In a Pickle - Looking for Advice

[Alex L.]

Myself and several partners invested in a piece of commercial real estate + business to operate from this real estate. The hired GC is awful and has rung up the bill well beyond the Loans we have available to build the thing out. Meaning we will shortly run out of money and need to find more. Either via a better appraisal and more from the bank or private investors. However, we are likely putting the building underwater by continuing. The business operations will offer generous returns, but having the real estate underwater isn't good. We could stop construction and try to sell or lease it. Construction is 75% complete... What other options are we not thinking of?

[Corby Goade]

No offense here intended, but how much experience do you have with commercial construction? I've found often these situations are a problem because the owners are inexperienced and don't know what to expect, so many things become surprises. 

Not sure if that is the case here, but the first thing I would do is sit down with the GC and have a frank and friendly talk. I'd be honest about my experience and expectations and see what they say. Keep in mind- it might be uncomfortable, but you and your GC are partners in this deal- you both want the same thing, to win and make money. It doesn't have to be an adversarial relationship as long as you are both fairly reasonable. 

Best of luck- hope it works itself out for you!