Has anyone ever wondered that in a totaly disasterous market why would builders and developers keep constructing new homes if every one they built they lost money on. in any market certain companys continue to build homes and make profit while a lot disapear and go broke.
it is called profit sharing ,you can take on equity partners who contribute ,1,5,10, 20, mill it makes no differance . if you buy mellons for a $1 a box and sell mellons for a $1 a box and buy a bigger truck to sell more . So the smart companys use many small JV partners which in the end will be the end users of the product, some will be straight out investors others will be purchaser investor .
They cut their overhead as well as sharing on a 50/50 basis of net profit with no mark up on cost to investor but still sell their product at a fair market price 50% profit is better than 100% of nothing
those companys are out there if anyone is interested in making real world returns around 50% plus pa on real property with either first or second registered mortgages in Australia you can contact me on raykling@netspace.net.au for more info cheers Ray