How to structure a deal to propose to investors
by VictorPlan, Window Shopper
- Created: May 17, 2013, 10:04 am
- Updated: August 21, 2013, 1:08 pm
I'm buying a property that I want to turn into a small Breakfast Inn in Puerto Rico. Great location, less than one block from a gorgeous beach in Ocean Park. The property is a foreclosure and I've already option to purchase it for $334,000.00. The bank is only willing to finance 75% or $250k and I need to come up with the balance of $83,500.00. I also need $150,000.00 for improvements and to get it ready to be a small boutique hotel. This unit has 10 apartments, 5 studios and 5 one bedrooms. I have $50,000.00 to invest and need to raise the balance need it of $183,500. I don't really want partners since my past experiences with partners has not been great. My questions is how can I structure a deal to borrow money to offer to potential investors. What % rate should I offer and want term? Do I have to offer guarantees? can I use the same property as collateral? How do I factor all this information in my business plan? Please if anybody can give me advise on these questions I will very much appreciate any help and guidance.
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