My husband and I are big fans of the website and are on here all the time. We're facing a dilemma right now and would love your input.
We are searching for our first deal and want to start as small as possible. The town that we live in is very touristy with mostly short-term vacation rental units (there is a major shortage of long-term housing). There is a big market for it, as the town is growing very fast, and we know that by investing in it we are guaranteed a long-term, steady income from rents.
What we want to do is:
- Find a small piece of land that will allow us to build 4 small apartments
- Buy it with investors funds
- Develop it
- Rent it long-term
We want the investors to fund the entire project, from purchase to construction.
How can we approach them about our idea and what information would we need for a first conversation? What would we need to include in a first conversation/forecast with a potential investor?
No money in building new. Tough to cash flow. Permits, codes, and why would they loan to you to do something they could do on their own. Unless the investors are close friends or family, and I would not advise you do that unless you have lots of experience.
Unless you are big in the game already, it will be very difficult.
I would suggest you find a distressed small multi, get a bank loan, fix it up and start your journey.