Kahla Gerard’s Post

TURN OFF-PLAN PROPERTIES INTO YOUR CASH COW! Are you looking for a smart way to invest in real estate without the hassle of construction or property management headaches? Do you want to know how some investors are quietly making serious profits in the real estate market? Welcome to the world of off-plan property investment, where your money grows while the hard work is done for you! Off-plan properties are the perfect solution for anyone seeking stress-free real estate investments with massive potential. Let me walk you through how off-plan properties can be your most lucrative investment yet. 📍Buy and Build: This involves purchasing a piece of land and constructing your dream property or a commercial building from scratch. 📍Buy to Sell (Flipping): You buy an undervalued property, invest in renovations, and sell it at a higher price. 📍Buy and Keep: This is the strategy of purchasing property to hold as a long-term investment. Now, let’s look at why off-plan properties might be the best of them all. Off-plan properties are real estate projects sold before they are completed. They allow investors to lock in a property at a lower price during the pre-construction phase and watch its value grow as the project progresses. ADVANTAGES OF OFF-PLAN PROPERTIES ✅One of the biggest advantages of buying off-plan is that you let the company build for you. ✅ Off-plan properties often come at lower initial prices, which means you can afford to buy more units. ✅ You could sell some of the units once they are completed for a substantial profit, or you could choose to keep units for rental income. WHAT TO CHECK BEFORE PURCHASING OFF-PLAN UNITS While off-plan properties offer numerous benefits, you must conduct thorough due diligence to ensure a smooth investment experience. Here's what you need to check: 🥇Title and Building Approval: Verify that the property has a clear title and approved building permits. This ensures the property is legally recognized and protects you from any legal disputes or construction issues down the road. 🥇Follow the Building Process: Although you won’t have to manage the build, it’s important to stay informed on the construction progress. Regular updates from the developer will give you peace of mind and help you assess the value growth. 🥇Pay for All Documentation: Make sure you complete all the necessary documentation upfront, including the contract of sale, building plans, and transfer of ownership documents. This will ensure that the ownership transfer is seamless and you have no legal issues once the property is completed. Ready to Invest? Reach Out Now! Let’s discuss how you can start your off-plan property journey with ease and confidence. SEND me a dm now

Choosing between investing in under-construction property and ready-to-move-in property depends on various factors, including financial goals, risk tolerance, and investment horizon. Here are some key considerations for each option: Under-Construction Property Pros: 1. Lower Cost: Often, under-construction properties are cheaper than ready-to-move-in properties. 2. Higher Appreciation Potential: There is a possibility of higher capital appreciation once the project is completed. 3. Flexible Payment Plans: Developers usually offer flexible payment plans during the construction phase. Cons: 1. Risk of Delays: Construction delays are common and can postpone the possession date. 2. Project Risk: The project may face issues like regulatory approvals, financial problems of the developer, or construction halts. 3. No Immediate Income: You cannot generate rental income until the property is completed and ready to occupy. Ready-to-Move-In Property Pros: 1. Immediate Possession: You can take possession of the property immediately after purchase. 2. Rental Income: You can start earning rental income right away if you plan to rent out the property. 3. Lower Risk: The risks associated with construction delays and project completion are eliminated. Cons: 1. Higher Cost: Ready-to-move-in properties usually come at a premium compared to under-construction properties. 2. Limited Customization: There’s limited scope for customization as the property is already completed. 3. Lower Appreciation Potential: The potential for capital appreciation may be lower compared to an under-construction property. Decision Factors 1. Financial Stability: If you have the financial stability to wait and take on potential risks, under-construction properties can offer higher returns. 2. Risk Tolerance: If you have a low risk tolerance and prefer certainty, a ready-to-move-in property is a safer bet. 3. Investment Horizon: For a longer investment horizon, under-construction properties might be suitable. For shorter terms or immediate needs, ready-to-move properties are better. 4. Rental Income: If generating rental income is a priority, a ready-to-move-in property is the best option. 5. Market Conditions: Consider the real estate market conditions. In a rising market, under-construction properties may offer better returns, while in a stagnant or declining market, ready-to-move properties could be safer. Evaluate these factors in the context of your personal financial situation and investment goals to make an informed decision. Contact F1 Realtors +91-9579792277

