Investment Opportunity with 200% return

General Real Estate Investing
1

Hello everyone,

I recently ran into a colleage of mine and she presented this investment opportunity I would like to share with everyone and see what your take of it. It is located in Coeur Dalane, Idaho. What do you think?

Property Land Development & Road Construction

     Property Costs          10,500,000.00 
     Land Development, Roads & Septic          8,500,000.00 
     Marina Development          5,000,000.00 
               24,000,000.00

Condominium Construction Costs

     50 Marina Condos( 2800 Sf. @ 150.00)          21,000,000.00 
     39 Terrace Condos (2200 Sf. @ 150.00)          12,870,000.00 
     112 Lake View Condos (1000 Sf. @ 125.00)          14,000,000.00 
               47,870,000.00

Commericial Development Costs
Retail 2,500,000.00
Restaurant & Bar 2,500,000.00
Amenities 2,500,000.00
7,500,000.00

           Total Construction    55,370,000.00 
           Initial Hard Costs    24,000,000.00 
               79,370,000.00

Summary of Soft Costs
Cost of Carry 5,000,000.00
Contingency 5,000,000.00
Realtor, Closing, Misc. 11,125,000.00
21,125,000.00

           Total Project Costs    100,495,000.00 
           Total Potential Income    198,000,000.00 
               97,505,000.00

Total Summary of Potential Sales

     Marina Condos (50 @ $1,500.000.00)          75,000,000.00 
     Terrace Condos (39 @ 1,000,000.00)          39,000,000.00 
     Lake View Condos (112 @ 750,000.00)          84,000,000.00 
               198,000,000.00

Residual Income from Commerical Development

     Boats, Docks & Slips          350,000.00 
     Restaurant & Bar          150,000.00 
     Supermarket          150,000.00 
     Condo Fees          500,000.00 
     Retail Income          150,000.00 
     Boat Winter Storage          100,000.00 
           Total Yearly Residual Income    1,400,000.00
2

I looks interesting. I would ask to see any consulting (feasibility studies) work that was done on the deal. I would also like to hear about other projects they have done. Did the last deal come in on budget and on time, if not why? If they had any issues how were those issues handled? Also, I dont see any operating expenses for the residual income. Are they planning on holding the residual properties? How long? How far along are they in the process? When do they plan to break ground? When do they plan to start pre-leasing? What is the structure of ownership in the residual properties?

I could go on forever. I think it looks good but, people have a way of doing that when they want your money. I would get alot more info before moving forward.

3

Interesting…

Does a property valuation really equate like it is does this proposal?

Lake View Condo : $125,000 to construct, appraised at $750,000 once completed?

4

I have alot of land deals and property in Mass…Have done quite a few …been burnt b4 any ideas on how to get land loand and construction loans…anyone please…help…made pple over 3.4 mil in two yrs and i have nothing to show for it.