Typically I contribute around $35k towards soft costs (due diligence) and my LP investors (primarily high networth individuals) contribute the funds needed to build the project from an equity standpoint (approximately $150k because we utilize construction bridge financing).I have found that on my 4-6 month construction deals, investors target around 22-30% ROI.For longer term investments where you were to collect a management fee (i.e., rentals), you would likely benefit from raising the majority of the capital, and contributing very little so that your liquidity is not tied up into any one deal.

moving forward would be to do your due diligence or run a soft title search on future properties to get a better idea of the properties situation.

A friend who's a contractor gave me a very soft, un-detailed estimate of $40k.  

I’ve watched videos where they’ve said I can get proof of funds (soft proof of funds) not hard.  

If you insist on shopping, just ask for a soft prequal and give a lender a run down of your scenario. 

- Property Insurance Alert - Many Premiums Increasing in 2024Today’s Interest Rate: 6.80%(☝️ .03% from this time last week, 30-yr mortgage)The Weekly 3: Data and News to Keep You InformedADUs Gain Momentum Nationwide: Accessory Dwelling Units (ADUs) are growing in popularity, especially with the rise of the work-from-home trend as a way to offset mortgage costs from high interest rates (JBREC)The housing market’s ‘lock-in effect’ is very real: Most sellers are buyers, naturally they have to move once they sell their home. 3% interest rates mean they won’t sell until rates come down (Fortune).Yellen Declares US Economy Has Achieved Soft Landing: Too soon to declare mission accomplished?

Let's say our fourplex has soft-story parking (that's ground-level parking with units overhead) that can be converted to two studio ADUs.

Soft bumps and very nice cruising.

The 90% LTC lender only applied the purchase price and the soft/hard construction costs & contingency to their definition of LTC whereas the 80% LTC lender also financed 80% of the settlement costs and interest reserve.

It's generally best to secure a property while demand is lower and the market is soft.