Large Development Advice From Experts Is Needed

[Liran Afergan]

Hi 👋 to all of my BP fellows,

I'm investing in real estate (LTR buy & hold) for the past 3 years. Currently I own a total of 14 units on my portfolio, that it's average ROI is 24.65%.

I have an upcoming opportunity for a large development, project in a scale that I haven't experienced before , but I do have the entrepreneurship skills and the networking to make this project happen.

I've consulted with a few associates from my network already, but I would also love to hear the BP community people's thoughts and advices. I would appreciate if anyone who dealing or dealt with larger scale projects will advise me on this one.

Now to the facts:

Property type: Church

Property cost: $200k

Development costs: $2.1M

Number of units: 24

Average rent income per unit: $2,000

Estimated total investment costs (including unforseen situations security):

$2.8M

Estimated annual total income:

$576,000

Estimated annual expenses + vacancy loss:

$176,000

Estimated net annual income:

$400,000

Estimated net ROI:

14.28%

Estimated time to end project:

2 years

***The Property is located on a prime location in WB, PA***

There are different sources of funding that I'll have to use for this project, which I guess it'll have to be a cash investor funding combined with banks / lenders money, so obviously I wont be a 100% shareholder.

I will appreciate your thoughts , I know it's a long post thank you for taking the time to read & answer.

Liran