Lowyat.NET: Latest topics by ideoteque

How to Find a Private Money Lender

ideoteque — Sun, 03 Mar 2013 16:24:17 +0800

Hi,

I have a piece of land that I want to develop for the purpose of generating profit out of it. The problem is, I do not have sufficient fund nor I have big pay check to apply for loan this size. Therefore, I decided to look for an investor to fund this project of mine which costs about RM1mil. Me and my architect have a few names that we wanted to approach for this project. Now we are in the midst of preparing brochures and collecting info before approaching the potential payee.

Does anyone here have done such thing? I heard people with bigger land that have done JV with contractor to develop units of residential houses. In return, they contra you with one or two units without having to fork out anything for the construction. Pretty good deal IMO. But in my case, the land is only 12,000 sq ft. Architect and I have come up with some interesting design for this project. Something different.

Question: Normally, what are the contract between the owner and investor in terms of profit sharing? What is the safe ROI should be like for investor to feel comfortable?

Thanks in advance.
Cheers.
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Below is some of the questions that I found on the net that investors might ask you before locking the deal.

“Am I going to get my money back?”

This is the number one question that private lenders want to know when approached. If they do not feel like they can trust you enough to know that they will get their money back, they will never invest with you. Essentially they are asking themselves if they trust you to do what you say you are going to do.

Investors invest with people they know, like, and trust. Potential investors have all heard the horror stories; at this point they are judging your ability to deliver, and they will not likely give you money until they deem that you’re trustworthy.

“What’s in it for me?”

If you have established trust, the next thing potential investors want to know is how they will benefit. Many people approach potential lenders with the wrong mindset, and tell them all about what the lender’s money will do to help their business. However, investors are concerned about what is in it for them, and you must address that up front.

“What are my risks?”

Every investment has risks and private lenders want to know, if things go badly what is their downside? Will they lose all the money they invested, or just part of it? Is there a chance they could risk even more than they put into that investment? A realistic investor knows that there are things that could affect any real estate investment’s outcome.

They want to know if you understand them and are prepared, and that you have done everything you can to limit their risks. They want to know that you are realistic with your projections, and that they aren’t going to get hung out to dry when you encounter difficulties.

“How is my investment secured?”

If you are investing in single-family homes, is the investment secured by a first position on the mortgage, title insurance, and hazard insurance? If it is an equity partnership, how is it secured? Is it protected by the cash flow it generates, by hazard insurance, etc.?

“Do you have a plan and is it realistic?”

Before potential investors will invest with you, they want to know if you have a plan, if you’ve done this before, and have you thought it through or are you flying by the seat of your pants with their money? You must have a plan and it must be written down. You might think this is a “no-brainer” and that everyone has a plan before they approach potential lenders. However, I’ve seen it over and over again: people approach potential investors and they have a vision, but lack a step by step plan for achieving their investment goals.

They want to know that you’ve done this type of investment before or if they are going to be a part of a new experiment. This can be one of the biggest hurdles for new investors to overcome. But if you can show experience on your team (notice I didn’t say it had to be you alone) and have a written down, well thought out plan, you will greatly increase your odds of them investing with you.

If you do not answer these five essential questions when talking to a potential investor, they will not invest with you. However, knowing their concerns and answering them up front will greatly increase your odds of acquiring them as an investment partner, thus growing your business faster. The key to raising great amounts of private money lies in addressing potential investor questions before they are asked, having a realistic plan, doing what you say you will, and being amiable.

My Journey of Constructing a House

ideoteque — Mon, 18 Feb 2013 14:20:46 +0800

Hi forummers,

I am starting a thread on my journey of constructing a house on a piece of land.

Even though this sub-forum is for house renovation works, I hope that it is acceptable for house construction as well. Allow me to start on the introduction of the project:

Design Concept: Resort/Stilt House/Tradisional Malay house with some modern features. A mixed of our traditional culture and some modern practical concept. Surrounded by a nicely designed landscape and a wadding pool.

Size: Medium, maybe 3000 sq ft built-up. Maybe less, as I have some restriction in budget department. hehe.

Objective: for expatriates / young executives who work in the KL city center and want to experience living in Malaysia tropical work. Old school style.

This is the first round sketch of how I thought I will look like:
[attachmentid=3310852]

I will be appreciative if all forummers can give opinions/comments/suggestions through-out the journey.

Thank you in advance.

Building a Bungalow

ideoteque — Tue, 24 Jul 2012 16:26:20 +0800

Does anyone have any experience with choosing architect and then building contractor for your house/bungalow?

Is it adviseable to look for a design and build contractor or architect and building contractor separately?

I was told by a friend that the rule of thumb for cost of a bungalow in Malaysia is RM100/sqft, RM150/sqft and RM200/sqft for low, medium and high end design, respectively.

Thanks.

Bored with iPhone 4

ideoteque — Mon, 04 Jun 2012 03:59:40 +0800

Hi.

