Development Investment Structure - for dummies! ??

3 Replies

Good morning from Texas! 

I am continuing to chase a dream opportunity in my area.  Things are lining up and it is soon coming time to start making things concrete.  I am wanting to organize and develop a multi-pronged mixed-use development.  There are going to be many moving parts, but they are coming together.  One of the questions I have is, what are common ways to structure investments in this venture.  I will have to leverage private investors, hopefully no banks, but that's yet to be determined.  I need simple examples/advice on how to structure the deals/paybacks/etc so I can intelligently attract and retain investors in this project.

Thanks in advance!

I would bring an experienced developer in up front... I think its going to be pretty hard for you to do this with no real experience  first thing most folks want to know when investing in this type of transactions is who is leading the charge what is their experience level.

close friends and family of course will over look the expeirnce qualifications.. but third parties that have any kind of investing acumen will most likely not..

The sponsor in these deals is the critical component.

I understand your suggestion, but not sure how/why I'd be involved in that scenario...

Any other thoughts?

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