How profitable is property development? I’m often asked the question, particularly by non-property people, how profitable is property development. When it comes to making money from property, one strategy stands head and shoulders above all others – property development. That said, there are risks and those need to be understood and mitigated as well as possible. I don’t consider renovating as property development. For me, it starts with a two-lot subdivision. The reason is we aren’t just adding value we are creating more ie. One lot becomes two lots. So how much could you potentially make from a one into two lot subdivision? The big variation is location which has a large effect on pricing. A two-lot subdivision at Potts Point would be worth more than a two-lot subdivision in Birdsville. Also, the industry-standard profit margin for small projects is lower than for larger projects. This margin is calculated as the profit as a percentage of the total costs. The margin on a four-townhouse project might become acceptable from 18% – 20% upwards but on a two-lot subdivision, it might become acceptable from 12% – 14% upwards. The reason is that the smaller project is quicker to develop with less financial risk. On the small project, it might be considerably faster to get a development approval and the only construction could be as little as connecting new services. Also, borrowings are less in dollar terms, and cheaper finance is available. With the larger project, the development approval typically takes longer, the construction takes longer, the financial risk is higher, and finance is more expensive. Here is a quick thumb rule for calculating the projected profit on a project showing a 20% margin on cost. If you know what the product (lot, townhouse, or apartment) would sell for multiply that selling price by 16.67%. For example, a townhouse that would sell for $800,000 should show a development profit of $133,000. When you consider that you can gear the borrowings 4 times (25% equity, 75% debt), that gives you an 80% return on funds invested. It’s not hard to see why property development reigns supreme in the wealth-creation property world. To chat further with us about Property Development, click here: https://lnkd.in/gqp8W75M

Investing in property like a pro requires careful planning and strategy. Here are essential steps: 1. Types of Investments: Understand various property types, from residential to commercial, and how they fit your strategy. 2. Investment Goals: Define your objectives - capital growth or income, property type, and selling timeline. 3. Expert Advice: Seek guidance from property sourcers, mortgage brokers, advisors, and accountants to navigate complexities. 4. Finance Pre-approval: Secure finance approval before viewing properties for confidence and better positioning. 5. Investment Strategy: Develop a detailed strategy aligning goals, market insights, and your financial situation. 6. Realistic Expectations: Acknowledge that property values fluctuate, with no guaranteed profits. 7. Market Research: Understand the target market's opportunities and challenges before investing. 8. Rental Demand: Investigate rental demand to assess potential for finding tenants. 9. Local Area Analysis: Consider the local economy, schools, transport, and amenities' impact on property values and rents. 10. Due Diligence: Thoroughly research the property, market, and rental income potential. Get inspections and insurance. 11. ROI Calculation: Use a property investment calculator to estimate potential returns. 12. Property Sourcers: Consider using property sourcing services to save time and get better deals. 13. Contingency Fund: Allocate 10%-15% for unforeseen costs, as some issues may not be apparent until renovation. 14. Long-term Commitment: Understand that property investment is a long-term commitment, considering rental income, capital growth, and maintenance costs. If you are looking to invest in property in Portsmouth please contact me, I can save you time and money ✅

WHAT IS AN OFF-PLAN PROPERTY? In Real Estate, the term Off-plan property means • When a property is still undergoing construction especially from the scratch (foundation level), it's called offplan; while when a project/property has been erected and finished, it's called a standing house. • No physical structure yet other than the plans being available. When buying property for investment, the two key things to look out for are, capital gain and high returns and one way to get both is by purchasing off-plan. However, there are still some misconceptions about investing in a00-plan real estate. I will be explaining how and why you should invest in off plan real estate, and also things to consider before investing. FREQUENTLY ASKED QUESTIONS ABOUT BUYING PROPERTY OFF-PLAN QN.(clients): Why do you advise that I buy an off-plan property? ANSWER(consultant): Often times, for investors who consult with me before investing in real estate, I say to them; except you’re in a hurry to move into your home or start getting ROI (Returns on investment), ALWAYS BUY OFF-PLAN. THESE ARE SOME - OUT OF THE MANY REASONS YOU SHOULD BUY PROPERTIES ON OFF-PLAN BASIS 1) Capital Gain: When you buy off-plan, you are most definitely going to watch your investment grow in value as the construction progresses. For instance, you buy a property for 30 million naira off-plan, in 6months you would be surprised that same property could be worth almost twice the amount you paid for it off-plan. 2) Flexible payment plans: More often than not, off-plan property purchase comes with the added benefit of staged payment structure which could see a buyer spread payment over a period without a significantly large deposit. 3) High resell value: Some investors may choose to put their property up for sale and sell at a higher price than they purchased it. For investors who want to make quick profit on their investment, this can be a good strategy. The most profit comes from owning the property long-term and renting it out. 4) Internal Modifications: Some clients who are not comfortable with the floor plan of the house he or she bought have room for internal modifications, they can present theirs and we deliver. Their comfort is our utmost concern and priority. HOW TO INVEST IN OFF-PLAN PROPERTIES: The following are the very important things to do before investing in off-plan property; 1. Get a credible property consultant: It is important for you as an investor to find a professional that understands the business of real estate well and can advise on what type of property to invest in off-plan. Having a consultant saves you the headache of making the wrong investment decisions..... CONT'D ON THE COMMENT SESSION 👇

