Financing a project

[Chris Richardson]

I am a general contractor and am just abuot ready to build a 4-plex this summer. How do I approach investors or people I know with money to help finance the build? Whats in it for them?

[Jeff Rabinowitz]

As Ned says, ultimately your investors will want a return on their money but their first concern will be a return of their money. You have to convince your investors that their funds are reasonably safe. Have you built 4-plexes before? Were those projects profitable? Do you have any of your own funds in this deal? Will the investors be on title? Do you have proper insurance? What if you get injured? Will the project proceed? If you can show that your project will be profitable (comps, etc), that you can complete it properly and that you are serious about protecting your investors you will have a much easier time finding money partners.