All Forum Posts by: Barry Ruby

@Ravi Karuturi

Ravi, a Project with a $10M “all in” cost will typically support a 70%-80% loan to cost (LTC).

This means that you can borrow $7M-$8M which means that you will have to invest an equity infusion of $3M-$2M.

More fundamentally, if you are asking a question like this, your priorities need adjusting.

Raising capital from whomever, and especially from friends and family must come after you have acquired and can demonstrate the skills necessary to build a $10M ground up development.

I believe that if you pursue a plan to raise the equity required that you will find it very difficult to secure bank debt without a track record and or the skills noted above.

Feel free to reach out to me if you want to talk. I’d be happy to discuss this with you in further detail.

All the best!

@Daniel Coleman

No matter how experienced the developer and the team may be, as an investor, you owe it to yourself to conduct your own due diligence.

This includes running analysis on the developer’s projections to determine how solid the deal is and its sensitivy to modifying key performance assumptions.

@Jared Robbins

Jared,

I can send an input worksheet to you. If you populate and send it back to me, I will send you a full presentation ready analysis of your project.

Feel free to contact me if you'd like to talk.

@Emily Germain

Are you looking to do a value add or ground up development Emily?

In any event, I can send an input worksheet to you. If you return a populated copy back to me, I will send a full financial presentation analysis to you.

Please let me know if you would like to do this or if you have any questions.

@Siva Singaram

Building a few homes is a great start to getting into ground up development.

In addition to seeking assistance in the permitting process and construction supervision, a good deal of attention needs to be paid to financial and legal deal structure.

Have you defined the specific requirements and business relationship between yourself and the mentor you are seeking?

Let me know if you need help in doing so.

@Mark Williams

A business plan would be helpful and highly recommended.

Learning the language and metrics of the real estate industry and how to conduct financial analysis is mandatory.

Feel free to contact me if you have any specific questions or needs.

@David Aloush

David,

Unfortunately, to my knowledge there is no Mentor “Store” I know of to pick one up.

However, knowledge and help is available from experienced folks if you can clearly present a specific situation or questions to them.

Expecting a mentor to take you under their “wing” and walk with you through whatever process you are interested in is by and large an extremely heavy lift.

Please feel free to PM me if you’d like to talk or run anything by me and I’ll help you if I can.

@Alexis De La Rosa Zarazua

Alexis,

The “right” acquisition price is or at least should be the price that supports an acceptable return for the risks taken to do the deal.

@Millon Blackshear

Hi Millon,

There’s not enough here for me to make an informed decision.

I can send an input sheet. If you populate and send it back to me, I’ll send a full analysis back to you to help you figure out how the deal works and if it is doable on your end.

@Said Abou Nader

As a mentor myself, I find that the most effective way for me to be of service to my mentees is to understand each of their specific needs.

If you are considering engaging with a mentor you will be best served by having a clear picture of where you are and where you want to go.

Once you have established a goal you can decide on the path to take to get there.

Choosing the most appropriate mentor needs to be framed by your personal preferences and journey.