How to Get the Last 20%

[Jim Macedon]

The bank will lend you 80% on a development. You can either put up the remaining 20% yourself or bring in investors.

If you can't or don't want to put up the money yourself and you can't find or don't want equity partners, what are your other options? I know there are mezzanine loans, but to be honest, I don't fully understand them.

[Jim Macedon]

Yeah, it's the age old question, if you need experience to get a loan, how do you get experience?  I've developed somewhat of a relationship with a local bank.  Built a 4plex.  Now I'm trying to do a small condo community on 2 acres.  Hopefully that's not too big of a jump for the bank. 

I have some people who may possibly want to invest and I have a pretty decent amount to throw in.  I just really don't want to give 70% of the profits to someone for doing nothing.  But I guess that's just the way this game is played.