Joint Venture Site Update: Kingston-upon-Thames
When setting up the John Howard Joint Venture Fund, my ultimate aim was to find partners I could work with and depend upon, with the end goal of bringing them on board for the future. So, when it finally came to striking up a deal with my first joint venture partner in Tolani Onajide, I knew straight away that we were going to work well together. And that shows in the potential of our Kingston-upon-Thames site. This project is estimated to rise from £800,000 to an end value of £1.6 million.
We recently provided an update for you on the development of the site via my YouTube channel. In the video, Tolani and I openly discuss the plans for the site and what we aim to achieve together. On hand is our brilliant project manager, Jack Ball, who provides further insights into the conversion as well as the importance of communication and teamwork needed here.
With Tolani’s excellent knowledge as a chartered architect and my own experience in property development, we are confident we can make this conversion work together by Christmas!
Our first joint venture property development is based on Fassett Road in Kingston upon Thames. It is a promising semi-detached property with a current valuation of £800,000 on the market and was purchased last November when Tolani contacted me about receiving help funding the deal.
The Newbuild property features three storeys and is 2,164 square feet in total. There are currently 120 properties for sale in the area with an average asking price of £580,926 and 45 properties to rent with an average asking rent of £1,505 per calendar month.
Not only that, but it sits within walking distance of a number of local shops and Kingston University’s Penrhyn Road campus, making it a desirable place for many to live in.
The original plan was to convert the property into five flats. However, we decided on planning for a two-bedroom luxury garden flat on the ground floor and a three-bedroom split level flat on the first and second floors. This will hopefully see the valuation rise to £1.6 million in the process.
With conversions, you never know what you’re going to find. During the process so far, Jack and his team have found rotten joists, burnt joists and other hidden damages which cannot be tackled beforehand. This is why it is so important that the contingency is in place, as it can account for all the extra costs associated with these types of jobs.
There is nothing that we haven’t overcome yet, though.
Teamwork and communication.
Jack and Tolani speak every few days, communicating about any new changes with the project. They always talk about topics such as when invoices are due to the contractor or when Jack issues Tolani with the interim certificate. Any issues that arise get tackled straight away.
If they didn’t have the relationship they currently have, there would be a lot of complications that would hinder the project from being fully completed. There would be no structure whatsoever.
On-site during the time of the video, the pair were talking about the bank valuation which happened the week prior, whether the contractor had completed everything required of them, conversations about the following meetings, changes to the architectural drawings, anything they’ve missed and any issues in general.
A good key tip that Tolani has learnt through this project is: Do not fall in love with this development. If you do, you do not see it through business eyes. At the end of the day, we’re not going to be living in this property, so our personal preferences do not matter at all. Instead, we want someone else to fall in love with it.
Tolani had an idea of installing some beautiful crystal bifold doors, but the issue was that they were double the price of any other doors! We should always put our business thinking caps on when it comes to property development since it allows us to get the best profit imaginable. That is where a joint venture comes in very handy – with me on hand to give out advice to Tolani here; she may have spent her funds on unnecessary features that the tenant can add in themselves.
This can be the case with any other joint venture. Learning is key to property development.
Follow in the footsteps of Tolani and become my next Joint Venture partner!
If you would like more information on our joint venture agreements, please get in touch today. Send your queries to email@example.com, and we will reply as soon as humanly possible. We hope to hear from you in due course and greatly welcome your interest!