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Fred

Building houses with no capital

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Hi I was thinking about starting a business building houses, while helping unemployed people with work and gain skills and then and selling the house but don't have capital.

How can I go about doing this?

 

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6 minutes ago, Fred said:

Hi I was thinking about starting a business building houses, while helping unemployed people with work and gain skills and then and selling the house but don't have capital.

How can I go about doing this?

Just to be clear, you have neither land nor funds nor assets to put up as collateral to fund this project?


Community liaison. 
It ain't much but it's honest work.

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6 minutes ago, Claude said:

Just to be clear, you have neither land nor funds nor assets to put up as collateral to fund this project?

Yes that is correct I have building the building skills to build the house

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28 minutes ago, Fred said:

Hi I was thinking about starting a business building houses, while helping unemployed people with work and gain skills and then and selling the house but don't have capital.

How can I go about doing this?

 

 

12 minutes ago, Fred said:

Yes that is correct I have building the building skills to build the house

Is the goal of this business to make a profit or  helping unemployed people with work and gain skills?


Specialist in failure.

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1 hour ago, Fred said:

Hi I was thinking about starting a business building houses, while helping unemployed people with work and gain skills and then and selling the house but don't have capital.

 

41 minutes ago, Mesa Verde said:

Is the goal of this business to make a profit or  helping unemployed people with work and gain skills?

Or are you just saying that you want to help unemployed people to garner sympathy from investors?

 

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1 hour ago, Mesa Verde said:

 

Is the goal of this business to make a profit or  helping unemployed people with work and gain skills?

Is it not possible to do both?

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If your goal is to help unemployed people then you should start an NPO / NGO / Section 21 like Habitat for Humanity and approach donors, if you don't want to be dependent on donors, draw up a plan mentioning you intent to become self-sufficient by selling properties that they fund at a profit (not sure what will happen while properties are still on the market). Then you draw yourself a handsome salary as directors of these organisations do.

35 minutes ago, Fred said:

Is it not possible to do both?

You should know the answer to that:MISCHIEVOUS: building is already expensive and time consuming and will be challenging to add more uncertainty by training people along the way.

That being said, your plan from the get-go wasn't a viable one, you need a plot, building materials, expertise and labour to build a house. Even if you get someone with a plot to partner with, how does that help with money for building materials if you only bringing expertise to the party? And who is gong to pay the staff? You can't expect the plot owner to fund it, or put up his plot as collateral, you could but then you going to have a very small percentage of the project when done. Even smaller that if you had just gone out there as a building contractor and built houses.

Your plan will only work if you start or partner with an NGO.


Specialist in failure.

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5 hours ago, Brakish said:

 

Or are you just saying that you want to help unemployed people to garner sympathy from investors?

 

I see a lot of people go in at this angle, thinking they are going to get soft loans or lenient terms, the people who 
provide capital don't care, they care about profits.

In fact the very mention of having to help people with skills meaning the house will take longer to build, might be mistakes etc. will put many off. I don't know of people in SA who would fund this outside of a non profit situation.

If you were thinking of modelling it as a social enterprise remember that some people will support a business because they do good deeds but not to the tune of hundreds of thousands or a delayed property development and as a private profit-driven company you can't be going around asking for donations (something I have also seen lately).   

Edited by Prophet of Profit

Price is what you pay, value is what you get.

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@Fred Contact the Open Society Foundations they apparently want everybody to live in a nice house in a nice area so let them fund it. 

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3 hours ago, The Syndicate said:

@Fred Contact the Open Society Foundations they apparently want everybody to live in a nice house in a nice area so let them fund it. 

Soros will never fund this, he wants to see South Africa (and the world) burn, he wants the economy to crash and people to be poor, in face he wants everyone to be equally poor. His agenda is the opposite, he wants more people to be unemployed, this guy wants to help, this don't fit their narrative. 


“One of the great mistakes is to judge policies and programs by their intentions rather than their results.” - Milton Friedman

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@Fred If you are interested in following the NGO angle, there are models in Latin America you can follow but nothing like what you had in mind (i.e. selling it in the end) and certainly none that will make you rich as donors will want to know how their money is being spent but will allow you to offer training to people as well as built decent shelter for poor people.

One Small House (OSH)
One Small House builds homes and community buildings for the poorest families by bringing together determined volunteers and generous donors.
OSH identifies if a family is eligible to receive a new home by conducting in-person visits, vetting them through trusted contacts and community leaders, as well as requiring proof of land ownership. This ensures that the homes being built go to those who will benefit most from a safe, secure new home. In addition, OSH employs local labor to help volunteer crew and purchases all materials within the community to stimulate the local economy.

They raise funding for each project

TECHO
There is another larger organisation called Un Techo para mi País (Spanish for A Roof For My Country) instead of raising funds for single houses they do large-scale building of two room 6x3m Mediaguas (what we would call Wendy Houses) for poor people living in what we would call informal settlements.


Not "if", but "how".

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