How do you get landowners and investors to fund your project?

Offer a premium on the land/lots for holding through exit on a seller carry. If they have no existing debt on the property you can use a intercreditor agreement between your lender and the seller to disclose the arrangement, secure their interest and they make more on the land while the investor preserves liquidity.

If there is a community on the ground, do your best to proactively engage with them. They may not all become allies of the development, but if you are honest, accurate, genuinely listen to their needs and only promise what you can deliver, you will build goodwill and trust with them.

Start by conducting extensive market research to identify the demand for your project. Understand the local market trends, demographics, and competition. This data will be crucial in demonstrating the potential for your project's success.

How we do our due diligence in a new market: - Lots of online research - Visiting the place with a Real Estate broker and chat with locals - If we go for it, we'll buy an existing property under GPs names to test & optimize a long-lasting value-add strategy - If we succeed, we make it open to our investors, while co-investing in each of the project This is to have skin in the game and align GPs and LPs interests together, in generating superior tax-efficient returns.

To increase your chances of securing funding for your project, ensure your business plan has your objectives, strategies, and financial projections. Attend industry events, build relationships, and use social media to increase visibility. Lastly, stay committed, refine your pitch and business plan, and be patient.

Secure Legal and Regulatory Approvals: Ensure that you have obtained all necessary permits and approvals from local authorities before approaching investors and landowners. Having a project that is "shovel-ready" can make it more attractive.

Use technology such as location based map data, and generative design to understand the site(s) you are exploring, and have a general overview of the entire locale/surroundings.

Ensure that your project adheres to all local zoning, land use, and environmental regulations. Being compliant with the law is crucial for securing investment.

Navigating through land use and zoning regulations is like decoding a complex algorithm; you need to understand each variable. We familiarize ourselves with all the rules and incentives that could affect the project. In a recent project, we leveraged tax incentives for sustainable building, turning a regulatory requirement into a unique selling point.

Have a clear, concise value proposition and deck about the potential development. Provide images when you can, but ensure that you disclaim them if renderings, or credit the source for transparency. For those who may not read as much, or need to fact check reporting, a one-pager with basic facts will be helpful also.

Network and Attend Industry Events: Attend real estate industry events, conferences, and local networking events to connect with potential investors and landowners. Building relationships in the industry can be invaluable.

I attend events for the food and booze. A.k.a. having fun. Coincidentally, it seems to be the best way to network ??. Odd is that the person who attends with the intent to network with as many people as possible, often fails to network at all. Relationship is built not by a business card, but by knowing the genuine you.

I love helping my clients to come up with unique opportunities for solving potential problems. My favorite example is the group that got the remaining financing they needed for an industrial building by getting "discounted" rent payments from a new tenant. They got the tenant to pay 10 years' rent up front to get a nice discount, while those funds provided the needed initial financing for the developer - without interest. Look for the "everybody wins" scenario while building relationships.

Building relationships with landowners and investors is like planting a garden; it requires nurturing and time. We maintain open lines of communication and are transparent about project updates. Our long-term relationships have often led to repeat investments, as was the case with our flagship project involving 21 buildings.

The deck should be simple enough for a non-sophisticated investor to understand. It should be able to answer these questions: - Why should they invest with you. - Who you are and your past experiences. - What sort of returns they should expect, and the assumptions you've made. - How you mitigate risks. And for governance and transparence, provide as many details as possible in the appendices, for the sophisticated investors.

Showcase Your Track Record: If you have a successful record of accomplishment in earlier real estate projects, highlight this in your pitch. Investors and landowners are more likely to trust someone with a proven history of success.

This translates to a pitch that is not just a presentation but a carefully orchestrated narrative. We tailor this narrative to resonate with the specific needs, interests, and pain points of each investor or stakeholder. For example, in our recent $50 million mixed-use development project, we didn't merely present numbers and projections. We told a story of innovation and reliability, underpinned by our technology-led execution process. This approach serves as our unique value proposition, setting us apart in a crowded marketplace. We emphasized how our technology streamlines project timelines, enhances regulatory compliance, and offers real-time transparency—factors that collectively contribute to increased ROI.

One of most recurrent misunderstandings or questions is about how long must be the pitch ; I did long one , detailed and exhaustive and still mid way I lost the audience focus. If there is a universal rule of thumb is about narrow your pitch deck , give answer to key questions the audience might consider and exhaust all in max 15 / 20 minutes. Adapt adjust make lean as long answer the key questions. It will be audience to pick up the one care mostly . Exit strategy and risk valuation are as well catalysers of interests not less than projected return and cash flow trends.

When it comes to meet potential investors to invest or landowners to partner in a project what is crucial is to present in just few slides what is the real upside value , the specs of potential risks their likelihood to happen , the intertwined exit strategy. The degree of pitch Fanciness is strictly related to the audience characteristics ; it so advised to study the profile of the attendee and design the key that would unlock their attention to the pitch.

The best negotiators believe in a non-zero-sum-game. In fact, they hardly negotiate. They take a step back and objectively finds a win-win situation like solving a puzzle. The worst negotiators believe in a zero-sum-game. They overthink all angles, do too much, and fumble. This is often the results of focusing too much on "what's in it for themselves".

Negotiate Fair and Clear Agreements: When you engage with potential landowners, be prepared to negotiate mutually beneficial agreements. Ensure that the terms are clear and legally sound. With investors, be transparent about the terms of their investment, expected returns, and the level of involvement they can have in decision-making.

Align Interest of the parties is the rule of thumb to have a successful negotiation term process. Analysis and estimate the potential favourable outcome for the counterparty of your intelligence exercise . Alignment of interests is strictly correlated as well to the level of risk profile which differ across the parties at the table .

Negotiating terms is similar to a well-played poker game; you need to know when to hold and when to fold. We aim for win-win scenarios that satisfy both parties. In a recent negotiation, we offered landowners a share in the future profits, aligning their interests with the project's success.

Here's a typical breakdown of the costs of a residential development project ??: ?? Land: 10-20% of total costs. ?? Direct Costs: 35-45%. This includes all the hands-on construction and material expenses. ?? Indirect Costs: 10-20%. Think admin, insurances, legal, interests on construction loans, equipment depreciation, utilities, inspection, marketing, etc. ??? Government Fees & Taxes: 10-20%. ?? Promoter's Profit: 10-20%. ?? Rule of Thumb for Contingency Reserves: > For direct costs: Reserve 10-15% of direct costs for renovations, or 5-10% of direct costs for new constructions. > For indirect costs: Keep aside 1-3% of the building value excluding land. Knowing where your money goes helps in forecasting and ensuring smooth operations.

Managing the project properly is as important as finding a good deal. If you don't manage it well, you could bleed dollars, thereby eroding your investors return, but also (if an acquisition) you could decrease your stabilized NOI, thereby reducing the price a buyer will pay you upon exit. It is essential that you have the right team in place to handle your project. Accountants, tax advisors, lawyers, property managers, contractors, consultants, etc. You need to have a go-to relationship when issues arise. You should have all of these in-place or at least a few recommendations from other operators BEFORE you start the project.

Project management is like conducting an orchestra; every instrument must be in tune for the music to be harmonious. We keep stakeholders informed and involved throughout the project. Our technology-led approach ensures real-time updates, which was pivotal in the timely completion of our 16 market-rate multi-family projects.

In simple terms to get funded as landlord a project , you need to come out with best valuable options in developing the potential upside of a land plot. Real Options analysis might help in picturing out the likely hood to happen of a feasibility plan, on downside measure the risks and the tail of the same .

We will get it done for you professionally and profitably no matter your project size, location or stage, our role is to complete your project on time subject to contract.