ROADMAP · RESIDENTIAL
Buy, renovate and resell
Work backwards from a conservative sale: demand and full cost, maximum entry price, review, renovation and exit.
Who it fits
For investors who accept project risk, keep contingency and create value through selection, design and controlled renovation.
When to reject it
Reject the route if it only works at a record sale price, without contingency or with unconfirmed permissions.
Value-creation logic
Value comes from the right purchase price and a product supported by end-buyer demand, not renovation alone.
Starting inputs
- Capital for purchase, works, holding and contingency
- Target buyer and location
- Holding period and acceptable downside
- Investor involvement in key decisions
Documents at the decision gates
| Stage | Verifiable document | Gate |
|---|---|---|
| Before committing to purchase | Title, charges, inspection, restrictions and draft agreement | Critical risks resolved or exit conditions agreed |
| Before approving costs | Quantities, quotes, VAT, contingency and payment dates | All K funded and resilient to a lower exit |
| Before works | Confirmed permission process and agreed scope | Conditions match the design and timetable |
| Before paying for a change | Written price, timing and contingency impact | Approval before ordering |
| Before sale | Completion papers, buyer offer and settlement model | Price, costs and distribution agreed |
Budget control, permissions, sensitivity and Compte de Urgel address different parts of the review.
A shared nine-stage process
Objective and capital framework
- Decision
- Decision: define sale objective, available capital and contingency.
- Evidence
- Evidence: documented inputs and review conclusions for sale objective, available capital and contingency.
- Risk
- Key risk: committing before the assumptions for sale objective, available capital and contingency are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for sale objective, available capital and contingency are confirmed.
Investment thesis
- Decision
- Decision: define buying below an evidenced exit with a controlled renovation.
- Evidence
- Evidence: documented inputs and review conclusions for buying below an evidenced exit with a controlled renovation.
- Risk
- Key risk: committing before the assumptions for buying below an evidenced exit with a controlled renovation are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for buying below an evidenced exit with a controlled renovation are confirmed.
Search and first filter
- Decision
- Decision: define area, end buyer and liquid apartment type.
- Evidence
- Evidence: documented inputs and review conclusions for area, end buyer and liquid apartment type.
- Risk
- Key risk: committing before the assumptions for area, end buyer and liquid apartment type are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for area, end buyer and liquid apartment type are confirmed.
Preliminary economics
- Decision
- Decision: define maximum purchase price worked back from a conservative exit.
- Evidence
- Evidence: documented inputs and review conclusions for maximum purchase price worked back from a conservative exit.
- Risk
- Key risk: committing before the assumptions for maximum purchase price worked back from a conservative exit are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for maximum purchase price worked back from a conservative exit are confirmed.
Legal and technical review
- Decision
- Decision: define title, condition, works scope and permit route.
- Evidence
- Evidence: documented inputs and review conclusions for title, condition, works scope and permit route.
- Risk
- Key risk: committing before the assumptions for title, condition, works scope and permit route are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for title, condition, works scope and permit route are confirmed.
Structure and acquisition
- Decision
- Decision: define arras terms, ownership, finance and closing conditions.
- Evidence
- Evidence: documented inputs and review conclusions for arras terms, ownership, finance and closing conditions.
- Risk
- Key risk: committing before the assumptions for arras terms, ownership, finance and closing conditions are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for arras terms, ownership, finance and closing conditions are confirmed.
Strategy delivery
- Decision
- Decision: define design, budget, contractor, procurement and quality control.
- Evidence
- Evidence: documented inputs and review conclusions for design, budget, contractor, procurement and quality control.
- Risk
- Key risk: committing before the assumptions for design, budget, contractor, procurement and quality control are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for design, budget, contractor, procurement and quality control are confirmed.
Control and reporting
- Decision
- Decision: define budget actuals, programme and change approval.
- Evidence
- Evidence: documented inputs and review conclusions for budget actuals, programme and change approval.
- Risk
- Key risk: committing before the assumptions for budget actuals, programme and change approval are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for budget actuals, programme and change approval are confirmed.
Stabilisation and exit
- Decision
- Decision: define property preparation, marketing, negotiation and sale completion.
- Evidence
- Evidence: documented inputs and review conclusions for property preparation, marketing, negotiation and sale completion.
- Risk
- Key risk: committing before the assumptions for property preparation, marketing, negotiation and sale completion are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for property preparation, marketing, negotiation and sale completion are confirmed.
Review scenarios
Base case
The property passes review, works remain within scope and the exit is supported by comparables.
Downside case
Extra works, a slower sale and a lower price are tested together to assess capital resilience.
Frequently asked questions
Where does the calculation start?
With a conservative exit and every cost. Purchase price is an output, not the seller’s starting point.
Can a sale date be promised?
No. Base and slower-sale cases are tested without guaranteeing either.
What is a STOP gate?
An unsupported exit, critical defect, unworkable permission route or missing contingency.
