Finding investors for a commercial building renovation/conversion
hello there! I am brand new to the REI world, and I've yet to make my first deal. I've been studying a few different programs and I'm confident in my ability to score a wholesale contract soon, but I have a family member who approached me and asked for some help finding additional funding for a project he shares with 4 other partners. Each party owns 20% of a 35,000 SQF building. They intend on updating the ground level and basement units, and converting the 2nd story 10,000 sqf space into 14 apartment units. They have already put 500 K into health and environmental updates and the building itself is paid in full. After calculating repair costs and requirements (permits, etc) it's estimated at 800K of work. The ROI based upon local comps, cap rate, and the financial profile is around 2 million dollars, but's they aren't planning on selling it.... so my question is:
How do I approach investors with this type of property? All party's involved are prepared to give up a percentage to someone who will fund the repairs, but they aren't willing to use the property as collateral for the loan, and obviously there isn't going to be an immediate ROI like a classic fix &flip. I'm a little confused and intimidated by the magnitude of this deal as my first project. Any suggestions?