Structuring a Development Deal
Hello all, hope all is well. I have noticed, and verified through research, that there's a supply shortage as well as a market "gap" for middle to middle-upper income nightly rentals in a neighboring town from where I live. After thinking about it and talking it over with my wife, we feel a 15 small house "community" would best meet the need for this, tap into the "small" trend, and keep utility expenses low to maximize profits. It's in/near the mountains and close to various attractions like the Tryon Equestrian Center and Pisgah National Forest, so we feel a full-on hotel wouldn't do the area (or travelers staying here) justice, and that individual cabins would be best.
Now when I say small, I don't mean the stereotypical tiny house on wheels, but 400-640 sq ft cabins on crawlspaces. Eliminates permitting hassles as well as the option to sell them individually should this not pan out.
I'm in the process of finding an investor/partner to help get this project off the ground, but am unsure how to structure the deal. I'm leaning toward doing an equity share and creating a limited partnership between myself and the investor(s), but don't know if that's the best way to go about it. I have a meeting setup with my attorney to talk about it, but wanted to get input from people who might have direct experience with something like this and what lessons were learned.
Any and all input is appreciated! Thank you in advance!