Can’t find an investor for development site

[Boris Babakhan]

Hi BP,

I have purchased a vacant lot, got the plans approved for 31 unit residential building in NY.

and ready to build.

I need to get investor who can fund

40%, I want to fund 10% and bank will do the rest. In return I am offering 40% of equity to investor.

Investor will get 1.5m return within 24 months on 2.5m invested.

Do you think it’s a small return? Or there is something I’m missing?

[Joel Owens]

How do you know the accurate costs associated with a build this size? Is it even the right time in the cycle to build such a property where the lot sits? What are absorption levels for inventory in the immediate area? 

Have you ever watched Million Dollar Listing New York? Fredrick Ecklund and Ryan Serhant sell off lot's of these development deals when they are being finished. They know lot's of developers big and small. You might want to see what you find out for thoughts on stabilized resale values etc.