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Property Development Business

Exclusive "partner" licenses; Auckland & Queenstown

$35,000 plus GST (per licence) - Auckland

#241121

detail

Location: Auckland & Queenstown

This is an outstanding opportunity to purchase one of an exclusive number of "partner" licenses with an Auckland based property development business.  Established in 2010 by the founder, and with over 23 years of property experience behind him, partner licensees will become an invaluable part of the team.  Licensees will be able to transact deals on behalf of the business, and not just as a broker, with most of the risks and liabilities borne by the business.

The usual mode of operation is to secure a potential property with an extended settlement period.  This allows the business to put together all their "value add" options for the property including all architectural and engineering plans.  An Information Memorandum is prepared for prospective purchasers and the process begins by sourcing a buyer for the "development".  Settlement for the sale of the development is scheduled to coincide with the original purchase of the property, limiting the financial risk and capital requirements.

The Licensee will primarily be involved with either the sourcing of potential properties or the sourcing of suitable purchasers to on sell the property, or both.  This does not preclude them from being involved elsewhere in the transaction process.  In its simplest form a licensee could spend 3 to 4 hours on a property transaction, if they know who should be buying the property from the business from their personal networks and then facilitating meetings to enable an unconditional transaction to take place.  In all transactions, the business will be available and willing to assist the licensee.

In the typical real estate model, a broker works for the vendor and earns a fee based on an agreed percentage of the successful sale of an existing property - usually between 2 and 4%.  In this case, the partner licensee can manage the whole transaction and share between 50 and 75% of any upside, after the deduction of agreed project costs.  The licensees share in these cases can be very significant.

The business has pioneered proven profit, wealth building and operation models which anticipate and eliminate likely pitfalls and common mistakes that could be made by licensees.  Video training modules will give the necessary knowledge of the industry, while direct one on one support sessions will provide the confidence needed to the partners for them to excel.  Training will also cover working examples to make sure that what is learnt can be applied in real life situations that the licensees will face.

Growth Opportunities

Recent government and bank announcements will fundamentally change the property development and lending landscapes once they are enacted.   Allowing property owners to develop up to 3 houses on 3 levels without needing a resource consent will mean an increasing supply of available properties ripe for development.  Increasing borrowing restrictions, focusing on a 6 to 7 times' dept-to-income ratio, will mean that potential licensees may need to achieve greater levels of income to satisfy their own personal property ambitions.

The licence will enable the licensee to work and transact deals anywhere in New Zealand.  While there are offices in Auckland and Queenstown, these geographic locations are not an impediment to doing business anywhere.  For training and team meetings required to be in person, the licensee will need to travel to the closest location.

Paradigm is offering a "carrot" to potential licensees.  Any licensee who signs an agreement within a month of receiving the Information Memorandum, will be able to have the purchase price of their license refunded in two tranches if the sales value meets certain conditions.  If the total license fee is repaid by the business, then the licensee has essentially purchased their license for free, enhancing their return on investment.

The Licensee

The business is looking for licensees who have a passion for property and who are driven and determined to run their own business or simply want to earn extra income.  They can come from any walk of life.  Licensees will be able to set the level of commitment they make to their licence and therefore the business.  They will be able to choose how involved they get in deals, what aspects of the deal they want to cover and the level of time commitment they dedicate to the role,  There are no minimum levels of time stipulated by the business.

Sale price per licence: $35,000 plus GST

Contact: Andrew Larsen
Office: Auckland

Confidentiality Agreement for Business Reference 241121, Broker Name Andrew Larsen

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. We acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.
  11. Privity: For the purposes of Part 2, Subpart 1 of the Contract and Commercial Law Act 2017, the parties acknowledge and agree that the agreements and undertakings given by the recipient in this Confidentiality Agreement are given for the benefit of the Vendor and its related companies and representatives, and are enforceable at the suit of all or any of them.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
Mandatory Fields*