1 Into 3 Subdivision (Bec & Justin Thomas)
1383m2, Collie, Western Australia
How do you complete a subdivision... without paying for the land upfront?
The truth is...
Some of the best development deals aren't just about finding the right site they're about structuring the deal the right way.
Most developers tie up hundreds of thousands of dollars in land before they even begin creating value. But with the right acquisition strategy, you can reduce your upfront capital, improve your cash flow, and give yourself a much better chance of making the numbers work.
At our next Property Developer Network Meetup, Justin and Bec Thomas will take you behind the scenes of a subdivision project where a creative acquisition strategy made all the difference in this month's Real Deal presentation.
By negotiating a delayed settlement and building a strong relationship with the vendor, they didn't have to pay for the land until settlement. Instead, they were able to fund the subdivision works along the way, while the vendor even arranged for the trees on the site to be removed saving both time and money.
But this project was far from smooth sailing.
Justin and Bec will share:
• How they structured a delayed settlement to minimise upfront capital
• Why building the right relationship with the vendor created unexpected opportunities
• The challenges of selling lots with virtually no comparable sales evidence
• How delays from Western Power, contractors and council impacted the project
• The funding pressures that forced them to raise private debt to complete the settlement
• The unexpected hurdles, including asbestos, changing regulations and vendor requirements
This is a genuine, behind-the-scenes case study that proves even a relatively small project can deliver some of the biggest lessons you'll ever learn.
If you're looking for smarter ways to structure development deals, reduce the amount of cash you need upfront, and hear the real story behind the challenges every developer faces, this is one Real Deal presentation you won't want to miss.