Options Idea

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Options Idea

    Is this a feasible business idea.

    Find suitable sites ie. land/ warehouses

    Take out an option on the property, if the landlord agrees.

    ie. agree to buy at a slight premium to market value, with a 6 month deadline

    Within this period, ill attempt to gain planning permission for numerous flats

    Should planning be given, i exercise my option and either re develop the site or sell on to a builder/ developer

    Good idea? Does anyone have experience in this on LL??

    Thanks

    #2
    Originally posted by WarwickGrad View Post
    Is this a feasible business idea.

    Find suitable sites ie. land/ warehouses

    Take out an option on the property, if the landlord agrees.

    ie. agree to buy at a slight premium to market value, with a 6 month deadline

    Within this period, ill attempt to gain planning permission for numerous flats

    Should planning be given, i exercise my option and either re develop the site or sell on to a builder/ developer

    Good idea? Does anyone have experience in this on LL??

    Thanks
    Why would anyone tie themselves down for a 'slight' premium which may not materialise vs a huge gain for you with no downside apart from a little effort wasted?

    Usually in these situations you'd need:

    a - To share the potential upside, which - with no gain for LL if you achieve nothing - might mean 20-50% of the value gain.
    b - Offer a non-returnable option fee.

    LL has to be compensated for the restriction you are putting on them and/or for the reward you may be creating off their back.

    ML
    Refer Mad Regulators to Arkell vs Pressdram.

    Comment


      #3
      Yes thats what i meant by an option, a non refundable one - in order to incentivise the LL - a % of the upside is also a good idea yes, thanks

      Does anyone do this on this site?

      Comment


        #4
        Originally posted by WarwickGrad View Post
        Yes thats what i meant by an option, a non refundable one - in order to incentivise the LL - a % of the upside is also a good idea yes, thanks

        Does anyone do this on this site?
        Unless I've missed something, isn't this just a totally normal way of doing things that happens everyday and that an estate agent or surveyor in any town in the country can talk about?

        ML
        Refer Mad Regulators to Arkell vs Pressdram.

        Comment


          #5
          You are describing what property development companies do on a regular basis.
          The 6 months to gain a planning permission is a bit optimistic though.

          Comment

          Latest Activity

          Collapse

          Working...
          X