How to source for Joint Venture Financing for your land in Kenya.
Financing construction for land in Kenya requires very good planning. With current interest rates for construction in the range of 17 to 22%, other methods of financing such a Joint venture become very attractive.
In Joint venture financing, all the land owner needs to give is their land, with zero amount of money input required from them. The financier then brings in the rest of the funds to construct then after the construction is complete, they share the profits at an agreed sharing ratio.
Packaging the land.
To attract financiers is not an easy task as it sounds. The land needs to be packaged in a very attractive way such that the pitch to a potential financier becomes successful.
Proper initial designs and sound feasibility report is needed to be undertaken by the land owner to be given to potential financiers. The land owner will need to work with an architect or quantity surveyor to come up with these documents. www.a4architect.com assists land owners to come up with these documents in a format that the potential financiers will be able to easily and quickly understand to make a prompt judgement.
Current construction costs, current sale price per foot for plinth area and return on investment are some of the easily picked out pieces of information that a financier will use to make their decision faster.
Type of project.
There are financiers who zone in on middle class mass housing, others look out for commercial shopping mall projects, others are in to hotel projects while others are into high rise high cost residentials. www.a4architect.com after advising the land owner based on their location of land on which is the best type of project that will bring the highest return on their investment, then approaches the financiers depending on the type of project.
Conclusion.
Targeting the financier based on the type of project that a land owner is envisaging helps to easily enable faster access into tapping joint venture finances for their project.
Architect Francis Gichuhi Kamau.
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