$2Mm Raise on front of $28Mm Deal

[Greg Keiht]

Hello to all and thanks in advance for any input / feedback.

The opportunity exists to develop 6 high end single family units . The entire development team is in place and engaged (Attorneys, architects, surveyors, engineers, builder, contractors, material suppliers, etc. etc.), and multiple letters of interest and soft commitments to fund the construction at permit. (Cleared environmental Phase I, New survey, and are at site plan stage and requesting a letter of commitment to permit from the governing body now). In this jurisdiction the horizontals are permitted with the building permit and there's no site plan review for projects of less than 10 units (though we do have a site plan).

The road is in, plat recorded, zoning done, utilities on site (but obviously will still need ran to the individual lots).

Financing at permits is fine, and it's nice to know it's there if needed. But like I've been telling them - we can pre- sell units with permits and don't even need their financing at that point as we just negotiate the draw schedule with the buyers lender or the buyer directly.

Property has a conservative - as is existing market value of around $3.5Mm - but probably closer to $5Mm in reality with new divided lots recorded, and is owned free and clear (30+ years). Approximately $1.2Mm invested to get it to this stage, with a conservative
quantifiable - projected development profit margin of 20% + .

The problem is there's a partner (the only one) on this deal who's experiencing his own personal liquidity problems which are unrelated to this project. He needs an infusion of capital to resolve those issues and is willing to give up his equity to do so.

Due to a myriad of factors IT WILL NOT FIT INTO TYPICAL UNDERWRITING CHECK BOXES. So I knew it would be hard money and / or an equity partner. Unfortunately most "Hard Money" sources aren't actually that - they're just table funding notes that fit into other check boxes to sell into the market.

So I'm tapping this knowledge base (Thank You) for any ideas, referrals, thoughts, or whatever you're willing to share.

Respectfully,

GK