Developing a 4 acre 36 unit complex from the ground up

[Jonathan Jaffe]

I have an opportunity to partner into a deal to develop a 4+ acre apartment complex in a great location. Medical complexes abound, high rent luxury apartments have 6 month waiting lists nearby. I'm so new at the REI game, I am really not sure where to start on due diligence to determine if the deal is a good one. Any advice on how to start and make the research manageable in small chunks so this doesn't seem so overwhelming is GREATLY appreciated. Thank you all in advance!

[Alina Trigub]

@Jonathan Jaffe

Questions/things to consider:

1) What is your role going to be in this project?

2) What is your material participation?

3) What is the demand in the area? Go through each asset class you're planning to develop.

4) How much will it cost?

5) What type of structure you're offered: JV versus something else?

6) How long for?

7) What is the back up plan?

8) What if this doesn't work out: can you afford to lose the funds you're investing in this deal?

9) What is your role? What are everyone else's roles?

10) Is the plan to phase the project out or do it all at once?

The list can go on and on but I think the questions above will get you started.

Best of luck!