Financing a new development

[Neil Pith]

Bp'ers I need your help!

My Father-in-Law (FIL) recently made a proposal to partner on a new development.  We are looking at a 70-unit MFH built from the ground up with the potential to expand it into a 143-unit property depending on how successful we are. 

The FIL has done several deals in this market both SFH and MFH for the last five years and has had great success. I, however, am a rookie and have done one SFH deal to-date and within this market. Him and I are very familiar with this market, however, he lives within the market and we are across the country 1300 miles away.

I am looking to partner with him for two reasons: 1.) To learn 2.) Investment potential. 

With the context above, I am needing your help on how to finance this deal:

We will be taking a personal loan to finance this.  We will be needing $200,000 for this deal (the project is estimated at $2M).  What instruments are available or recommended?  We are a young professional couple with limited capital and decent earnings ($275-300k/year).  Appreciate any input.

Best,

-Neil