Apartment Construction
Need some help with structuring a deal. Any reply would be appreciated. I have experience building apartment and have been a builder of custom homes for 10 years. I have always wanted to build and own student apartment, because tha is want i build and managed for a lawyer who made a killing. I knew all the numbers. I have found a huge oppurtunity to get 25 acres and is right by a college that is in need of housing. I have 300k in cash and the ground alone will be $1.5 mil. I only need 7-10 acres to get 250 units. It will cost me about 14 mil total to build any suggestions on getting financing? For just the ground? setting up an investor pool? REIT? What is the best way? I will have alot of sweat into it also about 12-15% OF COSTS. Thanks
What state is this? And is the land already developed? Some lenders will do 85%loan to cost on the acquisition and development(when there are final maps) and 100% loan to cost on the construction portion.