I found a great opportunity and I’m trying to find different ways to get creative with investors.
There are two properties side by side which I think are undervalued. I would like to purchase them both using investors and put up two duplexes, for a total of 4 units. I would be willing to live in one of the units.
What would be the best way to make money off of an opportunity like this using money from investors?
That's a serious development undertaking. This should probably be in the development thread.
To answer your question though, you'll need to run a feasibility and pro forma exercise with all the numbers. You'll need to ensure you can get municipal approvals. Then design the project. Then finance the project. Typically banks will want to see 25% of costs (Land + Construction + Softcosts + Interest) in the deal before a construction loan.
The process to get that loan can't be summed up in this thread easily. If your investors will pay for whole thing power to you.
@Nicholas Field appreciate the insight. Doesn’t sound as simple as I thought it would be
Not trying to deter you.
First thing you want to know:
What are they zoned? Does that zoning allow duplexes?