Silent investor in a Development project 13 townhomes
Hello, I have just agreed to purchase a land in San Francisco Bay Area. The land is not yet entitled, but will have entitlements soon from the city. We have done extensive amount of architectural and engineering on the land already. We have spent a little over 120K in the process.
Investment
The cost of the land, $700,000 (been in contract for over a year) Land appraised at 1.9 Million.
Architectural engineering cost, $120,000.
City permits - 150,000.
Total costs $970,000
Exit strategy
- Sell the land after entitlements - $2,550,000
profit 1,580,000
- Build the townhomes
- additional investment 4 million (construction).
Resale value of each townhome $900,000
total investment about $5,100,000
resale value after completion of the project $900K X 13 townhomes =11.7 million
total profit 6.6 million rough estimate
I have 1 other project in concord 100 condos. That project is taking a lot of my financial resources, I have started and invested time and money in this project. I am looking for a investor in financing the purchase. We were in contract for 850K however the seller has offered us to buy the property before the entitlement approvals for $700,000. I would be willing to bring a partner or an investor in for a cut out of the project.