Passive investment in a PUD

[Charles Becoat]

I have a client with 200 acres in TX that I got approved for 40M including horizontal and vertical financing on 180 homes but the county wants them to pay for 180 water meters up front and the lender doesn't want to include that on the term sheet. Does anyone have any advice on raising 700K in capital for water meters? We're offering 50K at closing, 15% ROI and 1% equity in the development.

[Percy N.]

Quote from @Ronald Rohde:

Quote from @Percy N.:

Does the utility company want a deposit or pay for the infrastructure? If a deposit, some will accept a surety bond, which will cost a lot less.

Are you raising any LP capital for the construction? If so, just make it part of the offering.

If it is part of the horizontal development cost, why does the lender not want to cover it?

 following that, why doesn't the GP just cover it if its a pre-closing cost?

 Assuming this GP does not have or does not want to come out of pocket with the $700K