he pays the million for all construction costs. he takes home 67%.

. @ $700k with 5% down : you would need $35k : why $700k if this is listed for $600k Bc as an example: you could do a construction loan where you buy the home for $600k and use $100k for the ADU.

ThanksIf investors are doing multiple real estate ventures, construction and rental, it would help that they can do the accounting correctly. 

They have degrees and interests in different segments of what I think are important facets of the real estate game, one will be graduating with a degree in construction management and the other in accounting.

Looking for advice on how to get 50k for the initial construction of phase 1.

I’d say investors that choose better locations and better properties within those locations will have a much better chance of success as the big risks will be minimized (by better properties I mean with less deferred maintenance, not necessarily newer but newer can sometimes reduce operating expenses, or older with “good bones” that are well maintained, especially if you’re needing to outsource any work and manage it remotely).

Plus you still have to actually underwrite the entire deal (purchase, construction, carry, etc to develop accurate CF/profit).

I see far too many having effectively no co-invest once you net out the acquisition fee.David:We have the same definition of waterfall returns, so let me explain my reasoning.Ignore for a minute that many syndications have all kinds of fees, acquisition fees, construction management fees, refinance fees, disposition fees, etc, and assume that the syndicator is mostly focused on the returns they will make from the deal itself. 

Purchase price: $215,000 Cash invested: $45,000 Long term new construction buy and hold.

Question: When buying an old building (constructed in 1900 with an effective build year of 1960), what should I look out for and ask about?