Numbers are not good. Total costs come to about £1.25m as he says. Profit is about £250,000. That equates to a profit margin of 20%. From purchase until completion and refinance/sell it will be about 2 years. That means a profit margin of 10% per year. That is not a good project..... Additionally, they went for planning for 6 flats to start with, but only got 5, so suggests that they may have had to do a second planning application, meaning the whole project could be longer than 2 years. A profit margin of 20% for a developer is good but when you split that over 2+ years it is not a good investment. You would expect a much higher return given all the hassle of the planning permisson and extensive construction works.
love both of you and your journey's such great content this is inspirational to see from the both of you!
Ahmed is a fantastic investors. I’m glad you’ve enjoyed the content!
So happy to see you both 😍😍😍😍😍😍
Free Palestine
Numbers are not good. Total costs come to about £1.25m as he says. Profit is about £250,000. That equates to a profit margin of 20%. From purchase until completion and refinance/sell it will be about 2 years. That means a profit margin of 10% per year. That is not a good project.....
Additionally, they went for planning for 6 flats to start with, but only got 5, so suggests that they may have had to do a second planning application, meaning the whole project could be longer than 2 years.
A profit margin of 20% for a developer is good but when you split that over 2+ years it is not a good investment. You would expect a much higher return given all the hassle of the planning permisson and extensive construction works.
400 k lol
Make sure you got back up plan
Decent collaboration. Iv filled in your page too.