Private Investor Structure for Development - Posted by ATL4U

Posted by Craig on January 21, 2008 at 21:50:32:

Without knowing your formulas and how you assumed these returns, it is going to be extremely hard, if not impossible to find a private equity firm to do an equity deal for less than $3-5 million, especially on land development.

If you can JV with a parnter who has the funds that’s the easiest way to go. Show them your numbers and try go come to some agreement on splits.

Syndications are expensive and take a bit longer.

good luck.

Private Investor Structure for Development - Posted by ATL4U

Posted by ATL4U on January 16, 2008 at 20:00:22:

I’m doing a residential new construction project in Charlotte NC where I need to raise private money for the equity portion of the acquisition and development. I have several investors that are ready to invest and are requesting that I forward the necessary paperwork. How would you suggest I structure this for these private investors; JV, Syndication, etc?

The total project development cost is $6.8M, $1.2M for the land purchase and $5.6M for the horizontal and vertical development. I need $1M from my investors for the deal. The conservative total profit for the project is $5.7M. How can I structure the investment to protect their participation, as well as mine? They will receive a 30% return annually for three years, which is the life cycle of the project. Thanks in advanceâ?¦