100% financing for your Construction Project in Kenya.
The usual traditional joint venture financing method has the owner receiving 20 to 25% of the built up property and the 75 to 80% of the remainder of the property going in to compensate joint venture financier for the cost of building and financing the project. In this new scenario, land owner still gets up to 25% of the property built up area for their own use to either resell or rent.
Financing Solution.
This solution is possible through a well planned financial arrangement whereby the land owner works with a4architect.com on the architectural building layout to come up with 4 maisonette type houses.
These 4 different houses are then given separate ownership through the sectional title process.
The land owner can now sell the 3 units and use the capital raised to construct the last remaining house from which land owner can now collect rental income for the rest of their life.
Advantages.
Advantages over this method compared to bank loan borrowing is that there is no risk of land owner losing their land like in the case of usual bank loan borrowing when the land owner defaults on the loan along the way due to various reasons.
Also, land owner doesn’t carry the risk associated with large construction financing borrowing since the other 3 houses will be constructed by the new buyers who will then use their preferred financing method, whether through personal savings or bank loan.
Another advantage of this method over the normal traditional type of Joint Venture financing is that the number of parties needed to complete the financing is greatly reduced to between land owner, a4architect.com and end use/house buyer . In the usual joint venture type, other parties such as financiers are also included, increasing the bureaucracy considerably.
This also helps to reduce risk of exposure to land owner since the and will not get charged to a bank like in the case of the usual joint venture financing.
The usual traditional joint venture methods also limits the land to be financed by only taking in large lands over 10 acres in size located in prime areas around the city. This method can be done with much smaller lands up to 1/8th acre in size, and the lands are preferably to be located in prime areas around the country.
Land owners, feel free to email info@a4architect.com for more details.
Architect Francis Gichuhi Kamau
0721410684
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