Im thinking of selling my iphone 4 n get a normal phone with minimal data usage. Nokia or songericson that costs circa rm1000. Any recommendation?

Thanks

Can iPad2 bluetooth keyboard be used with iPhone4

ideoteque — Mon, 19 Mar 2012 15:48:48 +0800

Hi all,

As per subject. Does the bluetooth keyboard for iPad 2 compatible with iPhone 4 and Galaxy Tab 10.1 Android 3.2?

Thanks for the reply.

Regards.

[addedon]March 19, 2012, 4:21 pm[/addedon]OK. I know now that the Apple Bluetooth keyboard can be used with both iPad and iPhone 4. But, is it compatible with Mr. Android? hmm.

Problem with mudah.my and iPad

ideoteque — Wed, 14 Mar 2012 13:00:07 +0800

Hi all,

I am trying to post an advertisemnt on mudah using my iPad, but having difficulty uploading photos. Does anyone have the same problem? Any way to solve this?

Thanks.

Property Price Assessment

ideoteque — Wed, 12 Jan 2011 17:59:03 +0800

Hi. What is the best way to check the current market value of a property, ie. residential land in Malaysia? Apart from browsing thru the internet for prices from sellers? Thanks.

Best Place for Medium/Low Risk Investment

ideoteque — Mon, 18 Oct 2010 16:36:20 +0800

Hi All,

What is the best place to invest your money when you have some extra cash in hand every month? Currently I am investing in ASB, ASW and AS1Malaysia. Lets say when I have an extra money from my salary every month, should I put it in one of those Amanah Sahams Or theres a place which is low risk? fixed deposit maybe? Thanks all.

Multiple names in one housing loan

Thu, 01 Jan 1970 07:30:00 +0800

Multiple names in one housing loan

ideoteque — Mon, 11 Oct 2010 16:17:37 +0800

Hi All,

Is it possible to share housing loans with a few friends (ie. 4 names) to buy a property (ie. a bungalow)?
thanks in advance..

How to Overcome Traffic Jam

ideoteque — Fri, 17 Sep 2010 01:20:07 +0800

Hi, we all know that most of the time traffic jams especially in Malaysia are due to drivers slowing down their vehicle to stare at something thats happened by the roadside. These people can cause massive traffic jams just by being selfish to look at something that is even nothing serious by the roadside. These jakun people not only in Malaysia lah, even in UK or US, people tend to do that. Ive been thinking of different ways on how we can avoid traffic jams caused by these onlookers.

One way is to clear the accident site as quickly as possible.

Another is to cover up the accident site (be it serious accident or just car breakdown) with boards so that drivers wont get the chance to take a peek at whats going on behind the board. We can also make money out of this board by advertising. haha.

What other ways that u think is feasible? Just for open discussion...

MSc in Civil Engineering

ideoteque — Sun, 08 Aug 2010 21:33:03 +0800

Hi everyone,

I am thinking of furthering my studies in Civil Engineering. Either Structural studies such as High Rise Buildings and Offshore Structure Design or Urban Transportation studies (i hate traffic jams, thats why I want to find a way to combat this problem in KL). Does anyone have any info regarding doing Masters of Science in Civil Engineering in Malaysia. Which school is the best? How much is the course? The prospect in career advancement?

Any help is highly appreciated!
Peace..

New Car Models 2010 in Malaysia

ideoteque — Sun, 24 Jan 2010 23:43:36 +0800

Hi,

Does anyone know what new car models going to be introduced in 2010?

Rumors that I heard with no confirmations are:

- car prices will be reduced, import tax from 200% will go down to 30%?
- New persona facelift. When?
- Proton SUV?
- Proton Waja replacement model. When?
- Mazda2. When?
- Suzuki Alto?

Thanks!

Playstation Store Problem

ideoteque — Sun, 15 Mar 2009 18:29:40 +0800

I just bought a ceramic white PS3 at Sony Center yesterday. But I am having problem downloading demo games saying that Playstation Store is not available in your country. Is that true that we can enjoy the luxury of downloading stuff on Playstation store here? coz I know when I was in US, my roommate has been doing that. Thanks

Civil Engineer

ideoteque — Sun, 01 Mar 2009 21:51:15 +0800

Hello,
Any civil engineers or civil engineering students here? Does anyone know any friends/relatives/father of a friend who is a senior civil engineer. Just want to know whats the salary like here in Malaysia. Is it as delicious as in other countries?
Thanks ahead of time.

Leopard and iLife 09

ideoteque — Sun, 01 Mar 2009 21:08:01 +0800

I am currently using Mac OS Tiger. I was wondering whether I can get a cheaper Leopard instead of RM500+ at the store. I read somewhere, maybe on apple.com, they said the current mac user can get an upgrade for $79 only. I didnt get the chance to go to the apple store yet, so I thought some one could guide me on this here. Does anyone know the price the sell it in Malaysia? Mac Box Set looks really tempting.Thanks!