Imagine buying a property under construction, but instead of full upfront payment, you disburse funds incrementally at each milestone. This is the strategic advantage of a Construction-Linked Payment Plan (CLP)—a phased model now in the limelight for optimizing cash flow and mitigating risk, making it a favored choice for savvy real estate investors. With a CLP, payments align with construction milestones—e.g., 10% at reservation, 20% at structural completion and so on—ensuring funds are committed gradually, reducing upfront cash needs and risk of overexposure to delays. But why are CLPs emerging as a strategy of choice, particularly amongst those with a view to maximise rental income through an Airbnb or traditional rental? Here’s an economic perspective:- 1. Efficient Cash Flow Management A CLP allows for more cash to stay on the sidelines of construction, reserving capital allocation to other investments in the early stages. Financial decision making in an environment of high interest rates, inflation and uncertainty requires managing opportunity costs as well as liquidity and that is exactly what the deferral of larger payments allows you to do. 2. Lower Cost of Capital It enables you to reduce your cost of capital by allowing you draw funds in tranches, instead of paying interest on the entire loan at once. This disbursement approach matches the climate surrounding capital markets with interest rates right now. When you borrow only what you need, your debt servicing ratio is optimized and this can save considerably on financing costs – which in effect delivers a much improved bottom line net return. 3. Risk Mitigation and Developer Accountability Pay for performance by rewarding developers only upon reaching construction milestones aligned with your investment goals. This structure prevents moral hazard, ensuring developers remain incentivized to meet deadlines. By linking payments to specific achievements, a CLP aligns with risk-sharing principles, acting as an insurance policy in a volatile market. 4. High Rental Yield Potential and Airbnb Flexibility With tourism booming in India and platforms like Airbnb driving demand, properties designed for short-term stays can yield higher returns. A CLP lets you strategically position rentals for strong occupancy and premium rates in markets with high price elasticity, maximizing income in response to demand shifts. 5. Inflation Hedge and Capital Appreciation Conventional wisdom holds true that real estate is a hedge against inflation, with property values and rents tending to rise over time. A CLP helps you lock down today’s price for that particular property, making it easier to capitalize on capital gains and rising rents as the market continues to expand — an important factor of course in India where so many regions are becoming increasingly urbanized. Whether you’re eyeing that Airbnb income or just want to own property without the upfront hassle, CLP gives you the edge!

Smart Commercial Real Estate Investing: A Simple Guide Interested in investing in commercial real estate? Whether you're new or experienced, being smart about it is key. Commercial real estate can be profitable, but it also has risks. Here's what you need to know before you invest: 1. Check the Market: Look at the area where the property is. Is it growing? Do people need commercial spaces there? Understanding this helps you see if your investment will pay off. 2. Plan Your Exit: Know how you'll sell or rent out the property later. Are there already buyers or renters interested? Having a plan is key. 3. Price Check: Make sure the property isn't too expensive for what it offers. Paying too much can hurt your profits. 4. Know the Builders: See if the construction company has a good reputation. Do they finish projects on time and within budget? This matters for your investment's success. 5. Check Labor: Find out if the builders hire their workers or get them from outside. Outsourced workers can lead to delays and problems. 6. Look at the Market: See if the market is doing well or not. This affects how much you can charge for rent and how easy it is to sell later. 7. Manage Risks: Think about what could go wrong and how you'll deal with it. Being ready for problems is important. Investing in commercial real estate is a serious business. Do your research and be prepared before you put your money in. It's suggested to gather at least 50 data points to make a well-informed decision. For example, you could look at things like the property's location, rental rates in the area, construction costs, and market trends.

𝐖𝐑𝐅 𝐋𝐚𝐧𝐝𝐬 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐭𝐨 𝐀𝐫𝐫𝐚𝐧𝐠𝐞 $𝟑𝟎 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐃𝐞𝐛𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 We are thrilled to announce that Western Realty Finance has secured an agreement to broker financing for a centrally located Palm Springs Apartment project, within walking distance of shops and restaurants! 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 138 residential market-rate apartment units across multiple buildings, including a leasing office and a tenant gym facility. 𝐊𝐞𝐲 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬: Total Loan Amount: $30,546,886 Phases: Phase 1: 74 units in Buildings 1-5 Phase 2: 64 units in Buildings 6-9 Stabilized Value: $53,237,873 Loan to Cost (LTC): 79.1% Loan to Value (LTV): 57.5% 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: Palm Springs Apartments is a high-quality mixed-use residential and commercial development designed to leverage the strategic location and zoning flexibility of Palm Springs. Catering to both long-term rentals and short-term hotel stays, this project promises robust financial returns and significant community benefits. 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫 𝐏𝐫𝐨𝐟𝐢𝐥𝐞 Experienced Real Estate Developer: Bringing extensive experience in real estate development and construction, ensuring the economic viability and structural integrity of all projects. Strategic Real Estate Investor: Known for increasing property values through strategic renovation and repositioning, with a well-defined, repeatable investment process. Community Impact: This modern new apartment project will enhance the vibrant community of Palm Springs by providing affordablel housing and contributing to the local economy and urban development. Western Realty Finance: Your trusted partner in arranging and securing financing for premier development projects. We are proud to contribute to the growth and revitalization of communities through strategic financial solutions. Thank you to our correspondent lending partners Builders Capital for their continued support on this and many of our other construction finance project needs. ____________________________________ 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐑𝐞𝐚𝐥𝐭𝐲 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 works closely with experienced residential developers to arrange financing from $10MM - $200MM, for solid for-sale and for-rent projects. For more information contact David Van Waldick 760-672-0146 / dave@wrfco.com, or James Carenza, 760-519-6189 / jim@wrfco.com. Or visit our web site: https://lnkd.in/gr5QfQF3 #ConstructionFinance #HousingFinance #HousingFinance #affordablehousing

