Private Investor Structure for Development

I’m doing a residential new construction project in Charlotte NC where I need to raise private money for the equity portion of the acquisition and development. I have several investors that are ready to invest and are requesting that I forward the necessary paperwork. How would you suggest I structure this for these private investors; JV, Syndication, etc?

The total project development cost is $6.8M, $1.2M for the land purchase and $5.6M for the horizontal and vertical development. I need $1M from my investors for the deal. The conservative total profit for the project is $5.7M. How can I structure the investment to protect their participation, as well as mine? They will receive a 30% return annually for three years, which is the life cycle of the project. Thanks in advance…

If you haven’t gotten an answer yet, let me know and I’ll send you some documents that may be of help. One of them is a sample business plan that outlines the structure of a typical joint venture deal.

You are offering a security. You will need an LLC for yourself and then an LLC for your project. Your LLC manages the project LLC. You will then need a private placement memorandum and a Reg D exemption.
I would have a securities attorney do the paperwork. Not a big deal, dont let it scare you, but do it right. You want to cover your assets.

Yea it’s technically a security and you should use the forms to protect yourself. I think the form was U-7 at You can get them cheaper at$360) or ($1700).

We usually do JVs.