Howdy folks: Here`s my situation. I got a call from someone in the middle east who has 2 side by side properties ( 6 units total) in downtown Ottawa. Both are run down and in an area that has been transitioning over the past few years with new residential buildings and some highrises going up around almost every street corner.
He knows the property could be condominionized or the units upgraded to increase rents but doesn`t seem to be able to decide what he wants.
The owner wants to field some `offers` and is open to ideas on how to optimize the value of the properties. While he seems to have a sense of the property`s potential, my understanding (from a conversation on a very bad phone connection) is that he doesn`t want to or doesn`t have the capital to inject into anything major. I do get a distinct feeling he isn`t interested in selling either property.
I just got his email address since phone connections are very weak each time we talk making it very difficult to understand. I am preparing a list of preliminary questions for him before I approach potential investors. The answers to these questions would provide me with the frame work from which I could produce a presentation to open discussions with potential investors.
I`m hoping that some of the more experienced investors on this board could provide me with some feedback on these questions and perhaps their insight into how I could proceed with exploring this opportunity with the owner and other investors. Once I have a clearer understanding I plan on advertising for potential investors.
Here are the questions.
+++++++++++++++++++++++++++++++++++++++++++++
What turn-around time frame from project commencement to completion are you comfortable with?
What steps are you willing to take in laying the groundwork (aside from a letter of intent and a written agreement or contract) to demonstrate to potential investors your level of commitment to a project?
What are your expectations with regards to investor financing (25%, 50%, 75%, 100%… ? ) of any proposed project. (or how much of the project cost are you seeking?)
Are you willing to offer potential investor(s) a stake in the property equity in return for funding? [seems like an obvious question to me but I just want to make sure he is being realistic with his expectations]
Will you be making any financial contribution(s) to the project? (Investors most often look at this as a critical element in their decision making process)
What is the approximate Loan-To-Value (LTV) of the properties at the current time?
Ideally, what would be the preferred exit strategy for both yourself and the investor(s)?
+++++++++++++++++++++++++++++++++++++++++++
Any `mindshare` from those in the know, would be really, really appreciated.
Thanks
He knows the property could be condominionized or the units upgraded to increase rents but doesn`t seem to be able to decide what he wants.
The owner wants to field some `offers` and is open to ideas on how to optimize the value of the properties. While he seems to have a sense of the property`s potential, my understanding (from a conversation on a very bad phone connection) is that he doesn`t want to or doesn`t have the capital to inject into anything major. I do get a distinct feeling he isn`t interested in selling either property.
I just got his email address since phone connections are very weak each time we talk making it very difficult to understand. I am preparing a list of preliminary questions for him before I approach potential investors. The answers to these questions would provide me with the frame work from which I could produce a presentation to open discussions with potential investors.
I`m hoping that some of the more experienced investors on this board could provide me with some feedback on these questions and perhaps their insight into how I could proceed with exploring this opportunity with the owner and other investors. Once I have a clearer understanding I plan on advertising for potential investors.
Here are the questions.
+++++++++++++++++++++++++++++++++++++++++++++
What turn-around time frame from project commencement to completion are you comfortable with?
What steps are you willing to take in laying the groundwork (aside from a letter of intent and a written agreement or contract) to demonstrate to potential investors your level of commitment to a project?
What are your expectations with regards to investor financing (25%, 50%, 75%, 100%… ? ) of any proposed project. (or how much of the project cost are you seeking?)
Are you willing to offer potential investor(s) a stake in the property equity in return for funding? [seems like an obvious question to me but I just want to make sure he is being realistic with his expectations]
Will you be making any financial contribution(s) to the project? (Investors most often look at this as a critical element in their decision making process)
What is the approximate Loan-To-Value (LTV) of the properties at the current time?
Ideally, what would be the preferred exit strategy for both yourself and the investor(s)?
+++++++++++++++++++++++++++++++++++++++++++
Any `mindshare` from those in the know, would be really, really appreciated.
Thanks
