Building Project - Need Advice
I am working on putting a build project together with my uncle. He knows some people willing to invest 100% of the money so we don't have to come a dime out of pocket. My uncle does the build work and I will be doing back end numbers/etc. We aim to build 26 units all 1/1's and estimate it should cost us around $1.5M +/- (we still need to survey the land and write up plans). We will fully rent it out and then cash out the invested money to pay them back then collect. What would be a fair percentage for us if theres 3-4 guys investing in the project plus the two of us?
#1 All Forums Contributor
- Investor
- Virginia
@Jason Etheridge
Traditionally it’s broken up in several tranches.
There is the GC who would be cost plus a fee. There would be a management fee and then other possible fees and then the profits
Traditionally investors would get between 6-9% preferred return plus 80% of profits in this situation and they would want to liquidate in 7 years.
Quote from @Chris Seveney:
@Jason Etheridge
Traditionally it’s broken up in several tranches.
There is the GC who would be cost plus a fee. There would be a management fee and then other possible fees and then the profits
Traditionally investors would get between 6-9% preferred return plus 80% of profits in this situation and they would want to liquidate in 7 years.
Thank you Chris! This has given us a baseline
