Ok - I hope I don’t break any rules of this forum and I hope I’m posting in the right place… if I’m not, kindly let me know and please feel free to point me in the right direction.
I just posted this in the REI Club FB group - and they told me to come post it over here… so that’s what I’m doing -lol
Anyways… here’s my question
Does anyone know any “BIG” Real Estate Investors w/ access to LOTS of capital. I’ve got access to some land (owned outright) in the Bahamas, and I’m looking for someone to come in and put a resort on it (at least…that’s my initial thought)
I’m NOT a real estate investor… so I’m not really looking for money. I 'm looking for someone who is saying to themselves “Man…if I had some land in the Bahamas, I’d love to put a resort there” - lol
And NO… we’re not looking to sell the land
Or…if you know where I could find someone like that, that would be great!
Hope this little post made sense
Thanks
Devon
Hi,
I sent you a "Personal Message" (PM) but you obviously chose not to answer it!
This is an interesting post asking the big question:
“Does anyone know any “BIG” Real Estate Investors w/ access to LOTS of capital. I’ve got access to some land (owned outright) in the Bahamas, and I’m looking for someone to come in and put a resort on it (at least…that’s my initial thought)”.
Ok, their is two types of capital, debt or equity! For debt capital you have to have a stable big business with good cash flow and ability to qualify for a loan. On the other hand we have equity investment so if your land is worth say $2m and the cost to build the resort is $20m and cash on cash calculations add $4m to the overall resort debt because it took 2 years to build at a investor sought yield of 10%, then the land owner now owns 7.6% of the resort in exchange for his land!
You see any way you cut it you will have to sell your land into the resort in order to see it built, without the land title no investor will put up the cash to build the improvements, say 300 rooms with a couple of bars, a nightclub and a couple of restaurants.
But most investors will want to buy the land outright for cash as the investors with the developers will be in to this by $25m by the time of it’s grand opening and no investor or developer wants to leave 7.6% of profits going to a land owner as that is a fairly large percentage right off the top.
It will be better for the developer and investors to buy out the land even if it means agreeing to a royalty of 1/4 or 1/2 of one (1) percent of profits.
You see since I am a developer myself I just don’t need to have your property, I can go anywhere in the world and find resort quality land available for purchase without needing to pay a royalty or incentives!
Normally when someone offers their land up to a developer for a resort development project it is because the owner has not been able to sell it on the open market and allowing a developer to step in, negotiate a price, create a note and deed of trust and then subordinate that note to new resort development financing allowing the new group to pay for the land at a later time either as a balloon or as monthly amortized payments providing cash flow for the land seller.
I am positive my post makes sense!
Good luck,
GR
My question is - do you own the land or do you just know about it?