How To Raise Funds For Development Projects

Question

Hi Everyone!

I was hoping to reach out to this awesome community to find suggestions on raising funds for development projects.

For a little background, I am a licensed broker and I am working on finishing up my architecture license this year (only 3 tests left!).  Being out around the town, digging through the GIS and MLS, I continuously have a stream of ideas for projects that could be built and be profitable in this market.

There are two projects that I have begun putting together schematic designs for and have taken both to contractors to get cost estimates for construction.  With both of these projects I hit a wall at this point as to what I need to do next when it comes to financing them.  Both projects are urban infill townhomes in the downtown area in Grand Junction.  One would be 2 higher end, large units.  The other is about 7 row-house style townhomes, attached to an existing commercial space.

Any input for how to best go about finding financing, partners, etc, for these projects would be amazing!

Chad Harris · Answer

@Hai Loc thanks for the input.  Two units would be about 2500 sf with 3 beds 2.5 baths, garage, courtyard, plus bonus space above the garage in the $400k-$480k range.  The ones attached to the commercial space would easily be able to get $175k each.

Hai Loc · Answer

All you need is to find 1 guy.. have a proforma ready with business plan, financials and bio of players involved to start..

How much will each townhome sell for?

Chad Harris · Answer

Thanks Jon, I appreciate the input.  I will look into PPM a bit more.  I will also definitely be pitching it at the real estate investor group.

Both projects would be to build and sell, the commercial space would be held though.