Indianapolis Deal Structure

[Josh H.]

Looking for thoughts on best way to structure deal that brings capital to potential project.

Opportunity to buy 30+ parcels of land for 30+ single family homes in Indianapolis. 

Goal would be spec build starter homes or build out and hold as rentals for 2-5 years then sell. 

[Greg Dickerson]

It depends on how much capital your looking to raise and your investors return requirements.

If your raising only the down payment or equity portion you should offer a straight Preferred return of 6-8% deepening on your investors requirements.

If you’re looking to raise all the capital from investors then a 50/50 split would be more in line. You could offer a pref plus equity.