I am looking at doing my first deal. I have put together a skin and bones proforma to frame the numbers.
I am looking at two lots in a neighborhood in New Orleans, LA. It is 5 mins from downtown and has a lot of potentials. The lots are right in the middle of an opportunity zone but not included. They are separately owned. One has a building on it. the other is a garden. The building will need a complete renovation. We are estimating construction at 200 SF for all 15130 SF of program space. As of now, our financial model consists of renting 15 Units @ $1,300-$1,500/month with 2940 SF of commercial space @ $1.20/SF. ( I have an excel sheet that breaks down to numbers further - including pre-development cost and etc.)
I have saved up some capital through my business. I have decent credit and access to someone who can assist with getting me closer to an 800 score. I think though, there is a way to get this deal done with 0 of my Capital Down.
Any advice? Any previous experience? It will not go on deaf ears.
Thank you
Hi Oscott, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
I too would also want to know how to get free real estate.
Oscott - no one's going to give out a 100% LTC loan to someone who's never done a deal before. I mean they wouldn't do it for someone who's super experienced too unless the deal was something extremely special and had some kind of risk mitigant like full recourse or a stupid below market basis.
You're going to need to find enough cash to take control of the deal through an option or something and then find a co-GP. Then be prepared for the co-GP to make most of the money on the deal.
This is of course assuming that the deal is actually a slam dunk and a certain success, etc, etc. More than likely, you may not ready to be doing your own deals just yet.
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