new development Los Angeles

[Anthony Caleca]

Hello everyone! So I am trying to do my first Luxury real estate project and it is in Los Angeles area. It is a single-family residential luxury home that is a total of 7800 sqft, which 5500 is living space and 1300 is garage and storage. So from my research I have done and the information I have gathered from a few brokers whom specialize in this area, the comps are averaging about $1,440/sqft.

Property price: $2,900,000

Development cost: $1,950,000 (estimate of $250/sqft multiplied by 7800 sqft home)

Total estimated investment: $4,850,000

Estimated sale price of: $7,900,000 ($1,440/average sale multiplied by 5500 sqft living space)

$7,900,000 Estimated Sale Price

$4,850,000 Estimated total investment

$3,050,000 projected gross profit

after paying interest on borrowed money, taxes, commission to broker and other surprise expense, estimated projected Net profit of 1MM- 1.5MM

• My question now is I have close to 30% of 5MM for the down payment for this development, what would be the best way or any way if there is one at all to raise the other 70-75% to do this project.
• What options do I have to raise or secure the rest of the capital for this deal?
• Please fill me in on any other expenses or important info I might be missing?

The property is already approved with permits to develop a 7800 sqft home,

Even though this is out first time doing our OWN luxury development, my father has about 20 years of overseeing ultra luxury developments from start to finish in NYC. Please any advice or guidance feel free to post any of your thoughts, thank you!