All Forum Posts by: Regina Bellows

Mike, the construction loan will only finance 75% of the total.

Development costs total $1.9M, so the owner's cash needed is about $475k plus about $50k in opportunity cost and a bit more in misc. bank fees & last min. expenses that the construction loan doesn't incorporate when they're calculating their 75%.

So that's why I'm looking for a partner. Because the amount of cash needed is too much.

Kenneth, the partner would be for funding and partnering in the development (construction) & management of the 4-unit property for a minimum of 5-10 years.

Hi, I'm trying to figure out whether it's possible to find long-term hold partners. Everyone I meet in this industry seems to want to put their money in & turn it out immediately with a 7%-10% profit. For new construction, I don't think that's possible (am I wrong?).

But my shovel-ready 4-unit project is in a neighborhood that's actively gentrifying. It's along the coast in a neighborhood just south of downtown San Diego. For example, the estimated value of the land on Red Fin went from $230k to $370k in just the 2.7 years that I've owned it (if my math is correct, that's an average increase of 22.5% per year, right?), so that's a pretty promising indicator.

Does anyone know where I might look for a long-term hold partner? Someone who wants to own about 35% of this property with me for a while? I would think 5-10 years minimum (I plan to hold it my whole life. I'm 35 now. But I'd be happy to buy out the partner at some point.)

Thanks in advance for your insights. I am new to all of this. This is my first project... I snatched up one of the last few undeveloped patches of land near the San Diego coastline and it's just sort of spiraled into a 4-plex construction project for which I need a partner to help take on part of the risk.