Investing in real estate requires a solid understanding of various fundamental principles. Here are some basic fundamentals: 1. Location: The location of a property is crucial. It determines the demand, value, and rental potential. Consider factors like proximity to amenities, schools, transportation, and future development plans. 2. Market Research: Understand the current market conditions. Analyze trends, property values, rental rates, and economic factors influencing the real estate market. 3. Financing and Budgeting: Assess your financial situation. Determine how much you can afford to invest and secure financing. Consider mortgage options, interest rates, and loan terms. 4. Property Type: Decide on the type of property you want to invest in—residential, commercial, industrial, or land. Each has its own set of considerations, risks, and returns. 5. Due Diligence: Conduct thorough inspections and assessments of the property. Check for legal issues, property conditions, and potential maintenance costs. 6. Investment Strategy: Define your investment goals. Are you looking for long-term appreciation, rental income, or a quick flip? Your strategy will influence your property choice and management approach. 7. Risk Management: Be aware of the risks involved in real estate investing, such as market fluctuations, tenant issues, and maintenance costs. Have a plan to mitigate these risks. 8. Legal Considerations: Understand the legal aspects of real estate transactions, including contracts, zoning laws, and landlord-tenant laws. Consider consulting with a real estate attorney. 9. Tax Implications: Be aware of the tax implications of real estate investing, including property taxes, capital gains taxes, and potential deductions. Consulting a tax professional can be beneficial. 10. Exit Strategy: Have a clear exit strategy. Whether it's selling the property, refinancing, or holding for the long term, knowing your exit options will help you make informed decisions. By focusing on these fundamentals, you can make more informed and strategic decisions in real estate investment.

Choosing between investing in under-construction property and ready-to-move-in property depends on various factors, including financial goals, risk tolerance, and investment horizon. Here are some key considerations for each option: Under-Construction Property Pros: 1. Lower Cost: Often, under-construction properties are cheaper than ready-to-move-in properties. 2. Higher Appreciation Potential: There is a possibility of higher capital appreciation once the project is completed. 3. Flexible Payment Plans: Developers usually offer flexible payment plans during the construction phase. Cons: 1. Risk of Delays: Construction delays are common and can postpone the possession date. 2. Project Risk: The project may face issues like regulatory approvals, financial problems of the developer, or construction halts. 3. No Immediate Income: You cannot generate rental income until the property is completed and ready to occupy. Ready-to-Move-In Property Pros: 1. Immediate Possession: You can take possession of the property immediately after purchase. 2. Rental Income: You can start earning rental income right away if you plan to rent out the property. 3. Lower Risk: The risks associated with construction delays and project completion are eliminated. Cons: 1. Higher Cost: Ready-to-move-in properties usually come at a premium compared to under-construction properties. 2. Limited Customization: There’s limited scope for customization as the property is already completed. 3. Lower Appreciation Potential: The potential for capital appreciation may be lower compared to an under-construction property. Decision Factors 1. Financial Stability: If you have the financial stability to wait and take on potential risks, under-construction properties can offer higher returns. 2. Risk Tolerance: If you have a low risk tolerance and prefer certainty, a ready-to-move-in property is a safer bet. 3. Investment Horizon: For a longer investment horizon, under-construction properties might be suitable. For shorter terms or immediate needs, ready-to-move properties are better. 4. Rental Income: If generating rental income is a priority, a ready-to-move-in property is the best option. 5. Market Conditions: Consider the real estate market conditions. In a rising market, under-construction properties may offer better returns, while in a stagnant or declining market, ready-to-move properties could be safer. Evaluate these factors in the context of your personal financial situation and investment goals to make an informed decision. Contact Pal Properties - 8208656914 The Company You Can Trust.