Throughout this blog, I have been nothing but honest with you. The calculation example used is just a simplified possibility of what you may gain if everything goes smoothly.
However, the first time you try Property Samba, it may turn out that the most you can get from the project itself is half an apartment or three-fourths of it.
If you and the developer reach an agreement to share an apartment, then the best solution is to sell the apartment and use the investment for the next Property Samba Project.
This is the basic variation of doing business.
If you want, you can use the money from various projects and buy yourself an apartment in some other area of town, or use them to finance your own business.
However, the other variation of Property Samba is much more interesting.
Your efforts for the initial Property Samba Project may be rewarded with half or three-fourths of a single apartment. But there could also be projects in which you will end up with more than one apartment. You and the other owner of the apartment will agree to sell it, and then you will use the money to upgrade your role in the next project.
Another variation of Property Samba is making a business proposition to the owner/owners of a large residential lot with potential for building several residential houses on the lot.
The same strategy can be used in this business endeavor, as well: you will offer the owner/owners of the large residential lot a certain number of houses, the developer will also get a pre-arranged number of houses, and, most importantly, you will also get half or maybe an entire house out of this deal.
All of the parties in the deal are compensated with real estate properties instead of cash.
You will perform the feasibility study, do all the necessary research, and make your way to getting a completely new house, without any money or investment.
However, please make sure that the residential lot you are interested in has building permits, or find out if these necessary permits can be obtained at all.
Additionally, you might want to check the land's use restrictions to ensure you can use the site and build multiple houses on the residential lot. Restrictive agreements, HOA rules, historic districts and environmental conditions like wetlands are all factors that affect the use of the property.
Once you get the green light regarding all of the building restrictions, start implementing the three steps of your very own Property Samba Project.
Another variation of Property Samba is finding a building lot where you can build offices.
The same strategy can be applied here: you will check for permits that apply to "what use" may be made of land and/or buildings, what may be constructed and where, as well as restrictions on minimum/maximum size, height, setbacks, etc.
You will offer the owner/owners of the lot a few offices, and the developer will also be compensated in offices instead of cash, and you will make sure that you get one or maybe more offices out of the deal.
My favorite Property Samba variation is finding lots with the potential for building/renovating vacation resorts/apartments.
You will find a lot at a popular tourist location, and you will offer this very same deal to the owner/owners of the apartment.
It can be a winter ski resort, or even better, summer vacation apartments, so you can finally have your very own little place under the sun.
You know the drill: the owners get a few apartments, the developer gets a few apartment, and your efforts should be rewarded with an apartment bathed in sun and the fresh sea breeze.
However, the first time you try Property Samba, it may turn out that the most you can get from the project itself is half an apartment or three-fourths of it.
If you and the developer reach an agreement to share an apartment, then the best solution is to sell the apartment and use the investment for the next Property Samba Project.
This is the basic variation of doing business.
If you want, you can use the money from various projects and buy yourself an apartment in some other area of town, or use them to finance your own business.
However, the other variation of Property Samba is much more interesting.
Your efforts for the initial Property Samba Project may be rewarded with half or three-fourths of a single apartment. But there could also be projects in which you will end up with more than one apartment. You and the other owner of the apartment will agree to sell it, and then you will use the money to upgrade your role in the next project.
Another variation of Property Samba is making a business proposition to the owner/owners of a large residential lot with potential for building several residential houses on the lot.
The same strategy can be used in this business endeavor, as well: you will offer the owner/owners of the large residential lot a certain number of houses, the developer will also get a pre-arranged number of houses, and, most importantly, you will also get half or maybe an entire house out of this deal.
All of the parties in the deal are compensated with real estate properties instead of cash.
You will perform the feasibility study, do all the necessary research, and make your way to getting a completely new house, without any money or investment.
However, please make sure that the residential lot you are interested in has building permits, or find out if these necessary permits can be obtained at all.
Additionally, you might want to check the land's use restrictions to ensure you can use the site and build multiple houses on the residential lot. Restrictive agreements, HOA rules, historic districts and environmental conditions like wetlands are all factors that affect the use of the property.
Once you get the green light regarding all of the building restrictions, start implementing the three steps of your very own Property Samba Project.
Another variation of Property Samba is finding a building lot where you can build offices.
The same strategy can be applied here: you will check for permits that apply to "what use" may be made of land and/or buildings, what may be constructed and where, as well as restrictions on minimum/maximum size, height, setbacks, etc.
You will offer the owner/owners of the lot a few offices, and the developer will also be compensated in offices instead of cash, and you will make sure that you get one or maybe more offices out of the deal.
My favorite Property Samba variation is finding lots with the potential for building/renovating vacation resorts/apartments.
You will find a lot at a popular tourist location, and you will offer this very same deal to the owner/owners of the apartment.
It can be a winter ski resort, or even better, summer vacation apartments, so you can finally have your very own little place under the sun.
You know the drill: the owners get a few apartments, the developer gets a few apartment, and your efforts should be rewarded with an apartment bathed in sun and the fresh sea breeze.