This document summarizes the agenda and key points from a training on managing real estate construction businesses by Vidya Bhagwat. The agenda includes identifying opportunities, partners and vendors, and analyzing project profitability. For opportunities, it recommends finding upcoming markets with low investment and high returns. For partners, it describes the roles of architects, contractors, project managers and others. Finally, it provides an example analysis of project initiation expenses, ROI calculation factors like saleable area and price, and estimated cash inflows and outflows.

1. Managing Real Estate Construction Business

2. Trainings by Vidya Bhagwat
Agenda
• Identify Opportunities
• Identify various partners & vendors
• Real estate construction profitability Analysis

3. Trainings by Vidya Bhagwat
1. Identify Opportunities
• Identify upcoming market upcoming market
• Look for next two year growth
• Low investment
- Identify opportunity first
- Move fast
• High return
- Focus on project which can be sold on minimum time.

4. Trainings by Vidya Bhagwat
2. Identify various partners & vendors
• Role of Architects :
- choose architects who have executive project in market &
have good local
Co-operation :
• Contractor
- choose contractor with proven contract.
• Project manager :
- identify civil engineer who have 2-3 year experience who can
manage vendors & managers.

5. Trainings by Vidya Bhagwat
• Marketing & selling :
- marketing sales can be out source to marketing companies
or can be taken care of developers.
• Brokers / Real estate agents :
- create a consultant agent before launching a product so they
can give customer in pre-launch.
• Material supplier :
- look for material supplier who own branded agencies & give
you longer payment cycle.

6. Trainings by Vidya Bhagwat
3. Real Estate Construction Profitability
Analysis
• Project initiation expenses.
• Project ROI calculation
• Construction product cycle & developers.

7. Trainings by Vidya Bhagwat
Project Initiation Expenses
Land owners deposits, total Laks Rs. 401
Land owners deposits, refundable Rs. 200
Land owners deposits, non- refundable Rs. 200
SD/Registration Lakh Rs. 39
Sanction cost Lakh Rs. 293
Brokerage Lakh Rs. 44
Legal, Lakh Rs. 0
Land scaping / Boundary/Comms cost, Lakh Rs. 8
Marketing/ initial launch cost Lakh Rs. 20
Sample flat cum sales office construction cost Lakh Rs. 20
Startup capital for construction/ buffer investment Rs. 50
Total 874

8. Trainings by Vidya Bhagwat
Project ROI Calculation
Saleable area_total, sq ft 209,088
Developers share in Joint-venture 50%
Saleable are _ developers, sq.ft 104,544
Average selling price Rs/sq.ft 5,345
Cash in
Revenue _ apartment sale Lakh Rs. 5,588
Revenue _ infrastructure charges + MSEB, Lakh Rs. 314
land owners deposits, refundable lakh Rs. 200
Total cash in lakh Rs. 6,103
Cash out
COGS, Lakh 2,675
sales & marketing (Reddvise), Lakh Rs. 113
Total cash out, Lakh Rs. 2,788
Total income tax paid in the project 200
Net cash ,Lakh Rs. 3,115
Multiple 3.565

9. Trainings by Vidya Bhagwat
Thank You