Start up cash

[thelock]

As I mentioned in the legal section, I am looking to go into the property development market with my business partner and am just doing the background work right now. I would be very greatful if someone could advise me how much we should be looking to initially invest in the business to get us off the grownd?

Really never done the business side of thing before as I am just use to doing the building work so really could use a lot of help and direction.

Cheers

 

[Rob Holmes]

Hey try these..

http://www.insidetrack.co.uk/

Rob

 

[thelock]

cheers

 

[Jayne]

Business Link helps new starters, give them a ring, they are very good

Jayne

 

[Rob]

I presume that because you are already in the trade you will have all the required tools etc. Your major cost is going to be the purchase and renovation cost of your first property.

If you don't have all the cash necessary then obviously you will have to resort to Bank finance. Is this what your question relates to?

For property developement, at best you will have to put up 30-40% of the cost of the project. Your cash stake will depend on your experience in this sector. If this is your first then the Bank will look for a higher contribution.

If you are depending on finance then your biggest problem will be how quickly you can offload the completed property in order to prevent accumulating interest eating into your profit. You therefore have to very carefully select your property. You may think it's great but will it sell on fast? This is essential for your first few deals so you can quickly build up your cash for re-investment.

As regards other costs to set up then it depends on your circumstances - is this going to be your sole source of income? If so how are you going to cover your costs during the renovation period?

These sort of issues have to be addressed in your Business Plan, which you will have to prepare if you are approaching a Bank for finance.

 

[Babylon]

Hey try these..



Rob

Could you please explain the reasons for your recomendation of Inside Track?

Kind regards,