All Forum Posts by: Ungwang Boiteto

I can’t seem to post a picture of the design from the BP app

Hey BP folks! I have project I want to develop in my home country of Botswana, Africa. I’m an Architect based in Johannesburg. I will convert units from meters to feet. And currency from Rands to USD. You might just realize how relatively “cheap” things are here. The Property I have is a 12917 sq ft (1200 sqm) 99x142 ft (30x40m) undeveloped land in a medium prime residential area. Our government has a system of giving citizens land through a system of applications. My mother applied for land in the 1980’s and would like to give it to me. In order for me to transfer the lease to my name I have to build a 300 sq ft structure on the property so that she is not transferring undeveloped land to me (a policy to make sure people live and build on the land and not just sell after receiving it). I would also like to build a perimeter wall at the same time. Those structures will have to be built out of pocket as I can not get finance for a title deed that is not in my name. Then later get financing for a multi family development I would like to place on it. Okay. Now that we have the long intro out of the way. Here’s my question: •I have designed a 6 unit, 1 bedroom, single storey development. • I am considering going double storey however I fear that I will lose the comfort and “family friendly” environment single storey allows. • will the intangible value of a single storey comfortable environment surpass the rent of 3-4 more units? • rough estimates say the single storey development could cost around $132 650.00. I could get financing from a local business development bank at 7,5% interest. So the loan will total $142 557.23. Meaning a minimum $792 installment. •I will rent out the units at $285 pm (lol yes African prices) so $ 1710 monthly rent. Leaving $ 918 after paying installment. I’ve attached an image of the plan I have designed so far. It could be blurry. Should I go single or double storey? What other advice could you give with the information I’ve provided? Looking forward to your responses!

Hey BP folks!

What is a great blog to follow about flips with good pictures and stories, maybe even a few insights into the deals and finance?

Thank you very much Peter Mckernan for the insight that's exactly what I was asking about. Arpan Patel my next question was how exactly I should create a contract or agreement for a deal. What you mentioned promissory notes and operating contracts is exactly what I needed to hear.

Hey BP folks!

What is the best way to provide security to investors on a privately funded project? Should I have a deal drafted by a lawyer that guarantees that funds will be paid to creditors once the sale of the property has been completed?

I'm asking from the perspective of someone who would like to have investors finance a flip. How do I assure them security and a return on investment when they don't know me from a bar of soap?

Thanks Mark Nolan I read it over the December holidays. Was fantastic to learn so much.

Thanks Peter Mckernan . I wanted to know specifically what I would have to pay for before work on the deal even starts, i.e. Transfer costs. I do not have a lot of money and will probably have to have up to 90% of my first deal financed by other investors. I want to know which aspects of a deal besides purchase and renovation costs, a lender would typically not be prepared to pay for that I should save up for? I hope this makes sense

It's great that you had fun. Always good to have constructive fun 😃

Hey!

I'm Uks, a 29 year old architect in Namibia, Africa. Because of my technical knowledge and the fact that I have designed and supervised construction of a few houses as a side hustle, I want to enter property investment through flipping.

Aside from the purchase price and possibly flipping costs which can be lent from hard money, bank or private lenders. What costs should I prepare to pay for out of pocket?

Hey! I'm Uks, a 29 year old architect in Namibia, Africa. About a year ago I became really frustrated with presenting designs to a major shopping centre developer and not understanding the financial terminology they would use during meetings. It made me feel powerless because at the end of the day I am just another cog in the wheel who has no understanding of the world of finance and wealth creation around me. So I embarked on a journey to learn about economics and finance over the past year and I see a future for myself in real estate investment, particularly in refabs and development. What's the best starting point for me with regards to property investment? I have a lot of experience on the technical side of property but very little knowledge of cost projections and financial management. I'm willing to spend another year learning and building savings before investing in my first property. What are the costs I should expect to incur before approaching investors for my first deal?