv to 3.26m more I think not bad. You are smart @justkiwi
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