InstantForum.NET v4.1.3VC Fodder Forumshttp://forums.vcfodder.com/admin@vcfodder.comFri, 16 May 2008 21:34:03 GMT20http://forums.vcfodder.com/Topic1099-84-1.aspx13 views and no posted replies.....hmmmm.</P><P>Any opinions??Fri, 18 Apr 2008 10:35:09 GMTcdmotorhttp://forums.vcfodder.com/Topic1099-84-1.aspxOkay...let me try to describe what is going on here, as 2 of my friends are debating this scenario with me. One of them has been a reasonably successful upscale home builder in the US for over 20 years.</P><P>They have a preferential position on the acquisition of some land in the Caribbean (DR). This is due to a multi year relationship with the landowner. Suffice to say, they could buy in to a piece of land at 20-30% less than current market value.</P><P>They are looking to develop and build a very high quality townhome and private villa community with a golf course. </P><P>Regardless, other than the relationship with the landowner, they have no money. One of them has worked for the last year or so (and probably spent $100K or so) putting together a master plan, meeting with 5-star architects, engineers, water treatment people, real estate sales and marketing companies, etc. </P><P>Total project expense is projected at $325-350 million.</P><P>Total project income is projected at $450 million.</P><P>I have seen the numbers, and agree with these estimates. </P><P>Problem is....they need about $30-40 million to get started. Infrastructure, excavation, etc.</P><P>Here's the debate....</P><P>* my opinion is that they are kidding themselves to think they can raise that type of money, with none of their own invested.</P><P>* they feel that since they have a complete presentation, including financial projections and a preferential position on the land, that they will be able to borrow the money from "somewhere". Either a bank loan "guaranteed" by a "backer", or from a "hard money" lender(s). Obviously, they are willing to repay the note inside of 4-5 years, with interest (10% ?)PLUS 30% of the net ($35 million?) to the backer. According to them, they have a "committment" from a NYC hedge fund to do the deal....but no meetings or money has materialized yet (it's been a month).</P><P>I say "BS". What do you say?Thu, 17 Apr 2008 10:23:08 GMTcdmotor