Real Estate Option & Equity Partners
Hello,
I’m convinced I have found a fundamentally solid real estate development opportunity. The property is an existing series of “antique” mill buildings located on the waterfront in a small suburban town in Connecticut, a picture perfect New England Village. The property has been approved by the town for restaurant, retail and residential use. The current owner has an extensive plan for the development, but lacks the funding, ambition or ability to go forward. The town wants the property developed.
I would like to develop this project. I estimate the total cost will be upwards of $25 Million, including the acquisition. Potential value and profit with development complete is $50 Million+.
Not being able to secure “conventional” financing through normal banking sources, i.e. not having the minimum 20%+ as a down payment or reserves, I am considering seeking equity partners to fund this project.
Would it be feasible to ask the current owner to be a partner, putting in the property as his share, and me securing the funding source? How can I approach him to “lock-up” the property for a period while I seek the equity partners? How can I go about getting an option without putting up cash?
There is terrific potential here. I’d appreciate any insight you may offer.
Thank you.
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