How To Structure This Deal?
I am going to develop and build-out an apartment complex with an investor financing the entire deal.
What type of stakes should each party be entitled to?
What % of ownership should each party receive? etc..
Anyone have any experience doing something like this?
Thanks
Yes I have done this before but never with a private investor. I am actually a builder/developer by trade but have always went with a conventional construction loan for financing. With banks tightening up so much, I was not able to get the financing on this deal I wanted and did not want it to fall through so I brought in a private investor.
I would not mind doing the above stated and waiting until final C.O. to split profits. I would be comfortable as long as I can be guaranteed the funding would be there until the end.
What end % would be satisfactory for a private lender in this deal?? 50%-50%
Well, we are looking at a 50%-50% split to make both parties happy. This sounds common. I will own the land am not sure that 50-50 is going to be the final outcome because the investor might be putting up just the construction costs.
If anyone on the boards is looking for an investment and can match/beat these terms, I can give you a rundown of the proposed project. I am now looking at all options. This deal is definitely a winner for somebody, that is for sure.