This week, Hilary and Bob discuss the ins and outs of joint ventures with landowners, highlighting the potential benefits for aspiring property developers who may have limited funds.
Recorded during a visit to Margaret River, Australia, this episode features insights from Bob, who shares his personal experiences and stories related to joint ventures.
Hilary and Bob also touch on their recent activities, including a development project in Perth and a casual meet-up for local property enthusiasts.
Episode Highlights:
Bob’s Tip of the Week [01:58]
Defining Joint Ventures with Landowners [02:56]
Importance of Proper Structuring and Legal Advice [04:48]
Valuing the Land in Joint Ventures [06:30]
Role of Valuers and Independent Arbitrators [08:05]
Challenges with Accountants and Lawyers [10:02]
Financing the Project Using Land Equity [11:18]
Handling Development Approval Costs [12:16]
Scenarios for Covering Approval Costs [14:10]
Involving Investors for Seed Capital [15:34]
Example of Using a Line of Credit [16:58]
Estimated Costs for Approvals [18:23]
Process After Obtaining Approvals [19:38]
Distribution of Profits and Fees [21:07]
Flexibility in Project Size [21:34]
Benefits of Multi-Stage Developments [22:41]
Popularity of Joint Ventures with Landowners [24:11]
Conclusion and Upcoming Events [24:51]
