First time investment in Multi unit retail

[Kaushik Sarkar]

Hi,

I am looking to invest first time with a turnkey developer,  who is buying the land and building a multi unit commercial retail center and some apartments. He is looking at a group of investors like myself to bring 25% of the project value and then procure a bank loan for the remaining 75%. He will be selling the project to buyers once completed and not interested in operating.

How should I evaluate this deal from an investment point? What are the financial metrics i should be asking for? What kind of ROI i should look at, considering project completion will be 3 years roughly?

Other questions I should be asking?

thanks for the guidance

[Lee Sanders]

Hi Kaushik

I agree with Jaycee's advice. I would also suggest researching the developer’s experience with similar projects. Past success is a good indicator of future performance. understand the risk if the project takes longer or costs more. Good Luck!