what are investors looking for, compared to HML's

Question

I need to generalize here as this seams to be the proper forum to figure out how to propose a deal to an investor. 
An existing gas, car wash, and c-store need to build pre approved 4 bay lube center. I am trying to accomplish 2 things;1st- move away from private money, to less expensive commercial bank loan. The new loan would have more then enough capital to consolidate all other debt and 2nd- have funds available to build lube center. It also lowers existing debt service by 40%.  
To qualify for a commercial mortgage I need to lower the LTV, in order to get there, I would need an investor willing to put up $1.4M, 25% of the total value (includes business evaluation), or 35% of the "AS IS" value, (land and buildings). 
Once lube is built it would add an increase in value, of at least 15-20% in investors share. Also creates the added income the lube center brings in, adding more profits.

Kevin Mcfarland · Answer

We currently run the wash gas etc, I would prefer to hire a lube manager, as we once operated 2 repair shops, we could run it but I consider ourselves car wash operators, not mechanics or lube operators.

Kevin Mcfarland · Answer

This is the third time putting this up the moderator, said this is not the place to sell or advertise a deal. So I am trying to stay in general terms. I am trying to expand my existing operation , I would only need $400,000 just to build lube center, all the water, elect, sewer, site and prep work was done when c-store was built.  But the issue is I am carrying too much PM debt, so to get a favorable bank rate 5-5.5% today, I need to lower the LTV, the investors purpose is lower what bank see's as secured debt. so it can loan 60-70% on AS IS value $4M,  even though my cash flow services $350,000 annually. The banks do not care that I can service a $5M loan @5%=$350,000 w/o lube! They lend on LTV, as long as cash flow supports it.
So as an investor if I can prove to you the cash flow is significant  and to build lube would add 15-20%, adding in some operational profit, would a net of between 20-25% after 1 year be of interest to an investor. The only risk I see here to investor is the take out, as the cash flow is solid.

Account Closed · Answer

Hi Bill, I used to believe it was because I was a nice guy and I found the deal... and I'd offer to learn as much from my partners & the transaction and only collect my share at the end of the transaction.

PLUS, i have a profile pic and they like my profile pic...

Bill Gulley · Answer

For the sake of the subject, say I thow in 1.4M, now can you tell me why I shouldn't just build it? What do you bring to the table? You gonna run it, isn't that what a manager does and managers don't get any part of the business? Just wondering.

Don't mean to rain on your parade, but that's what any investor will be thinking. :)