Updated about 6 years ago on . Most recent reply
Indianapolis Deal Structure
Looking for thoughts on best way to structure deal that brings capital to potential project.
Opportunity to buy 30+ parcels of land for 30+ single family homes in Indianapolis.
Goal would be spec build starter homes or build out and hold as rentals for 2-5 years then sell.
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Greg Dickerson
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
It depends on how much capital your looking to raise and your investors return requirements.
If your raising only the down payment or equity portion you should offer a straight Preferred return of 6-8% deepening on your investors requirements.
If you’re looking to raise all the capital from investors then a 50/50 split would be more in line. You could offer a pref plus equity.