Im buying a zombie subdivision

[Scott Moore]

I have been flipping houses for 3 years now I. Northern Arizona. More specifically I specialize in modular and manufactured homes, so my deals are a bit more like new construction or "demo and replace".

Currently I have a 69 lot subdivision under contract that is ready for homes. I have it under contract for 1.95m (the sellers put about 2.8m into it before the market crashed), we are getting a great deal.

I have a lisenced private lender who wants to lend 1.7m and I have a handful of private individuals what would like to invest the additional capital to do the project. The private individuals would most likely be equity partners. 

That's where I'm at right now and my quests are

1. If we take on these private investors what do we need to do to cover our associates? PPM?

2. Since I have a lot of interest, but no capital of my own, what strategies would you recommend I look at for raising get the funds?

[Account Closed]

I would make a deal with one or two builders and give them a large discount on some lots for them to front the money you need to close with. This serves two purposes. First is that you raise the needed funds without having to give away the farm and second, you get activity started quickly in your subdivision. Lots sell quickly and at higher prices when people see houses being built