nitinthakur100

Broad project plan.

Investment
Expected return
Assumptions made for the above.
Cash flow.
Role of partners and the lead partner (you)
Checks and balances proposed to avoid mid-project conflict amongst partners

Nitin

bharat70

Its gr8 tht you are showing keen interest in this nitin. The broad parameters are we are assuming a 200 yards plot ( 3BHK APARTMENT ON EACH FLOOR) in locality of west delhi like paschim vihar/behra enclve etc. as doing in south delhi investment reqd is much more.

LAND : 8 CR
CONSTRUCTION OF STILT PARKING ,GF,FF,SF,TF WITH SCHNEIDER LIFT AND ITALIAN MARBLE IN MAIN ROOMS WITH WOODEN FLOORING IN 3 BEDROOMS, MODULAR KITCHEN,JAGUAR FITTING IN BATHROOMS ETC. : 1.50 CR
TOTAL PROJECT COST : 9.50 CR
TOTAL SALE AS PER CMP: GF:3.25,FF:3.10,SF:2.95,TFwith ROOF:3.10 : 12.40 CR BUT WE WILL TAKE IT AS 12 CR TO BE CONSERVATIVE SIDE.
CASH FLOW: THE BUILDER GROUP GETS 4 MONTHS TO BUY THE LAND IN MEANTIME IT TAKES BOOKING FROM INVESTORS/DEALERS FOR VARIOUS FLOORS AND THIS IS HOW IT WORKS :

THE BUILDER GROUP (us) PAYS 25% Rs 2 cr and BOOK THE PLOT WITH AGREEMENT TO SELL AND IN THE 4 MONTHS U GET BEFORE TAKING DELIVERY OF PLOT WE BOOK GF 1CR,FF& SF& TF 0.75
TOTAL RECD BY BOOKING 3.25 CR
BALANCE PAID TO PLOT SELLER 2.75 AND PLOT IS REGISTERED .
TOTAL OUTGO BY THE BUILDER GROUP : 4.75 CR
ARCHITECT IS HIRED BY US TO CHECK QUALITY DURING CONSTRUCTION AND GET MAP PASSED EXPENSE INCLUDES MCD (UNDER THE TABLE EXPENSE) FOR 0.25
CONTRACTOR IS HIRED AND CONSTRUCTION IS OUTSOURCED HE'S GIVEN 0.25 ADVANCE.
TOTAL OUTGO 5.25 CR

AS SOON AS CONSTRUCTION STARTS ( NORMALLY AFTER 3MONTHS FROM REGISTRY OF PLOT) AND YOU PUT STILT LANTER ( 2MONTHSMORE TOTAL 5 MONTHS) YOU GET 1ST INSTALLMENT GF FF,SF & TF 0.50 EACH WHICH WILL (BASICALLY COVER THE ENTIRE CONSTRUCTION COST OF 1.50.) = 2CR
2ND INSTALLMENT( NORMALLY IN 10TH MONTH) COMES ON 2ND FLOOR LANTER AGAIN 0.5 EACH FOR 4 FLOORS =2 CR
3RD INSTALLMENT ( NORMALLY IN 14TH MONTH) COMES ON FIXING OF MARBLE OR COMPLETION OF FLOORING ON EACH FLOOR 0.5 EACH FOR 4 FLOORS = 2.00 CR
BALANCE (18TH MONTH NORMALLY) IS RECEIVED ON DELIVERY OF FLOORS = 2.75 CR
HOPE THIS GIVES YOU THE BASIC CASH FLOW IDEA.

PROFIT : THE BEST CASE SCENARIO YOU SPEND 5.25 MAX AT ONE TIME YOUR SALE IS 12 SO CALCULATE IT.

THESE DAYS BUILDERS ARE NOT SELLING THIRD FLOOR WITH ROOF AS ANOTHER FLOOR MIGHT BE ALLOWED IN DELHI SO DEPENDS HOW MUCH INVESTMENT WE DO AND WHAT WE SELL OR BOOK.

ROLE OF PARTNERS AND CONFLICTS: ROLE WILL BE DEFINED DEPENDING ON THE EXPERTISE OF EACH GROUP MEMBER AND CONFLICT AS SUCH DON'T ARISE MUCH BUT IF THEY DO VOTING OR MAJORITY VIEW IN A GROUP IS UPHELD.

Varun84

Bharat, thanks for your valuable inputs. Thanks once again.

rummy21

Hi Bharat,

As per your calculations, the profit booked would be in the range of 3.5cr (12 minus 9.5), right? and not 12 minus 5 (that you mentioned)

Also, how much experience do you have in this line? Have you ever constructed something before?

Finally, how many partners are we looking at here considering the cash outflow is in the range of 9.5cr?

bharat70

Rummy you are right profit would be 3.5 cr but i was talking about the profit % as you wont be spending 9.5 cr (see cashflow) so what i wrote was to calculate the profit % in best case scenario you spend 5.25cr and get profit of 3.50 cr in 18 months.

Been in this line for 5 years now and Rummy we as a group wont construct a single brick we will just manage as everything is outsourced these days to small contractors from foundation to final coat of paint that's how it works these days.The company/group managing everything is called Builder.Its like factory production these days you as a group are just managers/ceo.

We do not need 9.5 cr max you need in worst case scenario is if you do not get any booking ( highly unlikely) as detailed in cash flow is 8 cr for cost of land.Ideally the group should have 4 or 8 group members as 4 floors are to be built GF ,FF,SF &TF so multiples of 4 can work better. Max Fund needed 1 cr each by 8 group members.

I do not know how many want to join the group as not much response on this blog yet so if you want to do this guys please let me know as we can then set up a meeting of the group.

callmesumeet

Hi Bharat . I would be interested.

animani

My name is chetan aggarwal. I'm a civil engineer and living in sector-57, Gurgaon. I was thinking Why not to form a group of end users and became builders ourselves and save money?

From Bharat's idea, I tried to evaluate cost of land and construction for 215 sq. yard Ansal Plot in sector-56,57 Gurgaon. Please find attached sheet for details.

Since I'm a novice in this field, I may have forgotten to include certain items in cost analysis. Please have a look and comment. Bharat ji, do you think it will work?

Attached Images

Builder plan.pdf (2.00 MB, 104 views)

manu813

hi varun
if you don't mind sharing can you please tell which area you bought this plot in this price range..

Thanks!

__________________
Pick battles big enough to matter, small enough to win. -Jonathan Kozol

valueplayer

-8cr plot registered by paying 4.75cr to seller, how??
-Even if one has done many projects beforehand to show the quality n reputation in market, booking floors by new group is a tough task at current market prices (Took 8 months to sell first Ready to Move flat in east of kailash in new A+ construction building)
-0.25cr given to Architect/MCD at initial stage, why (not assuming completion certificate, which cannot be taken before hand), amount is too much, whereas 5-7 lacs is sufficient including map sanctioning fees/architect/MCD underhand

bharat70

Who said tht plot will be registered without paying seller read again if u get booking before then use tht money to register.
Booking floor is always tough but it all depends on the dealer network you have attached to you.Architect/ Mcd when did i say will be given at initial stage.